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Commercial Hard Money Loans: A Faster Path to Financing

CEO Khai Intela
When it comes to securing financing for commercial investments, traditional loans from banks can be a lengthy and cumbersome process. But what if there was a faster and more flexible alternative? Enter commercial hard money...

commercial hard money lender

When it comes to securing financing for commercial investments, traditional loans from banks can be a lengthy and cumbersome process. But what if there was a faster and more flexible alternative? Enter commercial hard money loans. In this article, we'll explore what these loans are, how they differ from bank loans, and when they can be the right choice for borrowers.

What is Commercial Hard Money Lending?

Commercial hard money loans are a type of financing where underwriting decisions are primarily based on the borrower's "hard assets," which are the real estate assets used as collateral. Unlike traditional bank loans that heavily rely on credit scores and financials, commercial hard money loans focus on the value of the commercial property itself. This allows private lenders to fund transactions that may not fit within the strict guidelines of traditional lenders.

At Fairview, we take pride in being a direct lender, which means we use our own funds and underwrite in-house without any upfront fees for due diligence. This unique approach allows us to provide honest answers quickly, saving borrowers thousands of dollars in out-of-pocket expenses typically associated with commercial loans.

How is Commercial Hard Money different from a bank loan?

Let's take a closer look at the key differences between commercial hard money loans and conventional bank loans:

Loan Characteristic Bank Financing Fairview Commercial Lending
Basis for loan approval Income, credit score, financials Real estate assets
Minimum FICO scores Typically 700+ None
Required documentation Significant Minimal on the property
Upfront fees Inspections, appraisals, etc. No upfront fees
Loan Committee Required We make the decisions directly
Loan Money Received 2-3 months Less than 10 days

As you can see, commercial hard money loans offer a streamlined and more efficient lending process. With no upfront fees and a faster timeline for receiving funds, borrowers can seize time-sensitive opportunities and bridge the financing gap between transactions.

When is a Commercial Hard Money loan appropriate?

Commercial hard money loans can be the right choice in various situations. Here are a few scenarios when this alternative financing option might be appropriate:

  • When you need a loan quickly and can't wait for the lengthy bank approval process.
  • When you require a short-term "bridge loan" to cover the gap between transactions.
  • When you don't qualify for traditional bank financing due to income, tax returns, or unique property circumstances.
  • If you are a small business owner aiming to minimize taxable revenue by showing various expenses.
  • When your credit is impaired or your property has liens, judgments, or unpaid bills that need to be resolved.
  • If you need working capital for your business or a loan without extensive documentation requirements.
  • When your property is occupied by your business, and your financials don't tell the full story.
  • If you are a foreign national without an established credit history.
  • When you need a complex loan with multiple pieces of collateral.
  • If you require a creative solution to a loan that doesn't fit the criteria of other lenders.

Additional Resources for Commercial Hard Money Loans

For more information on commercial hard money loans and Fairview Commercial Lending, check out these additional resources:

At Fairview Commercial Lending, we are a recognized private hard money lender with an A+ rating from the Better Business Bureau. Trust us to provide the financing solution you need, quickly and efficiently.

Remember, when it comes to commercial hard money loans, Fairview has got you covered. Contact us today to discuss your financing needs and explore the possibilities.

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