Commercial Hard Money Lenders See New Demand Through 2015
Commercial real estate lending is opening up again and private money lenders, also called commercial hard money lenders, are leading the way. With the passage of the Basel III, which will regulate U.S. banks into the future, many U.S. banks are looking to comply with the new standards by 2015. This means that over the next two years, bank lending will tighten up, particularly in the area of commercial real estate lending.
The good news is that private money and hard money lenders are meeting the demand in commercial real estate lending. Bridge loan lenders, also called commercial hard money lenders, offer short-term “bridge” loans that replace bank financing. Requirements for private money loans are far fewer than requirements for a bank loan, and a bridge loan can fund much quicker than a bank loan.
Although commercial hard money lenders charge higher interest rates than bank lenders, their speed of funding and their lower income and credit requirements make the interest rate less important in some cases. Because commercial real estate lending is in such a high demand and banks aren’t readily lending, consider using commercial hard money lenders to finance your real estate transactions this year.
And make sure we are in your book of contacts! If you never had a commercial hard money loan before, take a look at our ‘Hard Money 101’ at this link and learn what it’s all about: https://privatemoneyutah.com/hard-money-101/