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30 Year Fixed Hard Money Loans for Commercial Property

By
Mortgage and Lending with All California Lending BRE# 01458390

30 year fixed hard money loans for commercial properties can provide a number of benefits for investors and business owners. These loans, which are typically provided by private lenders and secured by real estate, can offer a more flexible and cost-effective alternative to traditional bank loans.

One of the biggest benefits of the 30 year fixed hard money loans for commercial properties that we can assist with is that they do not require minimum debt service coverage ratio (DSCR) numbers at lower loan to value ratios. DSCR is a ratio used by banks and other financial institutions to assess a borrower's ability to repay a loan. A high DSCR is generally required for traditional bank loans, which can make it difficult for some borrowers to qualify. With our 30 year fixed hard money loan, the lender is primarily concerned with the collateral (the commercial property) and not the borrower's creditworthiness or DSCR numbers.  We can even help finance vacant properties under this program!

Another benefit of 30 year fixed hard money loans for commercial properties is that they do not require personal income documentation. Banks and other financial institutions typically require extensive documentation of the borrower's income and financial situation in order to qualify for a loan. This can be time-consuming and complicated for borrowers, and may even be a barrier for some. With a 30 year fixed hard money loan, the lender is primarily concerned with the value of the commercial property and not the borrower's income.

One more benefit of 30 year fixed hard money loans for commercial properties is that they are true 30 year fixed programs. Most commercial bank loans are fixed for only 5 years, maybe 7 or 10, which can create uncertainty and financial risk for the borrower. With a California 30 year fixed hard money commercial loan, the interest rate and monthly payments are fixed for the life of the loan, providing long-term stability and predictability for the borrower.

Additionally, 30 year fixed hard money loans for commercial properties are often more lenient in terms of credit requirements. Traditional banks and financial institutions often have strict credit requirements, making it difficult for borrowers with less than perfect credit to obtain a loan. Private hard money lenders, on the other hand, are more focused on the collateral (the commercial property) than the creditworthiness of the borrower. This can make it easier for borrowers with less than perfect credit to obtain the funding they need.

Furthermore, 30 year fixed hard money loans for commercial properties in California can also be quicker to obtain than traditional bank loans. Traditional bank loans can take weeks or even months to be approved and funded, while private hard money loans can be approved and funded in just a few days. This can be especially beneficial for borrowers who need to quickly access cash for a business opportunity or real estate investment.

It's also important to note that CA 30 year fixed hard money loans for commercial properties typically come with higher interest rates than traditional bank loans. This is because the private lender is taking on a higher level of risk by lending money without the same level of regulations and compliance requirements. As a result, borrowers should expect to pay higher interest rates on a 30 year fixed hard money loan.  With our 30 year fixed hard money loans, however, there is an option to buy down the rate.  Tyipcally speaking, buying down the rate makes a lot of sense if the intent is to hold the loan for more than 3 years.  With the availability of rate buy downs, obtaining a 30 year fixed rate that is comparable to bank rates is not out of the question.

In conclusion, 30 year fixed hard money loans for commercial properties in California can provide a number of benefits for investors and business owners. These loans do not require minimum debt service coverage ratio numbers, do not require personal income documentation, offer a true 30 year fixed program and often more lenient in terms of credit requirements. Additionally, they can also be quicker to obtain than traditional bank loans. To learn more, or to discuss your specific scenario, please call us today!

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

 

Hi,

Welcome to the Rain. Enjoyed your blog page, and I added you as a friend. I would love the follow back. Bill

Mar 20, 2023 02:13 PM