It can be easy to lose focus or drive in a commercial project when you suddenly find that you’re having trouble finding the right funds to complete it. If you’re turned down by a bank or traditional lender, however, you do still have options. Turning to a hard money broker is one option worth taking a look at.
A good hard money broker is someone who can help you when you can’t get a traditional loan from a lender. If you’re turned down for a loan, they could be the one ally you have available to you. Those using hard money commercial loans could be anyone, but some of the most common people who turn to these loans include those who face situations such as:
• Those who have too much debt to income ratio to secure another loan
• Anyone with credit history issues or a financial past that makes securing a loan harder
• Developers who need to finish construction projects to qualify for a traditional loan
• Those who find special deals that won’t last long and need approval fast
• Those finishing a construction project prior to making a major sale of the property
With a hard money commercial loan, credit checks aren’t even used all of the time. Instead of basing your loan on your debt to income or your credit score, lenders offer loans based on your equity and your assets. You will use property to secure your loan. If the loan is unpaid, the lender takes over the property.
Since there is much more risk involved for the lender, it’s important to note that you can expect higher interest rates and terms that are more closely aligned with protecting the lender. These loans are usually short term loans that aren’t kept for long – they’re utilized to help get a borrower the funding they need to move their project forwards.
For investors, investing in hard money commercial loans has become a tremendous opportunity that can net major returns – as high as double digits at times. In other words, no matter if you have money that you are looking to invest or need money in order to get your project finished, hard money loans are a vital part of the financial lending landscape.
If you’re considering securing or investing in hard money loans, you aren’t alone. They’re a viable opportunity that deserve more attention.
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