FL Commercial Private Money Loans | Florida Private Mortgage

Commercial hard money can be used to your advantage if you own a commercial building and need money not available through conventional loans, or perhaps needed more rapidly than would occur with conventional financing. Often hard money can be obtained in 10-21 days with less paperwork than conventional loans, so keep it in mind as you look for financing.

Any commercial property can be used as collateral for a hard money loan, including an apartment, mixed use, hotel, restaurant, warehouse, or office building. The owner will need to have free and clear ownership or owe very little because the hard money investors are looking for the equity as collateral for their investment. Credit rating, though considered, is less stringent than with commercial financing, making hard money useful for commercial owners.

Many property owners are self-employed and may have erratic income, or they are claiming losses on their taxes. These owners will often be turned down for conventional loans. Hard money investors will invest in most of these situations, knowing that their investment will be for a relatively short term and has the security of the equity to mediate their risk. Interest rates are higher with hard money loans, so owners are normally looking for bridge financing for renovations or other uses until conventional financing can be obtained.

There are different commercial hard money loans available, so talk with Shop Commercial Mortgage about what suits you best:

Alt A or Subprime Loan — These loans can often be obtained for up to 65% of loan to value (LTV) with good income statements. They are excellent products for clients with less than perfect credit.

Bank Statement Loan — These loans are secured by the real estate but also use one to two years of bank statements to show funds available to pay the loan. The loan processing is handled similarly to a subprime loan.

Foreign Nationals Loan — Foreign nationals can take advantage of hard money loans with no credit. LTV might be a bit lower than other loans, but investors will often supply up to 50% of the property’s value.

Bank Conforming Loans — These loans use income and credit, thus will have more complex underwriting and longer loan completion times. Owners will need to show income, tax returns, profit and loss statements, and other documentation as they would to a conventional lender.

If you own commercial property with substantial equity and need funds quickly for renovations or other uses, contact Shop Commercial Mortgage today. We will be happy to discuss your needs and find you investors who can help you meet your goals.