Creative Financing for Commercial Loans
By: Kimberly Hoffman
Commercial loans, with traditional banking financing, require borrowers to put 20% to 30% down with stringent requirements and a funding process that may extend several months. The extensive funding time alone can put projects on hold and ultimately affect your bottom line. Fortunately, there is an alternative to this problem that can streamline the process and get your project moving by way of hard money lending.
Hard money lending is an excellent option for those seeking funding for projects that require some rehab and programs that will exponentially provide funds as projects progress. This process can be rather quick in comparison to traditional financing options and requirements are less stringent than banking options. Hard money lending for commercial loans is an excellent option for those who need money right away for financing or rehabbing commercial property.
Upside to hard money commercial loans
Once you have established a commercial loans and project is near completion, plans to recoup investment can be considered. A good broker can help to guide you in the best course of action to achieve this goal. In most cases commercial loan borrowers can increase property value, raise rents, and double your profits within the first year or two after renovations conclude.
Leasing options for commercial loan properties
The good thing about master leasing a commercial loan property is that it allows you to get into a deal with no or little cash (except the capital you might need to renovate), and it allows you the opportunity to benefit by implementing better management.
Commercial loans done by way of hard money loans offers a creative way to get your project quickly under way and maximize your profitability.