A commercial loan is a type of hard money loan that is allows indivuduals or corporations to receive the capital they need to purchase, repair, or build a commercial piece of real estate. Learn more about commercial hard money loans to see if it is the best type of loan for you.
Table of Contents
What Is A Commercial Hard Money Loan?
Similarly to other type of hard money loans, a commercial hard money loan is a real estate loan that comes from a private lender. Often times it is thought that the only way to get a loan for a commercial real estate project is to work with a traditional banking institution but more and more individuals have been switching to private lenders because of the flexibility it offers them. By working with a private real estate lender you will be able to receieve capital in a wide range from $50,000 all the way up to more than $20,000,000. The amount of capital you are able to receive depends on the hard money lender you are working with and the size of project you are working on.
There are a wide variety of different types of commercial projects that range in size. There are smaller projects such as small apartment complexes, but then there are much larger projects such as entire shopping complexes. No matter what the size of your project, it is possible to receive a commercial loan from a private real estate lender. This will help you get the capital you need in a shorter time, with better rates, and with more flexible terms compared to more traditional lending options available.
What Are The Benefits of A Commercial Loan?
There are a variety of different benefits when it comes to receiving a commercial hard money loan, but the most well known benefit is how quickly you are able to receieve capital. Traditional commerical loans are known to take months in order to receive capital because of paperwork, background checks, strict business planning, and more. When you are working with a hard money lender you will be able to receive capital as quickly as just a few days in many cases. There are far less legal hurdles and the entire process can move much quicker. Below are a few more benefits of a commercial hard money loans.
- Closing times are much quicker than traditional commercial loans because of less bureaucratic drama.
- The terms and rates are much more flexible and can be customized to fit the needs of both parties.
- The amount of capital you can receive can range from a small loan, to a large loan that is greater than $20,000,0000 depending on the hard money lender you are working with.
- Most hard money loans don’t have upfront fees compared to traditional loan options.
- There is less paperwork as well as less back and forth which makes it easier to get the deal closed.
Do I Qualify For A Hard Money Commercial Loan?
A traditional commercial loan has strict qualifications which makes it next to impossible for most individuals or corporations to receive funding. There are background checks, real estate history checks, credit checks, and they often times require a throurough business plan that must be perfect in order to pass. However, when you are working with a hard money lender, you are able to skip pass most of these issues. Since the funding is coming from a private real estate lender, you are able to skip through most of this drama to close the deal quicker.
Each private lender will have different requirements and qualifications they are looking for in order to start loaning out capital, but these qualifications are typically much less intensive compared to traditional loans. Hard money lenders attempt to help individuals and corporations around the world secure capital to begin working on their commercial project. To apply for a free loan quote, please fill out our form at the bottom of the page.
Other Types of Private Real Estate Loans
With years of experience working with hard money loans and private real estate lenders, our team has knowledge of a variety of different loan types. Below are a few of the most popular loans that we work with on a routine basis.
Apply For A Commercial Loan Quote
Fill out the form below for a free loan quote and to learn how our private lending network can help you with your next project.