If commercial real estate is your business, you need to be able to take advantage of an opportunity when it falls in your lap. This requires the ability to obtain capital quickly and easily. However, many times a traditional bank loan is out of the question. You’ll need a hard money loan to generate cash-flow and get the ball rolling on a new investment. This also means you’ll need a commercial hard money lender you can trust.
At Liberty Mortgage, we’re highly experienced at securing commercial loans for investors and business owners wanting to expand their reach. Our team will evaluate your needs and find a loan that’s perfect for your long-term goals. We provide loans for property related to:
- Office or warehouse space
- Retail operations
- Auto-related operations
- Multi-family properties
- Hospitality operations
- RV/MH parks
What Makes a Hard Money Loan Unique?
Business projects need time to grow before they can start generating revenue. This is a tricky situation for a borrower who needs to secure a loan for commercial property in order to get their operation rolling. Banks won’t approve a loan unless a business is bringing in enough profit to pay off the debt. Instead, a hard money loan can give the borrower the opportunity to make their business profitable.
With hard money lending, the borrower uses the commercial property as collateral when securing financing. Lenders don’t require proof of revenue or credit scores to approve the loan. Instead, borrowers can get the capital they need to get their business off the ground by using assets such as commercial property to secure the loan. If the borrower fails to make payments, the lender can sell the property.
Benefits of a Hard Money Loan
On the surface, a hard money loan may seem risky. However, these asset-based loans are meant for specific situations. When used properly, they provide a number of benefits to investors or business owners.
- Flexible terms – Traditional bank loans usually involve a standardized process that involves each borrower meeting certain criteria. Hard money lenders, on the other hand, analyze each loan situation individually. This means you can create a loan agreement that fits your needs.
- Faster approval process – Because the property is being used as collateral during a hard money loan, the lender doesn’t have to spend time evaluating personal information such as credit scores, income, and financial history. This means a loan can get approved much quicker, which is great for businesses or investors waiting to get started on their next project.
- Approval amounts – With an asset-based, hard money loan, borrowers can receive financing in the amount of the property they’re using as collateral. Because the lender can sell the property if payments aren’t made, they have no problem approving a loan for the full value. This amount may be difficult to get when pursuing a traditional bank loan.
It’s important to understand that a commercial hard money loan typically has higher interest rates than a bank loan. However, they come with much shorter term periods. Plus, once a commercial project starts bringing in revenue, the loan can be paid off rather quickly.
Liberty Mortgage can provide loans with no minimum credit score. We offer 2-year interest only loans and 10-year fully amortized loans. You’ll enjoy no prepayment penalty and non-recourse on most of our hard money loans. Our Commercial Portfolio lending can close in as few as five days with loan to value up to 80%. Call us for details.
Contact Liberty Mortgage to Secure a Hard Money Loan
Whether you’re looking to invest in commercial property or need capital to get your next business venture off the ground, Liberty Mortgage can help. Our team will walk you through the process of securing a hard money loan so you can start doing what you love. Contact us today to get started.