Commercial properties financed with hard money are increasingly becoming a viable option to that of institutional money. Some of the reasons for this include institutions wanting fully amortized payments and/or amortizing these payments over a shorter time frame than the traditional 30 years. Additionally, for acquisition of commercial property, the main concern with hard money lenders is the collateral value, not the debt service of the property, making the approval process more streamlined. Even a property that does not meet the required debt coverage for an institutional loan is a fundable loan with private money investors.
Raw land and construction are additional transaction types that are becoming more and more common in the hard money world. In a down real estate market, it can become very difficult to finance raw land and construction, whether horizontal construction or vertical. Hard money can help provide a solution, lending on raw land that institutional money is not terribly interested in. Additionally, construction projects are being thrown into the speculative venture category more and more often. Bank financing can be very tough to obtain, even for the most well qualified borrowers. Hard money is definitely more expensive than bank financing, but it is still much cheaper than a partner or a dead project. Although the market is very tight for land and construction transactions today, there is still money available if you have the right resources and a proper deal.
Find California hard money lenders, offering viable options in today's market for borrowers of all credit types, or learn more about loan programs and real estate mortgage news at http://www.aboutcaliforniahomeloans.com/blog/