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   COMMERCIAL HARD MONEY LENDERS

Six Tips for Selecting a Good Commercial Hard Money Lender L1:B1


paperfree Aditi Bansal 29:14
Published on Sunday, September 17, 2017

Hard money loans are usually used to fund transactions when a quick turnaround is required such as flip and fix purchase. In such a situation, a quick turnaround is possible with hard money lenders. Your loan can be approved and closed in as little as 72 hours

tags  #Commercial hard money lender  #Loan to Loan Ratio #Hard Money Loans

 

Hard money loans are usually used to fund transactions when a quick turnaround is required such as flip and fix purchase. Conventional bank loans are generally used in cases where the property will be held for an extended period of time. In such a situation, a quick turnaround is possible with hard money lenders. Your loan can be approved and closed in as little as 72 hours.

Many hard money lenders are more than willing to finance the purchase of both residential and commercial properties. However, they evade loans relating to owner occupied residence because of more transaction regulations. Commercial hard money lenders offer loans  for single family homes at a fixed rate. The interest on the hard money loan differs by borrower’s specific conditions and by the commercial money lenders. Interest rates begin at 10% and rise to the mid-teens.

There are many commercial hard money lenders in the market today. Therefore you should be careful while choosing the right one. Here are some tips to choose the right commercial hard money lenders.

1) Pick a firm that focuses on Hard Money Lending

The service and compliance needs for hard money loans are usually complex and require the expertise of devoted commercial hard money lending professional. Professional commercial hard money lenders know how to structure loans so as to facilitate a worthy result for all the involved parties.

2) Emphasize your Search Locally

You will need to find commercial hard money lenders locally because they want to inspect the property that will protect the loan in-person. Local Commercial hard money lenders are more flexible than lenders that operate nationwide.

3) Insist on High Unit of Transparency

The loan data should be accessed by all the involved parties during the original process. Therefore, commercial hard money lenders should follow to printed loan program rules. Some lenders tout teaser rates that are impossible in real lending circumstances.

4) Check for Licensing

Some commercial hard money lenders are licensed to work in certain states as licensed by their state Department of Real Estate. A good commercial money lender should be registered with the Nationwide Mortgage Licensing System and Registry. You should also check if the lender has a valid Real Estate Broker License.

5) Rank your Hard Money Needs

Commercial hard money lenders specialize in different properties and have different policies. It is, therefore, advisable that you present all your requirements, for instance, the address of the property, the purchase price of the property and renovation budget among others.

6) Know the Implication of Loan- to- Loan Ratio

Commercial hard money lenders use the current value of the property as collateral for the loan. Commercial hard money lenders usually take a more conventional method to assessment than standard evaluation method that is used by banks. The maximum hard money loan a lender can offer you is 70% of the home’s value.

Commercial hard money lenders vary from one to another in their loan-to-loan value principles, minimum and maximum loan amount, the type of property they finance, the geographic region they serve, and the level of service they offer. The best way to start finding good commercial hard money lenders is to search for recommendations from local mortgage providers and realtors. You can also ask for the contribution from local real estate investor groups.



This page with a focus on Commercial hard money lender, Loan to Loan Ratio was shared by Aditi Bansal.

 
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