Critical Research Results of the Commercial Hard Money Loan

As for the basic definition of a Commercial Hard Money Loan, it can be described as a Cash Finance Option or Business Loan for someone who has trouble getting a regular financial loan. They are always given to someone with Real Estate as the collateral asset. If the borrower can’t pay back the loan, the Real Property is taken as collateral to ensure the Commercial Hard Money Loan eventually gets paid back.

The basic rendering of the various types of Retail Loans can also be defined as Sub-Prime Lending, Near Prime, B-Paper or Second Chance lending options.

So joking apart would someone take out a Commercial Hard Money Loan verses a standard Retail Loan? It’s because there are determining factors such as Below Par Credit Score, Enterprise Statistics, consequential current Income Level that would keep someone from getting prime money financing or killer rates, so the debtor in these cases will take for what they can get.

Some companies have a lowest amount they will lend you when helping you get a Retail Hard Money Loan. The companies we have researched start out at $300,000 and go up into the millions for Retail Real Estate Properties.

There are also what they call Mezzanine Loans which is a loan that’s paid back subsequent to the release or refinance of the Retail Property. It’s possible for a lender to secure a portion of the proceeds upon sale of the Hard Loan debt. These loans tend to have preferable structures such as good debt and equity ratios.

You can also get a Hard Money Bridge Loan. This is a temporary loan you would get while you’re waiting for your primary loan to clear. Sometimes in business you have to make a move or merger faster than it would take for your main loan to process. So in this case you do a Bridge Loan. This loan would merge into the main loan you got later.

There are also Hard Money Construction Loans, which is another distinctive Money Financing alternative that can be applied to for small home projects to larger Retail Property projects such as the development of a strip mall or tract home development project. In most cases for construction projects there is a reserve account setup to make sure that money is allocated properly as the project keeps moving forward.

A Commercial Hard Money Loan is typically used in both Urban & Suburban areas. The current Prime Rates are from 11 - 16% verses the 6-7% for a standard loan. Usually all associated Points & Fees are included in the loan and payments from these are dispursed upon closing the loan. Also note these are Short Term Real Estate Loans that are usually transferred over from 1-3 years.

It is always comforting to know that there is big money available to you when you need it in the form of a Commercial Hard Money Loan. This article went over the main types of loans and how they can benefit you. However beware of the common Predatory Lenders that lurk in this industry. Expect to pay 11-17% for a Real Estate Loan like this. If you are asked to pay anymore more, imho you are being taken to the cleaners. So before you jump into anything like this, just do your research and you should come out okay.

Let Brian Garvin & Jeff West teach you More about Commercial Real Estate Loans at http://www.commercialrealestateloansnow.com and read more about the Commercial Hard Money Loan at http://www.commercialrealestateloansnow.com/commercial-hard-money-loan.html today. You can always call us for Free Real Estate Advice as we have a lot of resources to help you find what you need, with no obligation.