Review Mortgage Lenders

hard money mortgage lenders

Hard Money Lending & Private Mortgage Lending- How it Works

Private Hard Money Lending explained. The first in a series of short videos about hard money investing, borrowing and brokering from Trent ...

What Is Your Best Loan Option for a Commercial Real Estate Investment?

There are conventional sources, such as banks, and non-conventional sources, typically private lenders that provide bridge (a.k.a. hard money) funding. A conventional source typically takes at least 90 days to fund and frequently longer, whereas private sources can fund in one week.

Commercial Real Estate Mortgages are used for a variety of reasons but, of course, the underlying reason for all of them is a borrower’s need for cash. Whether it be acquisition, renovation, development or just to free some cash up using the equity of the property, borrowers use commercial mortgages to make up for a shortfall in liquid assets.

Commercial real estate loans are typically made to business entities formed for the specific purpose of owning commercial real estate. Entity types include partnerships, corporations, funds, trusts, and real estate investment trusts (REITs).

Here are some of the typical commercial mortgage types:

Traditional commercial mortgages have loan terms that range anywhere from 3-20 years, with a balloon payment due at the end of the term. They usually amortize on a 30-year schedule, thus the need for a balloon payment at the end of the loan term. Rates for these loans generally start 50 to 150 bps higher than your typical residential mortgage for a standard 15-year self-liquidating mortgage. The shorter the term of the loan, generally the lower the rate. As with a standard residential mortgage, the borrowers/guarantors credit scores are required to be at a certain level to qualify for these loans.