Commercial Hard Money Loans – Smart Solutions For Purchase Or Refinance Commercial Properties!

Commercial Hard Money Loans – Smart Solutions For Purchase Or Refinance Commercial Properties!

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.


Three Business Scenarios Where Commercial Hard Money Loans Can Be Used!

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.


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    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.