50+ Lenders of Hard Money Business Loans
A lot of people call us and tell us they need a Commercial Hard Money Loan and the first question we have for them is, "Why?" We have come to the conclusion that most people do not really understand when the right time for hard money really is. They incorrectly think that hard money loans are the only way to accomplish getting financed.
Here are four reasons why you would want to pursue a Hard Money Business Loan situation:
- You have exhausted all other financial options – There may be other options for you. Let’s take a look at your commercial project and see if there is another way.
- You have a short-term project usually between 6 months – 3 years in length.
- The profit margin of your project is substantial and you need to seize an opportunity when it arises.
- You need a transaction lender rather than a relationship lender.
Here are some scenarios to expect from Hard Money Business Loans:
- Collateral: Mainly commercial real-estate, including raw land and development projects
- Interest Rate: Variable from 9% to 14% depending on collateral
- Amortization: Interest Only
- LTV: Up to 80% (usually 65% or below)
- Origination Fee: 1 to 4%
- Closing time: 5 Days to 1 Month
A highly experienced developer in New Jersey wanted to acquire a waterfront commercial office building. Despite his near-perfect credit, several banks had declined him for a conventional loan because of their conservative stance on development projects. By leveraging the developer’s other assets and his excellent track record, he was able to receive commercial financing for his acquisition through hard money loans. The lender saw great value in the real estate and was comfortable with other collateral that the developer had offered. The developer paid a higher interest rate, for a short-term, but was not concerned since he was able to get the loan approved and funded quickly. Lower long-term re-financing was possible once the project was stabilized.
Success Story - Purchase Of Chiropractic Business
Even when this business had a negative $200,000 net worth, Aggressive Lending Company was able to secure them the loan they needed to purchase this practice. Learn how we did it and view the financing terms here ».