Commercial Mortgages: Why You Need a Hard Money Loan

Our flexible and efficient commercial hard money loan options can be used to acquire or refinance commercial real estate assets such as mixed-use structures, retail centers, self-storage complexes, condominium buildings and restaurants. As one of the premier hard money lenders in the industry, we have the resources and expertise to assist borrowers in obtaining the funding they need for their commercial projects when they need it and with a fraction of the stress and hassle associated with dealing with conventional lenders. Our team of industry professionals is ready to work with you to get you the best financing options for your commercial mortgage. Here’s an overview of why hard money loans are ideal for commercial mortgages and what you can expect in the process of obtaining one with Express Capital Funding.

What is a Commercial Hard Money Loan?

A commercial hard money loan is a specific category of mortgage that uses finances from private lenders to provide borrowers with the requisite capital to conduct property transactions for commercial property assets. Our loan deals will provide you with the resources you need to quickly make investments in promising commercial projects without having to undergo the time-consuming and labor-intensive conventional financing process.

What Are the Advantages of Using Commercial Hard Money Loans?

Short-term commercial loan options are ideal for expansive commercial development projects as well as those smaller in scope. When a borrower goes through a traditional bank to get funding for a commercial property it can take weeks or months to go through and they will typically carry with them higher interest rates—which means you end up paying way more in the long run than you need to. Alternatively, hard money commercial loans offer borrowers a much faster loan turnaround time. The median closing timeframe for most commercial hard money loans is a matter of days as opposed to weeks or months and there are minimal upfront fees. Because our commercial loans are sources from private lending sources, we have the flexibility to work with you and customize your terms so that they are aligned with your long-term investment and business goals—a luxury that traditional banks simply don’t have the time or resources to offer their clients.

What are the Requirements?

When it comes to commercial hard money loans, the underwriting and approval decisions are premised on the borrower’s hard assets (the property) as opposed to the borrower’s credit score and financial status which normally dictate decisions with conventional financing routes. The exact requirements for our hard money loans can vary somewhat based on the type of project and the experience of the borrower in the real estate industry. Regardless, at the end of the day, our requirements are considerably less strenuous when compared to traditional banking loans. One of the most common questions we get asked is if borrowers can obtain funding via hard money loan if they have bad credit. The answer is usually yes, but it again depends on the type of project, the value of the loan and their experience. Our expert team of experienced lenders can work directly with you to explore your funding options and find a solution to get you the money you need for your commercial real estate objectives.

When is a Good Time for a Commercial Hard Money Loan?

Here’s just a few scenarios in which a commercial hard money loan would be an ideal solution to obtain fast and flexible financing:

• You need a mortgage fast and can’t wait the three-to-six months for a conventional bank loan
• You need a bridge loan or comparable short-term loan to bridge the gap between commercial property transactions or development phases
• Although you have considerable equity in the property, the asset has existing liens, judgments, unpaid utilities that you need cash quickly to resolve
• You need a loan option without all the extensive documentation requirements of a traditional bank
• You are a foreign national and don’t have the requisite credit depth to obtain a bank mortgage