Despite the name, hard money loans in your investment strategy are a useful tool to make buying non-owner occupied real estate easier. Below are four reasons hard money loans are reviving the Florida commercial real estate loan industry:
It’s a Quick Process
Obtaining a traditional commercial real estate loan is a lengthy and time-consuming process. While you are getting qualified, you may encounter endless documentation and weeks of delays, and the property may become unavailable in the meanwhile.
You Won’t Be Slowed Down by Credit Issues
Traditional lenders place a high value on credit scores and income history, both of which can exclude you from receiving financing if they aren’t up to par. Instead, hard money lenders consider the property’s worth and use the property as collateral to secure their loan.
A More Compelling Offer
A seller who knows you’re financing a commercial property with hard money will be more receptive to your offer because they know it’ll close faster and with less red tape than a conventional loan. Sellers don’t want to wait weeks only to find out their financing application has been rejected.
A Greater Degree of Flexibility
Conventional lenders follow rigorous guidelines, and any loan or property that falls outside of their comfort zone or criteria is automatically rejected. Hard money lenders have a lot more leeway in terms of what and how they can back a commercial loan
Monroe Funding Corp has a wealth of experience and knowledge to help you reach your investing goals. To learn more about Florida Commercial Real Estate Loans, contact us online or by phone at +1 (954) 419-3539.