How Hard Money Loans Can Help Real Estate Investors Develop a Profitable Portfolio
Savvy investors seeking to quickly build a successful commercial property investment business should think about a hard money loan as an alternative. When first starting out in the commercial real estate business, you may not have a substantial amount of assets or may not yet meet all the requirements banks deem necessary to be eligible for a traditional commercial property loan. But you most likely own some commercial real estate property.
Along with the property that you already own is key. A hard money commercial loan comes from a direct lender, and your property is the collateral. Direct lenders do not have to take care of the strict government regulations faced by banks, and thus are interested far more in the value and income-generating potential of the commercial property you already own than in your personal or business credit. Using your property as collateral can open up choices that a lender might not be able to provide, offering you the opportunity to quickly take out a short-term loan which can be invested in a different income-producing commercial property, generating profit for you in the procedure.
Hard Money Loans as Business Builders
But hard money loans aren’t just for beginning commercial property investors. While building a commercial property investment business, hard money can successfully be utilized not just as a route to profit for savvy commercial real estate investors, but also as a bridge loan, 1 which can help a commercial property business develop and grow to the point where it will easily meet bank requirements for commercial property loans. These bank loans, once obtained, can then be utilized to both repay hard money loans from direct lenders, and as a tool to complement the use of hard money loans in the attainment of commercial property via the continuing use of your commercial property as collateral to boost business profit and revenue.
Collateral Could Be as Valuable as Credit
When you start out in the real estate investment business, and are first constructing your portfolio, you may be disheartened when you think that traditional routes are the only option if you don’t yet meet all the regulations and requirements necessary for financing. However there are choices, and they can be extremely beneficial to you as a commercial property agent in both the short and the long term, so long as you learn how to find them. With the correct income-generating security, hard money commercial bridge loans can be an excellent option for your business growth both at the start of your career and as your portfolio of commercial real estate property expands. Your collateral can be as valuable as your credit as you grow your business into a successful and profitable commercial real estate investment endeavor.
Get a Hard Money Loan to Grow Your Commercial Real Estate Investment Business
Elevator Financial, a direct commercial lender based in New York, NY, offers hard money loans and commercial bridge loans to borrowers nationwide (excluding Nevada), and serves urban and suburban markets with populations over 250,000. We offer hard money loans between $100k to $10+ million, and our final time averages between 2-3 weeks. Want your hard money commercial loan request to be reviewed quickly? Apply now!
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