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Hard Money Commercial Loans Defined – Winston Rowe & Associates
A hard money commercial loan is an advance for a commercial venture for which conventional funding is not available. In other words, it is money that is difficult to get elsewhere.
By: Staff Writer
Winston Rowe & Associates, a national firm that provides hard money commercial real estate loans. They are a unique type of hard money company; they do not charge upfront fees.
Prospective clients with questions concerning their commercial real estate hard money financing options can contact Winston Rowe & Associates at 248-246-2243 or visit them on line at http://www.winstonrowe.com
Hard Money Overview:
A hard money commercial loan is an advance for a commercial venture for which conventional funding is not available. In other words, it is money that is difficult to get elsewhere. The purposes for which such loans can be obtained include investments, property acquisitions, construction, business and industry, refinancing and a lot of others.
Suitable collateral is required for obtaining a hard money commercial loan. Third party appraisal on the collateral may not be necessary because the financier are experienced enough to assess the value. The loan to value (LTV) ratios is normally up to 65% but some lenders do exceed this. Even second liens are possible if sufficient equity is still available.
There are short term (six months to three years) loans and loans for longer terms, and also unsecured business loans. The interest rates vary. Currently, a hard money commercial loan could be possible in an interest band of 10% to18%. It could be a floating rate or a fixed rate. Some lenders offer the option of 'interest lock' for short periods. This can be beneficially used if there is the expectation of rates going up. Sometimes the funds are utilized as a bridging loan while waiting for a traditional loan. Certain lenders impose a pre-payment penalty if the loan is repaid ahead of the agreed schedule.
The lenders can be approached directly online or through brokers. In case, shopping around and comparing the rates and term would be prudent. The main consideration in taking a hard money commercial loan is whether it would generate enough money to comfortably service the borrowing.
In addition to private money solutions, Winston Rowe & Associates offers the best in traditional financing programs. When you call them with a loan scenario, they quickly assess what type of financing is appropriate for your situation. Then utilize their direct access to the most aggressive investor sources in the world to create a customized financing solution for clients.
Winston Rowe & Associates also has an excellent knowledge based free investor resource for commercial real estate investing, valuation and analysis located at:
Winston Rowe & Associates
31408 Harper Ave
Saint Clair Shores MI 48082
Winston Rowe & Associates has no upfront fee commercial real estate loans in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming
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In today’s banking climate many commercial real estate owners have been approached by their current lender to discount their current commercial real estate mortgage or have just completed Debtor in Possession Chapter 11 proceedings.