You may be new to the commercial investment property business or you may be a seasoned vet. Regardless of which category you fall under you need to check out commercial hard money lenders and see what they have to offer.
Commercial hard money lenders
are generally non-banking institutions i.e. private individuals or small groups that solely provide fast financing for such individuals as house flippers, developers and so on. Typically, most people that venture into the world of commercial real estate and investment properties are familiar with the term hard money. But, more than likely do not know exactly what a hard money loan is. This may sound strange, but the fact is unless you are in the business of flipping houses or a developer, hard money is a hard concept to follow.
In other words, you are not alone when asking the question just who exactly needs hard money? Moreover, how does hard money differ from standard financing? Well, the obvious answers are listed above. But, the in-depth answers are that hard money is for individuals who for a variety of reason cannot qualify or obtain conventional or rather standard loans/ financing and hard money differs from standard financing because there is simply less red tape.
All in all, this may sound like these particular individuals have bad credit or are just from a bank standpoint a bad investment, but the truth is this isn’t always the case. Nine times out of ten, the people that need hard money are those that need to move quickly on a property and often times need to borrow the full purchase price. Consequently, these people are often far from a “bad investment” as most commercial hard money lenders
require their borrowers to back up hard money with real assets i.e. the collateral and credit are often more than there. In reality, it is often the banks that simply cannot move at the required speed necessary to allow the borrower to make a profit.
The Benefits of Hard Money
The clear benefit of hard money loans is that they are readily available. In fact, if you are able to find a few reputable commercial hard money lenders
in your area, you can have the necessary financing in less than a couple of business days. Furthermore, due to the required turnaround time with hard money loans near perfect credit is simply not high on the list of borrower requirements and you are also not dealing with the standard processing team that comes with banks or conventional loans. Thus, this means you can get what you need when you need it without the hassle of dealing with a half a dozen people and jumping through a half a dozen hoops.
Commercial Hard Money Lenders can Offer a Helping Hand
Ultimately, dealing directly with your lender and having access to the money when you need it (within the timeframe you need it in) is what hard money is all about. Moreover, working with these particular niche lenders when you first start out means you can build your investment business much faster than you could without their assistance.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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.