Identifying Various Commercial Hard Money Loans

Identifying Various Commercial Hard Money Loans

Perhaps the most common type of commercial hard money loan is known as a bridge loan. Simply stated, this type of loan is for a short period of time to cover funding until permanent financing becomes available. When dealing with this type of commercial loan the credit worthiness. This falls in line with general hard money lending.

One example of the use of a bridge loan involves a boutique hotel in Coronado. After investing close to 6 million dollars in renovations, the note holder refused to extend the length of the loan and was in the process of foreclosure. Luckily, the hotel was saved through a bridge loan which kept the hotel afloat until long term financing became available. Their use of a Los Angeles hard money lender saved their operation.

Many organizations offer bridge loans with requirements similar to hard money lenders in the residential arena. The requirements are a much more lenient than tradition brokers. Often, bridge loans require little documentation, so income verification, and in certain instances appraisals, are often unnecessary.

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