Get your Commercial Hard Money Loan
Hard money loans are for short term needs, private lender loans are easier to obtain than bank loans because hard money lenders specialize in funding commercial loans without the need to meet any regulatory commitments for lending. Of course, the consequences of getting a hard money loan are: higher interest rates and fees. If you're looking for a hard money commercial loan, here's how to get one.Get your taxes. Most hard money commercial lenders will require you to provide at least two years of business and/or individual tax returns. This is used to assess the financials of your business.Have an updated appraisal. Hard money lenders often ask for the value as is and the improved value of the property.Have a Business Plan with a letter of intent. Hard money lenders want to know how you plan on using the property. Give specific details rental income, assets, and sales you expect to receive.What is your Credit Score? If you do not know obtain a copy of your credit report. Though hard money lenders don't look as closely at your credit score as banks, they often base things like points and interest rate on your credit score. With this information you can contact and find out how much funding you can receive.
Comments (4)
James, I have seen intererest rates from 4% up to 18% and points from 3 to 10. It varies based on the risk of the loan. Every loan is unique we rarely have two loans that are the same.
Ken Garratt, almost 15 years ago
Ken, Will you give out what you are seeing as the "typical" terms and rates right now?
James Ward, almost 15 years ago
James, Approval for Hard Money loans has changed in the past 6 months. You need to submit some of the same paperwork (financials) for review. If you submit all the necessary paperwork the first time the process can range from two 12 weeks it depends upon the complexity and what your funding goals are. Again the terms will vary based on the risk. Ken
Ken Garratt, almost 15 years ago
Ken, It seems that you have to apply for hard money just like you would for "regular" money, according to your post. So, how long does it usually take to get approved? Are the terms much like those of residential hard money? Thanks, James
James Ward, almost 15 years ago