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Will my deal qualify for Commercial Hard Money?
There are many different types of commercial hard money lending programs for businesses and investors. The following can be used as general guidelines for determining whether your deal would be appropriate for a hard money. Even if your deal doesn’t match exactly to these guidelines, feel free to apply anyway. My hard money team will let you know if your deal makes sense for one of our many hard money lenders:
- Loans are usually up to 65% to 75% Loan-to-value (LTV) based off the After-Repaired-Value (ARV);
- 100% of acquisition/construction can be financed no problem;
- Both residential and commercial properties are OK;
- Low credit scores? No income? That’s OK too;
- We welcome foreclosure/bank REO properties;
- Interest only and “no payment” options are available;
- All loans must be for business or investment purposes (sorry, no primary residences at this time);
- We can handle cash-out refinances of land or existing structures;
Does loan amount size matter in commercial hard money lending?
Yes. Many lenders will not finance if the loan amount falls below $10,000,000.00 and some minimum requirement is $3,000,000.00. Well good news! We have commercial hard money loan amount products that go down to $250,000.00 dollars.
What do underwriters want to know in order to approve the loan?
The underwriter wants to know how you are going to make the monthly payment and how you are going to pay off the loan also known as the “exit strategy”. I suggest you have two ways you can pay off your loan to make the loan appealing to the underwriter.
What are the Rates?
Rates typically range from 8.5% to 12%. The rate will depend on:
- Property type
- Term Length of the loan
- Your credit
- Loan to value
- Loan amount
How long are the terms of the loan?
The note terms are when the loan will be due in either 3 months, 6 months, 12 months, 24 months or 36 months.
How long does it take close a commercial hard money loan?
Some of our programs do not require a formal appraisal. If the loan does not require a formal apprasal, we rely on our internal appraisers to determine the value. If the loan does require an appraisal, we might be able to accept an old appraisal or a new appraisal will be ordered. We can close your commercial hard money loan in 10 to 30 days.
Commercial Capital LTD Difference
Although we are based out of Texas, we can assist anyone in the United States. If you have any questions about your deal or hard money in general, feel free to call Commercial Capital LTD today at (512) 650-8630 or 512-354-5949. You may also click here to fill out the form to get started today.