Hard Money Loans for Commercial Property
Is your commercial property in San Diego, Los Angeles, or any city in the United States? We have Hard Money Loans for you. Los Angeles Realty Loans is your go-to company.
Loan Specialist for Commercial Loans. If you need a hard money loan for commercial real estate you should learn a little more about this type of loan.
Hard money loans are similar to a bridge loan. The primary difference is that a bridge loan often refers to the commercial property of investment property that may be in transition and not yet qualifying for traditional financing. Hard money loans often refers to not only asset based loan with a high interest rate, but can signify a distressed financial situation such as being in arrears on the existing mortgage or bankruptcy and foreclosure proceeding may be occurring.
A hard money loan is the type of real estate loan that is collateralize against the quick sale value of the property for which the loan is made. Most lenders will want to be in the first lien position. Meaning that if the borrower goes in default, the lender will be the first creditor to receive remuneration. It’s not very often that the lender would assume the second position.
Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the loan to value or LTV ratio and typically hovers between 60-70% of the market value of the property. For the purpose of determining an LTV, the word ” value” is defined as today’s purchase price. This is the amount a lender could reasonably expect to realize from the sale of the property in the event that the loan defaults and the property needed in one to four months time frame. This value is not the same as the market value appraisal.
If you fit into some of these categories, then maybe you need a hard money loan. Give Los Angeles Realty Loans a phone call and discuss your options for hard money loans. Or Fill Out an Application Form to get a more specific answer from Los Angeles Realty Loans.
Call Los Angeles Realty Loans at: 877-250-3030