Have you tried everything to get your commercial real estate financed and grown tired of getting your commercial mortgage loan request rejected? If so, there’s one more commercial real estate loan option that you should try as your absolute last resort to get your deal funded, and that’s a Commercial Hard Money Loan. These loans make a great deal of sense because not all commercial buyers qualify for financing through traditional lending institutions.
Hard money commercial lenders look primarily to the property as their source of repayment and that’s why the whole loan process gets fast & easy. These loans are specially designed to help acquire, construct or simplify payments for income producing properties, such as retail centers, office complexes, hotels, and apartments. Commercial hard money loans can also be used for various other purposes, such as advancing businesses, refinancing existing loans etc. The primary rationale for borrowers considering a commercial hard money loan is that traditional commercial financing options are not viable for them cause of their low credit scores or a need to obtain commercial financing quickly.
Why Commercial Hard Money Loans?
Fast Approval and Funding:
The most common advantage of commercial hard money loans is their speedy approval and funding. These loans can be processed within a day because the lender will only consider the property, your equity or down payment, the exit strategy for the specific property, your experience, and cash reserves to make the monthly payments.
Fewer Loan Requirements:
Commercial hard money loans have fewer requirements compared to bank loans. Some of them include having enough cash to make the monthly loan payments, adequate equity on the property, ample experience in some cases, and a reasonable exit strategy. Because these types of loans have fewer requirements, their chances of approval are high. On the other hand, banks have strict and lengthy requirements meaning that make it difficult to get a loan approval.
Available For Variety of Real Estate projects:
Commercial hard money loans can be used to fund projects that aren’t financed elsewhere. Most commercial hard money loan providers approve loans that banks cannot. For instance, fix and flip loans. This involves purchasing a property after applying for short term commercial hard money loans and making the necessary repairs before selling. Because the property is to be sold as quickly as possible, you will only need a 12-month loan which isn’t offered by conventional lenders.
No Prepayment Penalty:
There is no prepayment penalty with commercial hard money lenders. They do not impose restrictions on a borrower for paying back the money they borrowed. A Borrower can pay back some or all the money they borrowed, at any time during the loan term without incurring a prepayment penalty.
Flexible Loan Terms:
Commercial hard money lenders are flexible with their loan terms. Flexible loan terms offer more control over how you repay your borrowing. Hard money lenders are not restrained by regulatory requirements, shareholders, and red tape.
The Bottom Line:
Commercial hard money loans are smart solutions for purchase or refinance commercial Properties. If you have plans to purchase new or existing commercial properties, you can take out a commercial hard money loan to help finance the purchase and any development or construction after the fact. Commercial Hard money loans offer a short approval process, interest-only payments, flexible loan terms and can fund the purchase and renovation of an investment property quickly.
Magna Capital Group, Inc is a commercial hard money lender providing financing solutions & commercial loans for mortgages to real estate owners. We have the proven track record as a premier hard money commercial lender to help. We offer loans for purchase or refinance and help to make the typically complex commercial real estate purchasing process as simple as possible. We understand even the most complex commercial hard money loan scenarios and provide asset based hard money loans to real estate investors, builders and commercial property owners. We offer some of the most favorable commercial hard money terms in the industry.
If you looking for the right kind of commercial real estate loan, Call us today at (310) 734 4044 or email at info@magnaloans.com to find out the facts about commercial real estate loans and determine if they are appropriate for you at this time.
