3 Ways To Use Commercial Hard Money Loans

By August 27, 2020 Blog
3 Ways To Use Commercial Hard Money Loans

Real estate investing is always a race. A race to find the best properties, the best investments, funding, and highest profits. That’s why using commercial hard money loans is critical for any investment strategy.

Commercial hard money loans make every aspect of your investment easier. From closing, funding rentals or office spaces, and profiting off your investments. Commercial hard money lenders are there to make sure you have exactly what you need.

The best investors know that commercial real estate is an endless goldmine. For many investors finding the best commercial hard money loans is a necessity for their investments. Commercial hard money lenders are easy to find and fund!

Want to use a commercial hard money loan for your next investment? Read more about the three ways you can use commercial hard money loans here.

What Is A Commercial Hard Money Loan

Hard money loans are a must-have tool in any real estate investor. The best investors know when to use hard money lenders for commercial property. Hard money loans can be deal savers!

Hard money loans are asset-based loans, meaning the loan is set in the property value of the investment. Some hard money lenders may use the after-repair value of a property to base the loan value.

When is the right time to apply for commerical hard money loans? Flipping or repairing an investment!  These loans are used to purchase and repair these properties. Landlords find commercial hard money loans fast and flexible.

The best ways to use a commercial hard money loan are: 

  • Multi-family rentals
  • Retail spaces
  • Warehouses
  • Office buildings

As an asset-based loan, commercial hard money lenders finance fast.  They don’t require credit scores or employment records to be approved. The interest rates are higher than traditional bank loans.  Hard money loans also have shorter terms depending on your investment type. Traditional loans need long waiting times to approve. Hard money loans are fast because the asset value of the property qualifies for the loan.

Need a commercial hard money loan in a few days? Hard money lenders only need hours to approve your deal. Some investments are funded in a few days!  Commercial hard money lenders offer more flexibility than other loan types.  These are a few reasons why commercial hard money loans are a favorite for investors.

How To Use Commercial Hard Money Loans For Multifamily Investments

Most investors know that the best revenue source is rentals. That’s why the more the merrier! While finding duplexes and single-family homes are a great option for first-time investors. Multifamily dwellings can increase your profits, and passive income five times over!

Multi-family properties are buildings that consist of four to five separate family dwellings. A study by the National Multifamily Housing Council showed that 63% of all rental properties are multi-family properties, while only one-third of them are single-family homes. Making them popular and easy to find!

Some benefits of Multi-family properties are that the cost of managing, upkeep, and tenant turnover is less than single rentals. With minimal effort, you can profit with multiple tenants, and not see any profit gaps over time. Making them easy passive income for any investor!

Purchasing a property? Planning to renovate? Need to close quickly?  Call commercial hard money lenders. Commercial hard money loans are great for multifamily investments.

Commercial hard money loans make it easy to get funded and start on your rental investment. Charge higher rents with renovated properties.  Fill funding gaps, or purchase multifamily properties with these loans! Commercial hard money lenders know the risk of these investments and can even offer suggestions to help you improve your investments and make the best deal!

How To Use Hard Money Lenders For Commercial Property

Investing in commercial spaces are a gateway for long-term income. Combine the right locations, attracting the right tenants, and make the right upgrades! Commercial properties are perfect for real estate investors to make serious pay-days.

The benefits of buying a commercial property are:

  • Long-term revue streams
  • Long-term tenants
  • Low maintenance
  • Properties can value over time depending on the market

Commercial properties offer serious long-term benefits to investors. That’s why finding the right loan is so crucial, as the right loan can help them earn more money over time.

Speed, and flexibility. That’s what makes commercial hard money loans are ideal for investors.

Traditional commercial real estate loans require extensive paperwork and financial underwriting from banks. These can take several months to be approved for funding. Additionally, they require credit scores, background checks, investment plans, and much more. An asset-based commercial hard money loan, you can be funded and approved in a week or less!

Commercial hard money lenders can lend on the asset value of your investment, and even offer higher loan amounts for the after-repair value for these investments. Commercial hard money loans are shorter than traditional loan counterparts. These can be easily refinanced depending on your investment and exit strategy.  Oftentimes they can provide financing on commercial investments that other lenders would consider high-risk.

Hard money lenders for commercial property make it easy to purchase, renovate, and maintain office spaces for your clients.  Retail spaces, Offices, Business Parks, can be purchased with commercial hard money loans.

Commercial properties are easy to invest in with many options for financing. If you are looking to invest in commercial properties, commercial hard money loans may be the best option.

Commercial Hard Money Lenders For Bridge Loans

Funding gaps can stall any real estate investment. That is why one of the best ways to use a commercial hard money is for bridge loans. Bridge loans are used to fill funding gaps for real estate investors. Real estate investors can quickly get investments back on track with commercial hard money loans, .

Bridge loans are used to help commercial real estate investors refinance their properties. Often used to ‘bridge’ the gap in funds these hard money loans are easy to refinance. These loans offer a quick influx of capital to an investment. They help prevent foreclosure, finish projects, and get a commercial property ready for the next stage of investment.

High-risk commercial properties can also be funded with these loans. Bridge loans are often used to purchase foreclosed properties and auctions. These loans are made to be refinanced at a later date, making them flexible options for real estate investors.

With any commercial real estate loan, having an investment plan is crucial. Exit plans can help you determine the success of a property, and with the help of a bridge loan can be used to help get your investment to the finish line.

Summary

Commercial hard money loans make it easy to invest in commercial properties.  For fast and flexible loans investors turn to commercial hard money lenders for quick-moving deals. They are easy to refinance and have less stringent loan requirements than other lenders.

3 Ways To Use Commercial Hard Money Loans:

  • Multifamily Investments
  • Commercial Property Investing
  • Bridge Loans

Applying for a commercial hard money loan is as easy as a few clicks. For faster approvals make sure you have your property information and you can be approved in as little as 12 hours!

Learn more about our hard money loan programs here.

 

 

Prime Plus Mortgages

Prime Plus Mortgages

Prime Plus Mortgages is a licensed hard money lender. We specialize in hard money loans, bridge loans, fix and flip loans, home rehab loans, for developers, property flippers and buy-and-hold strategists. HML programs make private money available for small to medium scale projects.