If you’re obtaining a decent commercial property, and not have the necessary credit scores, a combination of credit restoration and a commercial hard money loan maybe an option for your current commercial real estate transaction.
Poor to Fair Credit
What is the purpose of considering a commercial hard money loan? Is it because of your credit score or is it because of the type of commercial real estate property that you are purchasing?
If the reason you’re selecting a commercial hard money loan is because your personal credit then we suggest a short term commercial hard money bridge loan. This strategy will allow you time to restore or fine tune your personal credit and exit out of your commercial hard money bridge, which will save you money by refinancing into a conforming commercial real estate loan or simply flipping the property.
If the reason you’re a selecting a commercial hard money loan for property type that is non-conforming with banks then we suggest an alternative commercial real estate loan, which basically means that you are selecting an alternative to a confirming commercial loan because the property type is not acceptable at your local bank.
The interest-rate on a alternative commercial real estate loan is slightly higher than a commercial financing with your local bank.
Usually, lenders require a minimum of 680 or better for conforming rates and terms on a commercial real estate loan. If your credit score is less than 680 and your in a commercial hard money loan, it is quite simple to invest into a good credit restoration system, refinance out of your commercial hard money and save thousands of dollars a month by refinancing into a conforming rate. Your exit options at that point would be SBA or commercial real estate lending.
Pre Payment Penalty
If you’re thinking short term on your commercial hard money loan and you have an exit strategy in place, which should be credit restoration and refinancing into a commercial finance, a prepayment penalty is unnecessary for your commercial hard money. There are several commercial hard money programs that do not have a pre-payment penalty.
We understand all kinds of business and real estate investment situations. We work closely with business owners and real estate investors. if you decide to obtain a commercial hard money loan for your commercial real estate property, we suggest that you take advantage of our free consultations.
For more information on how we can locally help you with commercial hard money in Naples FL, Marco Island, Bonita Springs, Estero and Fort Myers FL please fill out the online contact form about your concerns or give us a call at 239.260.4602. Read what our valued clients have to say about First Pro Capital and Credit Consulting Experts on our Testimonials page.