When dealing with hard money commercial loans, it can be a little difficult to ascertain when is the best time or rather what scenario truly calls for these particular kinds of commercial loans. Well, the truth is there are approximately three scenarios where commercial hard money financing can benefit you the most.
Generally, commercial loans can help anyone interested in securing financing for a commercial venture. However, you want your financing to work for you not against you; therefore, it is important to know when your commercial financing can be a helping hand. With that being said, commercial hard money has always been a quick and virtually easy way to have access to capital. Due to this fact, you will see that it is perfect for providing expedited funding for commercial real estate investors.
For instance, if you, an investor, are looking to move quickly on a particular piece of commercial real estate than hard money is your answer. As you may already know, securing commercial hard money has become a very streamlined process. This is what makes it so attractive—the lack of red tape or need to get approval from several different channels before having access to your funding.
The second scenario in which this particular type of financing will benefit you the most is if you are a small business owner. Here, this can apply to either investing or financing a start-up, which are typically two instances where securing financing can be difficult due to the perceived high risks that are often associated with smaller businesses. In fact, it is due to this presumption that traditional lending avenues are less likely to work with small business owners. Thus, you can see how working with a hard money lender can turn your business dreams into a reality. What is more is if you are unable to meet the terms of your hard money commercial loan, typically the property will be used as your form of repayment.
The third and final scenario where you can truly count on hard money commercial financing, of course, is when you are an investor with not so great credit. It almost goes without saying that, banks and traditional lending institutions are not a fan of investors or borrowers who do not have outstanding credit. But, hard money financing allows you to overcome your low to less than desirable credit and still make your venture happen. Hard money allows you to overcome your credit by having less strict qualification and credit history requirements. Moreover, hard money allows you to move forward with your commercial project while simultaneously providing an opportunity to build back up your credit.
A Helping Hand
Ultimately, low credit, small business dreams, and speedy investment are all great reasons to look outside of your traditional lending options. Remember, hard money commercial financing is meant to help you succeed despite the odds, thus there really is no reason to be afraid to explore your hard money options or to move forward with your commercial plans.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.