Hard money commercial loans are a good option for many of today's borrowers. Many banks and institutions are putting greater restrictions on the commercial lending they will provide, and often times even the most well qualified borrower can have a tough time obtaining financing for their commercial property. If you are in this situation, you may want to look into a commercial hard money loan.
Commercial hard money loans come in many shapes and sizes. Depending on the investor, you will have different requirements. For most hard money loans, the main concern in making the loan is the loan to value. If the loan to value is good, you can typically get a loan funded. This is true even if your debt coverage ratio is not the 1.15 or better that many institutions are looking for these days.
This can be especially helpful if you are looking to refinance an existing commercial building that is under-performing. If you are looking to take cash out for tenant improvements to improve the debt coverage or attract more tenants, many times your property is not going to meet the debt coverage ratio required by a bank. With a commercial hard money loan, or even a bridge loan, you will find hard money lenders more willing to work with your situation.
Along the same lines, if you are looking to acquire a commercial property that is not perking, hard money commercial loans can offer money for that acquisition. Hard money also offers the flexibility to work with seller carry back situations, cross collateral opportunities, and other creative ways to put together financing that may be able to meet your needs.
If you are interested in exploring your options, please contact me. I can help with California hard money, and commercial hard money nationwide.