Investing in commercial real estate is quickly becoming the best way to make money. Many parts of the US are rapidly becoming great locations where the best types of commercial property are available.
There are opportunities just knocking on the door. However, you must know what you are doing to earn the huge profits that are available. The first thing you have to obtain proper financing. If you have any experience in real estate investment, then you are definitely aware of the incredibly lengthy process that conventional loans must follow. Banks must adhere to the defined rules and strict regulations and mandate the borrowers follow them, accordingly. Hard money offers a simpler opportunity to investors that include modifying the loan amount, terms and conditions.
There are no middlemen with hard money loans between the borrower and the lender, as there are in traditional bank loans. Borrowers bring the required documentation and meet one-on-one with the lender. Borrowers will know within a few days if their loan is approved. This fast financing is priceless in the world of real estate investing. Funds are typically provided within 2 weeks; unlike the 30 to 90 days you may wait for a traditional mortgage.
Working with a hard money lender on a commercial real estate deal can benefit you tremendously. Unlike bank lenders who have no interest in the type of commercial real estate you are choosing to invest in, hard money lenders have a plethora of knowledge concerning the area you are buying property. They will share this information because this is an investment for them, as well.
Once you have been approved, you will hand over any necessary documentation and sign a contract. Typically, the lender will go out and visit the property to make sure it is legit. You will also sign a promissory note and a deed of trust. You will sign a deed of trust showing the property is securing the loan.
These loans are short-term, high-interest loans. Most borrowers are either using these as rehab loans or will refinance within a short time. Commercial hard money loans are generally around 18 months to 3 years. Unlike bank loans, these loans rarely have early payment penalties.
The amount of knowledge, security and flexibility of a hard money lender makes hard money commercial loans your best option. To find out more about commercial hard money loans, please visit us at level4funding.com.
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About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.