Commercial Hard Money Loans Not Widely Understood

Confused about Commercial Hard Money Loans?

For commercial real estate investors who have always financed their properties at the bank, commercial hard money is not well understood. The requirements and pricing of commercial hard money loans is very different from bank loans. In fact, this is the reason that most commercial real estate investors don’t understand how commercial hard money loans work. Most of them have only ever gotten a bank loan in the past.

So how do commercial hard money loans differ from conventional financing? The requirements are the biggest difference between the two. For commercial hard money, it’s the information about the property itself that is the most important. Does the property produce income, or is it in good repair? For a bank, it’s the borrower’s credit and income that is the single biggest requirement. Most commercial hard money lenders will look at the borrower’s credit and income as secondary to the property.

Another way that commercial hard money loans differ from conventional financing is in the cost. A commercial hard money loan, also called a bridge loan, is more expensive than a bank loan. Interest rates and loan fees are higher. But for someone that isn’t eligible for bank financing, paying higher costs is better than not getting the financing at all.

If you’ve never used commercial hard money loans before, we invite you to visit our ‘Hard Money 101’ Blog found at this link:

2 thoughts on “Commercial Hard Money Loans Not Widely Understood

  1. Need funding for NPN in NV. This is a bulk SFR purchase of notes. Need 100% of the purchase price covered. Need the money for about a year and a half. If you don’t offer this, do you know a private money or hared money lender that loans nationally that does?

  2. Hello CL,
    We don’t do loans on bulk note purchases. I wish I knew someone to refer you to but I do not.
    Best of luck…

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Corey Curwick Dutton, MBA Park City, Utah

About the author

Corey Curwick Dutton, MBA Park City, Utah - 2005 MBA Graduate with 10 years experience in Business Management including International Management. Corey is a Private Money Lender and Loan Officer. In her spare time Corey enjoys writing on topics in the private money lending industry. She also enjoys hobbies such as mountain biking and skiing in the great outdoors of Utah.