COMMERCIAL REAL ESTATE LOANS
Loan amounts available from $50,000 - $50,000,000
5 to 30 year terms available
Competitive market rates
Up to 85% LTV
Minimum to no-doc loans available
Servicing many different industries
Small to large size projects
New land and construction development
Credit score minimum 620
CRE Loans advantages
Mobile home park
Common uses for our commercial real estate loans
Commercial Real Estate Loans
Commercial real estate loans are like mortgages for businesses Imagine you want to buy a property for your business, whether it’s an office building, a retail space, or an apartment complex. Chances are, you’ll need a substantial amount of money to make this purchase. That’s where commercial real estate loans come in. They’re loans specifically designed to help businesses buy, develop, or refinance properties meant for business use. Just like a regular mortgage, you’ll agree to pay back the loan over a set period. The purchased property serves as collateral, meaning if your business cant repay the loan, the lender could take ownership of the property to recover their money. Commercial real estate loans can be used for various purposes, such as buying a new building, renovating existing space, or investing in real estate ventures. They are essential for businesses looking to expand or establish their physical presence and provide the financial means to do so.
Hard Money Loans
A commercial hard money loan is a business loan secured by real property and is usually considered higher risk and with higher costs.
Hard money lenders are generally private investors or companies, not banks. They do not function with the same regulations as typical loan institutions, meaning they are free to make their own rules about lending. It’s possible to be turned down for a mortgage loan from a traditional lending institution but get approved for a hard money loan. That’s because hard-money lenders are primarily concerned with the value of the collateral used to secure the loan. Should you default on the loan, they will access the property.
Hard money loans are a specific type of loan provided by private individuals or investors, rather than traditional banks or financial institutions. In simple terms:
1. Private Lenders – Hard money loans come from individuals or groups with significant capital to invest. These lenders are not bound by the same regulations as banks, so they can be more flexible in their lending criteria
2. Asset-Based Loans– Unlike traditional loans, hard money loans are secured by the value of a property or asset. The property itself acts as collateral. Because of this, these loans are often used in real estate transactions
3. Quick Turnaround – Hard money loans are known for their fast approval and funding process. Traditional bank loans can take weeks or months to process, but hard money loans can be approved and funded in a matter of days
4. Higher Interest Rates – One significant characteristic of hard money loans is that they usually come with higher interest rates compared to traditional loans. This is because they involve higher risks for the lender, as they often lend to borrowers who might not qualify for bank loans due to poor credit or other financial issues
5. Shorter Terms – Hard money loans typically have shorter loan terms, often ranging from a few months to a few years. Borrowers are expected to repay the loan in a relatively short timeframe
6. Use Cases – Real estate investors and house flippers often use hard money loans because they can secure funds quickly to purchase a property, make necessary improvements, and then either sell the property for a profit or refinance it with a traditional mortgage.
In summary, hard money loans are quick, asset-based loans provided by private lenders at higher interest rates. They are valuable for individuals and businesses needing rapid access to funds, especially in real estate transactions where timing can be crucial.