commercial hard money lender

What is Commercial Hard Money Lending?

With a commercial hard money loan, underwriting decisions are based on the borrower’s “hard assets” (real estate assets).  Such loans are also called “no-doc loans”, “private hard money loans”, “bridge loans”, etc.  For a commercial hard money loan, the lending decision is based on the “commercial asset” as opposed to relying heavily on a borrowers credit, financials, etc…

By relying on an asset, private lenders are able to fund transactions that might not fit traditional lending guidelines.  Fairview is a unique lender in the hard money space.  We our a direct lender and lend our own funds; we underwrite in house without any upfront fees for due diligence, etc…  This allows Fairview to provide honest answers quickly without the thousands in out of pocket expenses typically required for a commercial loan (appraisals, etc…).

How is Commercial Hard Money different from a bank loan?

The following table summarizes the key differences in loan characteristics between a conventional bank loan and a hard money loan from Fairview Commercial Lending.

Bank Fairview Commercial Lending
Basis for loan approvalIncome, credit score, tax returns, financialsReal estate assets
Minimum FICO scoresTypically 700+None
Required documentationSignificantMinimal on the property
Upfront feesInspections, appraisals, application, etc…No upfront fees
Loan CommitteeRequiredNone
We make the decisions directly
Loan Money Received
2-3 monthsLess than 10 days

 

A commercial hard money loan is a good alternative to traditional bank financing. This alternative financing can be very beneficial to the borrower in many circumstances. Below are just a few of the reasons when a commercial hard money loan might be appropriate.

When is a Commercial Hard Money loan appropriate?

  • You need a loan quickly and can’t wait the 3 to 6 months for a traditional bank loan
  • You need a “bridge Loan”
  • You do not qualify for traditional financing for whatever reason (income, tax returns, unique property, etc..)
  • Transaction not plain vanilla and therefore falls out of traditional lending parameters (see recent article: where to go when bank says no)
  • Your credit is impaired
  • Although you have ample equity, You or your property has liens, judgments, unpaid bills, etc. that cash is needed to resolve
  • You have ample equity in your property and need cash
  • You need business working capital (see why hard money is cheaper than factoring)
  • Your property is occupied by your business, and your financials don’t tell the full story
  • You need a loan without all the documentation requirements of a bank (stated loan)
  • You are trying to avoid foreclosure and restructure your debt
  • You are a foreign national
  • You need a complex loan with multiple pieces of collateral
  • You need a creative solution to a loan that doesn’t fit other lenders

Additional Resources for Commercial Hard Money Lenders

 

 

Fairview Commercial Lending is recognized private hard money lender with an A+ rating with the Better Business Bureau.