What's Involved in Getting a Hard Money Loan

SAN ANTONIO - Oct. 23, 2017 - PRLog -- Per Bruce Myles, owner and founder of Proactive Commercial Lending Group, LLC,"a Texas Commercial Lender," You already know what a mortgage is and probably know there's also a commercial counterpart for buying different kinds of real estate. But, commercial real estate loans or even loans to purchase multi-family housing are difficult to obtain.

The reason for this is because the property in the transaction isn't a primary residence. And, it's also occupied by renters or lessees. So, there is a lot more risk to lenders. Moreover, these properties are a lot more expensive and that also adds greatly to lenders' exposure.

An alternative to a regular commercial or multi-family mortgage is a hard money loan. But, just what is a hard money loan? A hard money loan is financing provided by a group of private individuals instead of a bank or credit union.

It's important to understand a key difference in hard money loans over regular housing or commercial building loans. First of all, hard money loans are not based on the buyer's credit score. Instead, hard money loans are based on the value of the property itself.

And, since hard money loans are not granted by banks, they don't carry all the familiar red tape. Plus, most hard money loans can fund up to 100 percent of the purchase price. That's something that's simply often not an option for traditional lenders.

What's more, there are usually local hard money lenders. This is great because the borrower can form a professional and personal relationship with the lender. Even better, some hard money loans do include typical costs usually associated with traditional loans.

Another important point is hard money loans are not long-term loans. Instead, these are short-term financing options, ranging from just a few months to a year or more. And, funding is super quick, taking just 7 to 14 days rather than 30 days or more. (This is why hard money loans are used for commercial and residential flips.)

Of course, there are other components of hard money loans. One being, they typically come with a higher interest rate. And, usually, require collateral. But, hard money loans have so many benefits.

Proactive Commercial Lending Group, LLC was formed back in 2003 by Bruce Myles with the thought that many good, hard working business owners were not getting the Banking Services they needed to survive,  maintain and grow their business. This was due to the restrictions on banks (FDIC) or banks not willing to take a chance on their own customers and communities (or Lazy Loan Officers)!!For help getting Hard Money Loans in Texas, contact http://www.proactivelendinggroup.com