The “5 Cs” of Commercial Hard Money Loans and Your Business

Get the Best Commercial Hard Money Loan Rate You Qualify ForSuccessful businesses are those that are managed most effectively which also means, balancing the “5 Cs”- Cash flow, Capital, Credibility, Customers, and Credit. Let’s take a look at these factors and how they apply to the success of your business, including your ability to obtain commercial hard money loans.

Read the rest of The “5 Cs” of Commercial Hard Money Loans and Your Business

How to Secure a Commercial Bridge Loan

How to Secure a Commercial Bridge LoanThe first step toward securing a commercial bridge loan is to make sure that you have a deal that’s profitable for your Company and your prospective commercial real estate lender.  As a general guideline for standing (existing) property  purchase financing, you should be “all-in” (purchase price + renovation/improvement costs) is somewhere south of 70% of the After Repair Value or ARV.  The lower that percentage, the stronger the deal for you and your lender. In fact, since bridge loans are more expensive in terms of higher interest rates, we like our Clients to be all-in @ less than 60% of ARV just to have an extra profitability contingency cushion.  That way, we’re all covered just in case…

Read the rest of How to Secure a Commercial Bridge Loan

How to Use Commercial Bridge Loans

Commerical Bridge LoansSecuring a commercial bridge loan may be just the thing for your business whether you’re in between anticipated incoming funds or you need to take the success of your company higher faster than your bank is capable of. Bridge loans usually have higher interest rates than conventional commercial real estate loans, but have lower rates than commercial hard money loans. Bridge loans are inherently short-term, so they typically have a 6-month to 3-year time frame within which they need to be paid back.

Read the rest of How to Use Commercial Bridge Loans

Finding a Good Commercial Bridge Loan – Answers to 3 Common Questions

Commercial Bridge LoansAs a business owner, you are certainly not alone in thinking that your Company may need alternate forms of financing to help you maintain or expand your business. Many companies are in the same position while they try to obtain a loan from banks or other financial institutions.  A commercial bridge loan may be perfect for “bridging” the gap in your finances while you’re in the process of obtaining conventional permanent financing. Here are 3 commonly asked questions about commercial bridge loans and whether or not they can help you achieve your business objectives.

1. What are commercial bridge loans?

A commercial bridge loan is a short-term loan that is used to bridge the gap between various financial expectations–to get your company from point A to B within the most time-efficient and cost effective manner.

2. What is the difference between a commercial bridge loan and commercial hard money loan?

Both commercial hard money loans and bridge loans both use the property as a collateral asset, but the main difference between the two is that hard money loans are made only by private investors. This kind of loan typically has a higher interest rate than a bridge loan would and generally are used in cases where a company may be facing impending financial problems like balloon payments coming due or in cases where Principal Borrowers require extreme speed of funding like with auction purchases–where the opportunity cost of missing out on a great deal far exceeds high but short-term hard money loan interest rates.

3. When should I not get a commercial bridge loan?

When your Company requires interim financing on a property while you seek long-term commercial real estate financing, you might consider a bridge loan. There are large risks in this kind of investment but also high rewards associated as well. But you should seek alternative financing if you can’t find long-term financing or pay the extra cost of interest on the loan. However…

When prospective Clients call us seeking a commercial bridge loan, the first question we usually ask is “have you already approached your local bank?” We ask this because our job begins when your bank either says “no” for various reasons or they can’t fund you within your tight time-frame.  If you qualify for bank financing and you have plenty of time to get your project funded, you probably don’t need a bridge loan.

Bridge loans are a great way to practically guarantee your ability to purchase a property. Your battle isn’t over with a bridge loan and you still want to eventually obtain long-term, traditional financing as soon as it’s feasible, but whether you need to expand your Company’s business or survive a current crisis, a commercial bridge loan can help you weather the storm and achieve your business objectives in a timely and cost-effective manner. So, when your bank won’t lend you the money or they can’t process your loan fast enough, just call us and we’ll help you obtain the best commercial bridge loan you qualify for as fast as humanly possible. Deal?

We hope you’ve found this information useful.  Feel free to share your thoughts, questions, and concerns in the Comment / Reply area below. Thanks & see you @ the Closing Table!

What is a Commercial Bridge Loan?

How to Get a Commercial Bridge LoanA commercial bridge loan is a short-term loan that is used to bridge the gap between various financial expectations.  Typical transactions have an urgent time-frame to close, a very strong value proposition, and a clear-cut exit strategy within 6 to 36 months, often with 1 or 2-year extensions available for extra fees. 

In order to compensate for the higher level of risk and often extreme speed of loan execution with relatively low documentation requirements, commercial bridge loans are generally considerably more expensive than conventional loans in terms of higher interest rates and points.  As additional compensation, commercial bridge lenders also mitigate risks by having lower loan-to-value ratio requirements as well as requiring cross-collateralization in certain circumstances.

Read the rest of What is a Commercial Bridge Loan?

Are Commercial Real Estate Loans on the Verge of Imploding?

There's No Doom & Gloom at Commercial Real Estate Loans USA Is the Commercial Real Estate Market a Ticking Time Bomb?

