Commercial property financing can be a tricky matter, especially for real estate investors buying properties that are partially or completely vacant or otherwise in a distressed state. We offer hard money for commercial properties in California specifically for this purpose!
Typically speaking the banks are going to want a commercial property to have a DCR of 1.2 - 1.25. For many real estate investors looking to purchase distressed properties this is not realistic. Distressed commercial property is typically not going to cover these types of debt coverage ratios, that is why they are distressed! Enter the hard money options.
Hard money lenders are equity driven, and will lend based on a loan to value rather than a minimum debt coverage ratio. Going a step further, bridge loans are specifically structured as short term solutions to problem situations, so there is financing for distressed commercial properties, for a price!
As an alternative, we can offer longer term, lower rate financing than you typically are going to find on a traditional hard money bridge program. We have a few programs for commercial properties that blend the lower threshhold underwriting criteria of hard money loans with the single digit rate pricing of bank loans. These solutions will not fit every commercial property, but often times they can be quite attractive. With terms up to 10 years (typically structured as a 30 year amortization period, due in 10 years), they can even be an alternative to the more traditional short term hard money band aids many are accustomed to.
If you are in need of a hard money loan for commercial properties in California, give us a call today to discuss the options we can provide. We have a variety of programs, and are flexible with our loan to value guidelines. Visit us online to learn more about our hard money commercial loans, or call us directly at 877 462 3422.
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