Commercial property loads are business funding option for small and big business owners who wish to access to capital specifically for purchasing a commercial property or to renovate the existing one or doing both.
If you’re planning to deal, there are a lot of business real-estate loan options available by companies but finding the right one can determine how successful your business project turns out.
Hard money loans have become an excellent choice for business investors with non-traditional deals. Individuals and private loan companies in every city tend to offer several advantages over banks and other financial institutions. A hard money loan is a loan that you secure with real estate property.
Sound interesting? Read below why hard money loans are the best for commercial real estate and how it is reshaping the mortgage market?
Instant Property Loan Approval
You might aware about the application approval process of a standard bank loan or mortgage isn’t easy. It involves multiple page forms and other important documents. The lender takes a couple of weeks to respond or approve them and the property you were looking might be off the market by then. On the other hand, to save your time, applying for hard money commercial real estate loads is worthy than dealing with your other typical real estate lender.
If you’re living in the USA, Los Angeles Hard Money Loan Offices give you pre-approval within minutes of speaking to an available lender and your property will get funded within a fraction of time.
If a commercial office or building is in high demand, the investor with a hard money loan has a lot to offer. With faster approval, there are fewer opportunities to fail! Business owners can enjoy an advantage if a lender turns you down for a loan, it essentially kills the deal. Hard money loan providers can offer you quick financing when a bank pulls out a deal, they save it so that you can still buy the same property you were looking for.
Build long term relationships with the lender! Show a history of honoring the terms of the contract and paying your commercial real estate loan on time. The lender may be willing to approve a loan on a higher percentage of the purchase price, reduce the origination charges or reduce the amount of time it would take to funding the loan for you.
Help with Navigating Credit
When you apply for a loan from a bank or mortgage lender, your credit scores and income or turnover history plays the biggest role in the application approval process. Through hard money loan companies, lenders focus more on the property valuation rather than credit score and income. The real estate property becomes collateral for the load, in case if you don’t have the strong credit and income that banks require usually from business owners.
Not Lending Just the Money, But Knowledge As Well
Banks have no interest in what type of commercial property or office you are investing in and the deal proves to be profitable in the future or not doesn’t matter for them. But when it comes to hard money lenders they have thorough knowledge about the area in which you’re planning to buy the property and they make you aware of the same. It means you will be getting two things at a time- Free consulting and loan.
Partnership Lending Experts
Working with a hard money lender means you are partnering with someone who wants the property investment to work out just as much as you do. Many hard money companies lenders have years of experience in real estate industry thus they bring that expertise to the table throughout the process, including knowing the best how to structure the commercial loan so that it will get approved quickly and will work for you in the future.
An experienced property lender of your city knows the pros and cons of lending from various viewpoints can provide far more value than a standard bank or mortgage loan service provider who only does one type of loan (the program that their bank offers).
Hopefully, this blog post has armed you with enough knowledge and confidence to get hard money loans on your business property. The higher interest rates may seem scary at first for all of us, but several advantages of getting quick approval on loan funding and being able to obtain a loan when all banks have said ‘’NO’’ will more happiest moment.