Lessons learned from hard money lender and SBA lender

Real Estate Agent


The lessons that I recently learned from the deals i have are commercial hard lenders also set high standards. They require borrowers to show enough income to cover for personal and business expenses. The cold fact is  '"hard money is not dumb money" applied strongly in commercial lending. They speculate details shown on the profit and loss statement and the personal tax return. Special use prpperty has a hard time finding funding because a lot of banks and their investors focus on properties in the metro area. 

Almost all lenders want to be in first position. If you have a client who still owe money on the land and needed construction loan, the bank will want to lend money for the remaining balance of the land loan and the construction loan.

SBA loan's prime rate recently dropped from 8.25 to 7.75. This is best time to apply for an SBA loan 

Comments (2)

Kevin McLaughlin
S&P Mortgage (Alumni) - Binghamton, NY
You are right about a lot of things.  I am currently working with one of my commercial customers.  The loan size is large, and the lender wants to see 6 mos reserves.  It's only a refi.  If he had the money, he wouldn't be looking for a loan.  I work with several lenders who specialie in special use and difficult properties.  Let me know if I can be of help.
Oct 10, 2007 04:33 PM


I have a client who is looking for a construction loan to build a greenhouse. Do you lend to nursery in residential rural area ? Have you closed such deals before ?


Oct 10, 2007 04:43 PM