Commercial Hard Money

For numerous people understanding how a commercial hard money is approved is a mistery. In reality there is nothing simpler. A hard money lender wants to be confident about proeperty values and the income it generate or could generate. The rest is not as important.

Let me debug an hurban legend: A hard money lender does not want to take over a property. Foreclosing is not in the best interest of a lender it cost money and prevent the lender to re-invest its capital. When a property is foreclosed its then sold at auction any extra money generated is turned back to the former owner. When a lender keeps a property its in general because nobody else wants it.

Commercial Hard Money loans are going to be approved based on property income actual or potential. A lender wants to acertain the ability the property has to service itself. The net income generated from by the property should cover the loan monthly payments on an interest only basis. The Loan To Value is not as important as the income. There will be more or less flexibility based on location. For example a downtown building will command more exception than a building in less desirable area. Hard Money Commercial lending is all about understanding what the financing is all about.