Finding the perfect loan for needs of client is a job of commercial real estate investment broker. Several ways are here to find this perfect loan.
Alternative Sources
Most banks do not fund 100%.If client doesn’t have a perfect credit rating, no matter how good client’s loan rate looks, banks just aren’t lending money these days.
Micro Financing
Micro financing is alternative loan source. lending can make funds available for those who are blocked from financing through traditional ways. But they involve small amounts of money.
Hard Money
Small groups or private individuals loaning money are HMLs or hard money lenders. This source of funding provides needed amount 100 percent.
These loans cost much up to two times more percentage wise than average mortgage or commercial loans. A regular commercial loan does as well as high origination fees. HML is another alternative loan source. If property can be bought and turn it around quickly for a huge profit, hard money loans are probably the way to go.
Uses of Hard Money
Hard money is used to get into a property and do some quick fixes in order to raise the property value, and client can attempt to get a new loan based on the new improved property value from a bank or a more traditional source of funding.
Hard money loans are good for short term rehabs, flips or for the initial purchase. For More Details
Alternative Sources
Most banks do not fund 100%.If client doesn’t have a perfect credit rating, no matter how good client’s loan rate looks, banks just aren’t lending money these days.
Micro Financing
Micro financing is alternative loan source. lending can make funds available for those who are blocked from financing through traditional ways. But they involve small amounts of money.
Hard Money
Small groups or private individuals loaning money are HMLs or hard money lenders. This source of funding provides needed amount 100 percent.
These loans cost much up to two times more percentage wise than average mortgage or commercial loans. A regular commercial loan does as well as high origination fees. HML is another alternative loan source. If property can be bought and turn it around quickly for a huge profit, hard money loans are probably the way to go.
Uses of Hard Money
Hard money is used to get into a property and do some quick fixes in order to raise the property value, and client can attempt to get a new loan based on the new improved property value from a bank or a more traditional source of funding.
Hard money loans are good for short term rehabs, flips or for the initial purchase. For More Details