Commercial real estate loans generally have provisions which require borrowers to pay off their loans or refinance them by a certain date which typically is within 5 or 10 years of initial funds disbursement. By 2013, $1.3 trillion in real estate loans will be due from property borrows such as for offices, hotel, shopping centers, multifamily homes, self-storage and industrial properties. Nearly half of the maturing multifamily and commercial debt will not qualify for refinancing according to Deutsche Bank, which means that two-thirds of CMBS debt will no longer be qualified or eligible to refinance. This will result in losses of over $50 billion dollars in securitized commercial loans and $200 billion dollars on commercial real estate loans, which will, again, effects commercial real estate financing.

Read the rest of Are Commercial Real Estate Loans on the Verge of Imploding?

What You Really Need to Know About Commercial Mortgage Loans

Commercial mortgage loans, also known as commercial real estate loans, include funding for companies that seek to purchase commercial real estate. They aren’t the same as commercial loans because commercial mortgages are granted to companies that will make use of the property just for commercial reasons.

Commercial mortgages might have fixed or adjustable rates, that is what determines the category into which they fall.

Commercial mortgage lenders are only going to grant commercial mortgage loans to customers who will guarantee that property is going to be used solely for commercial purposes.  Investors looking to acquire property for other reasons like lodging or personal residence are encouraged to seek traditional commercial loans.

Read the rest of What You Really Need to Know About Commercial Mortgage Loans

What in the World are Commercial Bridge Loans and Why in the World Would I Ever Need One?

What in the World are Commercial Bridge Loans & Why do I Need One?As the name implies, commercial bridge loans are short-term commercial loans collateralized by real estate that serve as a bridge for you as the borrower that gets you to your next commercial property deal.  This type of commercial real estate financing permits you to alleviate  liquidity constraints and take full advantage of time-sensitive opportunities with speed and efficiency.

Read the rest of What in the World are Commercial Bridge Loans and Why in the World Would I Ever Need One?

Fed Up With Getting Your Commercial Real Estate Mortgage Applications Rejected? Time To Get In The Driver’s Seat!

Have you had it with getting turned down for commercial real estate mortgage requests? From the outset of this credit crunch we find ourselves in, hard working business people just like you And me have been wishing for a simpler, more reliable means to get our commercial real estate ventures financed. Now is just the right time for you to get in the driver’s seat, take control of the commercial mortgage finance process, and get your projects funded with eye-popping speed and efficiency.

This is an effective, efficient, and extremely powerful commercial real estate finance portal that empowers you to concurrently submit your commercial real estate loan requests to approximately 750 hungry commercial real estate loan officers. After you submit your 4-minute mini-app, this system eliminates all of the commercial lenders which it deems inappropriate lenders (such as: those that don’t operate in your state or other geographical region where your the real estate that you intend to finance happens to be). Then the system gives you a list of roughly 30 of the most suitable commercial mortgage lenders, several of which should be optimal for the commercial mortgage loan that you are looking to get.

Read the rest of Fed Up With Getting Your Commercial Real Estate Mortgage Applications Rejected? Time To Get In The Driver’s Seat!

Posted in Commercial Real Estate Mortgages by Charles Emery. No Comments

Commercial Hard Money Loans: A Survival Tactic

A commercial hard money loan must only be thought of as a solution right after you have exhausted all other sources and have come towards the conclusion that you just will not qualify for a conventional loan. The alternative, even though difficult for a lot of borrowers, is normally uncomplicated. Either lose your commercial property or accept the terms supplied by the hard money lender.

Read the rest of Commercial Hard Money Loans: A Survival Tactic

Commercial Hard Money Loan Providers

Commercial hard money loan providers are really companies or private lenders who are willing to extend credit to commercial borrowers on a relatively short-term basis with stricter terms including higher interest rates to compensate for the risk involved. Frequently money-making income financial loans are now being released having a greater rate of interest compared to traditional income financial loans. Commercial hard money loans bear some similarity to commercial bridge loans or commercial bridge financing.

Read the rest of Commercial Hard Money Loan Providers

Posted in Commercial Hard Money Loans by Charles Emery. No Comments

Commercial Hard Money Loan Situations: Why and When You’d Need It

A commercial hard money loan is really an unconventional commercial real estate loan that traditional banks just don’t provide us with. This kind of commercial financing has been used for more than half a century. Such hard money loans will often have an initial lien on commercial property. When your hard money loan includes a secondary lien, it’s called mezzanine financing.

Read the rest of Commercial Hard Money Loan Situations: Why and When You’d Need It

Posted in Commercial Hard Money Loans by Charles Emery. No Comments

Commercial Hard Money Loans

Commercial hard money loans really are a specific kind of resource-based loan. With this type of commercial loan, a borrower receives funds which are collateralized by real commercial property. The inherent risk of commercial hard money loans is compensated for via higher interest rates versus conventional commercial real estate loans. This kind of loan isn’t, when, released with a commercial bank or any other deposit institution.

Read the rest of Commercial Hard Money Loans