Commercial Hard Money Bridge Loans
Hill Creek Commercial Capital provides Real-estate Investors with short bridge loans nationwide and can close in 2 weeks. Financing commercial and some residential properties from loan amounts up to $50 Million
Purchases / Refinance / Construction / Heavy Rehab
- Fast Closing
- Lite Documentation
- Close in less than 2 weeks
- Up to $50 Million
Commercial Hard Money Loan Terms
LOAN SIZE | Up to $50 Million |
TERM | Up to 5 years |
LOAN-TO-VALUE | 70% |
Interest Rate | 9% to 12% |
POINTS | 2 to 5 points |
MINIMUM YIELD | 6 months |
CLOSING TIME | In as little as 5 days |
GEOGRAPHY | Nationwide |
MINIMUM CREDIT SCORE | None |
PROPERTY TYPES | Multifamily, office, retail, industrial, & warehouse and more |
The Complete Guide for Commercial Hard Money Loans
“Hard money loans” often appear in real estate transactions, primarily commercial ventures. These loans are unique in the lending landscape, relying on real property as collateral rather than the borrower’s creditworthiness. These loans are an essential financial tool for real estate investors, from experienced investors to novice investors. This article will explore the dynamics of hard money loans, including how they work, their benefits, and potential pitfalls.
Deciphering the Mechanics of Commercial Hard Money Loans
The Core Functionality
Hard money loans are based on a simple concept: they are backed by tangible assets, primarily real estate properties. In contrast to traditional mortgages, where the borrower’s creditworthiness is the main factor, hard money loans revolve around the assessed value of the collateral property. This fundamental difference is at the heart of hard money lending, providing a lifeline to individuals and entities that conventional banking institutions often overlook.
The Speed Factor
One of the main advantages of hard money loans is their speed. Hill Creek Commercial Capital is a well-known player in this field and is proud of its fast decision-making process, which avoids the bureaucratic obstacles typical of traditional lenders. With funding timelines often compressed to as little as ten business days, hard money loans symbolize agility in a usually slow-moving industry.
The Cost Analysis
However, this agility comes at a cost—literally. Hard money loans typically entail higher interest rates compared to their conventional counterparts. This premium, often between 10% and 18%, underscores the risk lenders undertake in this domain. Yet, for investors eyeing short-term ventures or property flippers seeking rapid turnarounds, the allure of quick capital often outweighs the financial burden imposed by elevated interest rates.
Evaluating the Pros and Cons of Commercial Hard Money Loans
The Advantages
Pros:
Speedy Approval: The streamlined approval process of hard money loans translates into faster access to capital for time-sensitive projects.
Flexible Terms: Unlike rigid bank loan structures, hard money loans offer room for negotiation between the lender and borrower, fostering customized solutions tailored to individual needs.
Asset-Based: By prioritizing collateral over credit history, hard money lenders extend opportunities to borrowers with less-than-stellar financial profiles, giving more investors access to capital.
The Drawbacks
Cons:
Elevated Costs: The tradeoff for expedited funding often manifests in higher interest rates and fees, amplifying borrowers’ financial burden.
Limited Loan-to-Value: Hard money loans typically feature lower loan-to-value (LTV) ratios than traditional mortgages.
Regulatory Constraints: Regulatory oversight and compliance rules may preclude hard money lenders from financing owner-occupied residences, constraining the scope of potential borrowers.
What Is A Commercial Hard Money Bridge Loan?
A Commercial Bridge Loan is designed to bridge the gap between purchase and stabilization, providing a lifeline to enterprises poised for growth and transformation. Whether you need to streamline your operations, renovate your property, or attract new tenants, a bridge loan can help you achieve your goals.
Commercial Bridge Loans for Acquisitions:
Bridge loans are a useful option as a short-term purchase loan for investors who are interested in revitalizing or stabilizing a property. This option can close in a matter of days, rather than weeks. Typically, the loan term is between 12 to 24 months, so it is important to have an exit strategy in place before opting for a bridge loan. Hill Creek Commercial Capital offers unwavering support to investors, providing access to expedited funding and flexible terms, which can help them achieve their real estate aspirations.
Commercial Bridge Loans for Refinance:
Refinancing can be complex, especially for those facing credit difficulties or owning non-qualified properties. In such situations, bridge loans can help obtain short-term liquidity. Hill Creek Commercial Capital provides bridge loans, focusing on real estate property equity and fast underwriting. We are committed to making the refinancing journey as smooth as possible for our clients.
Conclusion
In the ever-evolving realm of commercial real estate, hard money loans are a testament to innovation and adaptability. Whether fueling property acquisitions, facilitating renovations, or bridging financing gaps, these financial instruments wield unparalleled potency in the hands of the right investors and entrepreneurs. As exemplified by Hill Creek Commercial Capital, the journey of hard money lending transcends mere transactions, embodying a commitment to empowerment and prosperity in the commercial landscape.
