Three Business Scenarios Where Commercial Hard Money Loans Can Be Used!
Category : Commercial Loans , Hard Money Loans
If you are an investor and need quick money to boost your real estate business, then you can use commercial hard money loans quickly and easily compared to conventional loans. Commercial hard money loans are secured by a variety of different commercial properties. Commercial hard money lenders use their own finances to invest in properties. Most of the real estate investors opt to apply for commercial hard money loans as a last alternative after failing to secure a conventional loan to boost their investment.
In case if you one of them who are unable to qualify for a traditional loan and aren’t sure whether a commercial hard money loan is an option for you, below are three business scenarios where commercial hard money loans can be utilized.
1. Quick Financing For Real Estate Investors:
If you have found a great commercial real estate deal that you want to purchase and secure it quickly, then you need to get financing quickly to speed up the closing process. Commercial hard money loans lenders can provide you with the funds you need quickly compared to conventional loans. Conventional loans usually require the submission of several documents. After you submit the required documents, they will go through several verification channels, and this process can take up to a month depending on some factors before the loan is approved. However, because a commercial hard money loans lender uses his or her money, there are fewer requirements for a loan to be approved. This also accelerates the decision-making process of the lender, and to quickly approve the commercial hard money loans application.
2. New And Small Business Owners:
Small businesses are often high risk because there is no way to know whether it will succeed or fail. This risk makes it difficult to get conventional funding for small business owners. Both new and already established small businesses face one common risk of not getting enough funding. Most conventional lenders choose to invest in businesses that have already proven to be successful or that have a high potential of becoming profitable. If you are in such a situation, a commercial hard money loan can provide you with enough finances to run your small business or boost your existing business.
3. Investors With A Low Credit Score:
If you are planning to purchase a property or to invest in a business, but you have a low credit score, consider applying for a commercial hard money loan. For conventional loans, credit score is a primary factor in the loan decision and that’s why most investors are denied conventional loans. On the other hand, commercial hard money loans have less stringent requirements, and you can easily qualify for such loans compared to traditional loans. Private Money Lenders will look more at the situation and the cause of the credit flaws and rely on the collateral and higher points and rate to mitigate risk.
The Bottom Line:
Commercial hard money loans are easiest and fastest financing option for those investors who have a low or bad credit score. If you have found a great commercial real estate deal but are unable to qualify for a traditional loan, you might want to consider a commercial hard money loan. Also, if you own a commercial property, but either your company is losing money or your credit is poor, you can still easily obtain a commercial hard money loan.
Magna Capital Group, Inc. is a commercial hard money lender providing financing solutions and commercial loans for mortgages to real estate owners. With over 35 years of experience, we are able to work with any loan scenario. To know more about commercial loan programs, please feel free to call us now at (310) 734 4044 or email at info@magnaloans.com.