Even in these tough economic times Broker Enterprise, LLC is able to fund difficult hard money commercial loans that most other lenders would turn down. Below are the details on Broker Enterprise's, LLC hard money commercial lending program. Commercial Hard Money loans are typically used for borrowers who have bad credit or less than perfect credit or who need commercial funding fast. We offer hard money commercial loans where low credit scores are of limited concern.
Hard Money Commercial Lending Basics
What is the main reason an investor would use hard money commercial loan?
The two main purpose of a hard money loan is acquiring non income producing properties and foreclosure bailouts.
Is it possible to get 100% hard money commercial loan?
Yes, even in commercial hard money loans it is possible to obtain 100% acquistion.
What is a hard money commercial loan?
The definition of "hard money commercial" when referred to in real estate financing, is essentially a non-bankable loan. The name hard money commercial is frequently interchanged with "no-doc" or private loans. For a hard money commercial loan, the underwriting decisions are based on the borrower's hard assets (real estate). Hard money commercial loans typically close relatively quickly. Broker Enterprise LLC is the leader in hard money commercial lending (NO-DOC / Private lending).
Hard Money Commercial Lending verses traditional lending
Traditional loans from banking institutions rely heavily on borrowers income, credit, tax returns, etc.. as opposed to a hard money commercial loan's primary reliance on the hard real estate asset. Along with requiring substantially more documentation, conventional lenders have minimum credit scores (typically low 700 Fico and above) as opposed to hard money commercial loans that are underwriting on the collateral as opposed to the borrowers credit (Broker Enterprise LLC has closed loans with FICO scores in the low 400s). Along with different underwriting standards, loans on conventional commercial loans can take months to close; hard money commercial loans close much quicker. The final important differentiator between hard money commercial financing and conventional financing is the interest rate. Since there is more risk in a true collateral based loan, the interest rates are higher than a conventional mortgage.
When is a hard money commercial loan appropriate?
There are numerous circumstances where a hard money commercial loan is the best option for a client.
Borrowers with impaired credit (Broker Enterprise LLC can lend to borrowers with any credit)
Tax Liens/Judgements/unpaid utility bills, etc…:
Partner Buyout
Owner Occupied properties
Time constrained borrowers
Foreclosure avoidance
Foreign Nationals
Complex loans with multiple pieces of collateral
Why we ask for a credit report? Even several of our programs do not base on credit scores, some of our funders like to know if the client is a "400 fico...upside down right now with recent repossesions, liens, lawsuit, bks, etc ...clouding title. If the client can't make a car payment, how can he/she pay for a commercial property?"
Even 100% Acquisition available
Quick Closings
Individuals, Corporations, LLC's, Partnerships, Trusts, Estates, etc.
Non-credit score driven
No income verification
Bankruptcy/Foreclosure OK
LTVs up to 75%
Most property types: Office Buildings, Restaurants, Marinas, Retail, Apartments, Gas Stations, Bed and Breakfasts, Mixed Use, Mobile Home Parks, Churches, Auto Repair, Industrial, Hotels, Motels, RV Parks, Land Loans, Retail, Golf Courses, historical buildings, multifamily, Strip Malls, Shopping Centers, Resorts, Self-Storage, Adult Entertainment, etc.
Loan Purpose: Purchase, Refinance, Bridge loan, Operating Capital, Cash Out Refinance
Typical Interest Rates: 9% to 17%
Typical Costs: 4 to 10 points - These may be rolled into the loan
Minimum Loan Size: $250,000
Maximum Loan Size: No Maximum
Loan Terms: Typically 1 to 3 years
No Prepayment Penalty
RESIDENTIAL HARD MONEY
Minimum Loan Size: $50,000
Maximum Loan Size: $1.5mm
LTVs up to 75%
Read parameters above
Hard Money Line of credit avail: 620 fico, 2yrs tax, and $20k liquid cash **amazing program if clients thinks about it deeply.
