Many myths have come about commercial hard money. Commercial hard money may sound like a bail out loan, only in some circumstances. Commercial hard money is a commercial bridge to get you to the finish line, whether it is a purchase with rehab, unique property type, fractured condos, or short-term commercial real estate lending. Commercial hard money does have requirements that are similar to SBA and they are:
Credit Score
If your personal credit scores are weak and you would like to purchase or refinance a commercial property, chances are you will not get approved, unless your loan to value is low, which is a necessary factor when your personal credit scores are low, a minimum credit score of 660 is doable.
Leverage
How is overleveraged defined? It can be defined as excessive debt on the property. Example: An alternative lender provided commercial financing over the debt service ratio and the true real estate climate, which an exit strategy to refinance out of that commercial loan is close to impossible, a commercial hard money will not solve this scenario. The final exit strategy is to sell since no other exits are available. With SBA, the commercial property’s debt service ratio must comply with SBA guidelines with a commercial purchase or refinance.
Liquidity
SBA and commercial hard money can offer low down payment or no down payment at all. Requesting a low-down payment or no down payment requires proof of liquidity. Liquidity is a necessary factor for a low or no down payment for SBA and commercial hard money.
Seasoned Experience
A proven track record of your seasoned experience will achieve your commercial hard money and SBA loan
Tangible Assets
Your primary residence, rent roll and accounts receivable take part in the loan decision making for SBA and commercial hard money.
For more information on how this Florida boutique firm can help you with a Non Bank SBA and Florida’s Commercial Hard Money programs 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.
-Serving Florida Business Owners Since 2006
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