Time is often not on your side in the commercial real estate industry. Sometimes you just need money fast. These situations are when property owners, developers, and investors have to act quickly. In this situation, you can look for hard money commercial mortgages.
They don't have the time or patience to go through all the paperwork that goes along with getting a loan from the bank or Wall Street. Closed conventional loans that are funded by large institutions may take between 60 and 90 days.
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Commercial property professionals need fast decisions and closings when time is critical. Hard money loans are the answer.
Private individuals and privately-owned firms often call mortgage loans "hard money". This is because the loan is underwritten on the value of the collateral real property.
Private lending does not depend on the income or credit of the borrower. Borrower credit is often not a factor. Private commercial mortgage lenders are equity.
Hard money loans can be made by individuals and firms. They are not regulated, are free to make quick decisions, and can close loans very quickly. Lending decisions are usually made by one or two individuals.
There is no loan committee that can slow down the process. Hard money lenders don't require any documentation. Their main concern is to determine the equity of a property. Private lenders don't require appraisals before they approve loans.
Privately funded loans can close in as little as 5 days, even though the loan amount is millions. While most loans take between 2 and 3 weeks to complete, they can move as fast as the borrower requires.