Many commercial real estate professionals make use of hard money loans in order to build a profitable portfolio. Especially when first beginning in commercial real estate, you probably won’t have sufficient assets to qualify for a traditional commercial real estate loan. However, if you do own some commercial real estate property, it can be used as collateral in a hard money loan.
Since direct lenders are not obliged to follow the same kind of government regulations that banks do, they’re not as interested in credit history and the other criteria that banks are. Instead, the value of your commercial real estate property may be sufficient to get you a hard money loan, which you can then use to progress your commercial real estate business.
Using Hard Money Loans
It isn’t just novice commercial real estate investors who make use of hard money loans, but experienced investors make good use of them as well. Hard money loans can also be used as bridge loans, which will serve as working capital while an investor is awaiting the sale of another property. Anytime you have commercial real estate property that has significant value, it’s very much like having credit which can be put to use in making other transactions and deals.
You can continue to use that same property as an asset for collateral in multiple hard money bank loans, as long as you always pay off one loan before starting another. In this way, your commercial real estate property and your hard money loans can be put to excellent use in building up your commercial real estate business and growing your portfolio.
Interested in a Hard Money Loan?
If you’re looking to obtain a hard money loan, we may be able to help you. Contact us at Monstera Lending Group, and let our financial experts discuss some options with you, which may provide the assistance you need.