A commercial hard money lender is a private individual or company that offers short-term loans secured by real estate. They focus on the value of the property rather than the borrower's creditworthiness, making them a popular choice for borrowers who may not qualify for traditional bank loans.
Commercial hard money loans, also known as traditional financing or traditional bank loans, are loans funded by private lenders based mainly on property equity. Since investors could have different opinions about your property value and ability to pay, and each investor offers different rates & terms, you should shop your hard money loan to several private lenders simultaneously. By not shopping your loan to multiple lenders, you are taking the risk of not getting favorable loan terms or not getting the loan at all. The major advantage of commercial hard money loans over traditional loans is the speed and flexibility they offer, although they do come with a higher carrying cost in the form of an interest rate. One of the key differences between a commercial hard money loan and traditional financing is the source of funding. Commercial hard money loans are funded by private lenders, while traditional lenders fund bank loans.
For small commercial loan amounts up to $10 million, your best bet will be local hard money investors who are organized through local hard money loan brokers and direct lenders in your city and state. For larger loan sizes up to $250 million, we connect you with nationwide lenders in addition to lenders near you.
Lendersa® will match your loan request to the best-matching commercial lenders among thousands of commercial lenders in our database.
Social Security Number is not required to receive multiple loan offers from our lenders.