Commercial Hard Money Rehab Loan
From a traditional banks perspective Commercial Rehab Loans are essentially commercial construction loans. Banks typically require the same documentation on rehab financing (plans, permits, engineering reports, inspections, lien wavers, etc) that is required on new construction. Although the rates and costs are much better when compared to hard money, borrowers seekign construction or rehab financing "pay" for these loans with their time and intense documentation/reporting requirements. As we all know , time is money and deals could fall apart when too much time is necessary. Investors who are savvy or who have a solid and profitable plan a hard money rehab loan will still reap great rewards.
Other options for borrowers who are seeking conventional rehab financing, is to access and use equity from another property from a second lien to finance their project. Advantages of utilizing this method are plenty.
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No document reporting to the bank.
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No waiting for capital/draws while city and bank approve work.
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Ease of process – closing in 30 45 days.
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Low costs of capital.
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No 3rd party or upfront fees.
For typical commercial financing, you'll need some collateral and a solid business plan. You will also need various appraisals, surveys, reports, and business projections depending on the type of commercial project.
If you need quick money for a commercial real estate project, rehab funding, iInvestor rehab loans, or are purchasing raw land for new development, we can get your funding quickly.
Suppose you find a hotel, office or condo project.
In general, hard money loans are for short term financing. Their purpose is to help you start to get back on your feet with investments if you have blemishes on your credit or if you need financing very quick due to the conventional commercial financing process taking too long.
