“We once had some of our rentals stay in the market for so long that we thought selling them was more practical. Driving around the area one day, we realized that to compete with other rentals, we needed to make remodelings and do some upgrades. However, we lacked the necessary funds to push through with the project. Getting a loan from our bank could take time, and we needed to start the remodeling as soon as possible. We searched for alternative financing options, and that’s when we found out about Commercial Hard Money Loans. We immediately applied for a hard money loan, and with all the necessary documents on hand, loan release only took 15 working days. With the fast approval and funding release, we were on our way to remodeling our rentals.”

That was only one scenario where a Commercial Hard Money Loan came in handy for our business. You may find yourself in similar or other business undertakings where you’ll need funding as soon as possible. Read on to find out how.

What are Commercial Hard Money Loans?

Commercial hard money loans are not your typical bank loans. These loan programs focus more on the collateral than the applicant’s finances. In a way, a commercial hard money loan is primarily an asset-based loan. It is a preferred loan type when you are in a hurry to secure a property, need fast money for your business, or even to get out of an unfavorable financial situation. 

How Can Commercial Hard Money Loans Help In Your Real Estate Business Need?

Most or some immediate business decisions you have to make are money related, and most of the time, there is a need to secure funding or cash to ensure the smooth operation of your business. A Hard Money Loan is a fast and secure loan program offered by many private or hard money lenders. With Hard Money Commercial loans in Houston, for instance, you can have a release in as short as seven days if you have all documents and requirements ready when they are needed. 

Top Reasons Where a Commercial Hard Money Loan Is Your Business Ally

So why do you have to secure a loan from non-traditional financial institutions even when your bank seemingly has your back? That is because you know that commercial loan applications with traditional banks, processing, and approval take months and have a ton of paperwork to accomplish and submit. With Commercial Hard Money Loans, you can have your much-needed funds in as fast as one week. Those are just two examples. Here are the top reasons why a Commercial Hard Money Loan is an excellent funding source for your business needs.

Some Examples of Reasons You Need a Commercial Hard Money Loan

1. Bridging gaps in funding needs. When you need to pay your supplier within 15 days, but your expected revenue stream will only commence after a month or so.
2. You need funds fast for business expansion. An opportunity for business expansion came up, and you need funding fast. 
3. When you want to take advantage of a discount for your bulk purchase of raw materials but have limited funds.
4. Your credit score does not qualify with traditional lenders. Traditional lenders require a credit score of at least 660 to qualify for a commercial loan. In contrast, commercial hard money lenders focus on the asset value, not on your credit score.
5. Your sales fell short of expectations because of weather disturbances or other natural circumstances, and you need to sustain your business operations until your sales pick up. 
6. Commercial Hard Money Loans can help you upgrade your properties. For instance, you can install energy-efficient technologies that attract a new wave of eco-friendly consumers. Another is a facilities upgrade to increase the value of your property. With such property upgrades, you may be able to charge more in your rental fees for better revenues.

The Pros and Cons of Commercial Hard Money Loans

In most situations, you should also have the opportunity of evaluating the advantages of a proposition against its disadvantages. The following can help you make a favorable decision depending on your current situation.

The Benefits of A Hard Money Commercial Loan

1. You will get the funds you need fast.
2. Hard Money Lenders do not solely focus on your credit.
3. Hard money commercial loans are an asset-based lending program.
4. You do not have to worry about a big stack of documents to submit because they are easy on documentary requirements.
5. You can develop a long time business relationship with hard money lenders because most are localized, and they know the local market very well.
6. You can enjoy preferential interest rates if you are a long-time client and have a good credit history with your commercial hard money lender.
7. Hard Money Lenders can give real estate investment recommendations because they are also real estate investors. GL&L Holdings is an expert in hard money lending and real estate investments.
8. They can finance a rehabilitation project on a dilapidated property.

Disadvantages of a Hard Money Loan

1. Commercial Hard Money Lenders charge higher loan interest rates than traditional lenders like your bank.
2. Closing fees are, on average, 2 points higher than the charges in your traditional bank.
3. Some charge pre-payment penalties if you choose to pay off your loan earlier.

A Commercial Hard Money Loan Is a Lifesaver

If you are facing sudden and unexpected business-related funding problems, you need to act fast to resolve the issue. Sometimes the issue boils down to getting funding the fastest possible way, and this is where Commercial Hard Money Loans fill the gap in lending because they provide almost instant relief from your financial problems. These loan programs are also excellent funding sources for real estate investors. Hard money commercial loans in Houston provide you with the financial capacity to improve your properties when needed or even help you add more properties to your portfolio.

Call us at 832-770-9415 or send us an email at GL&L Holdings and explore this opportunity further. We can help you navigate real estate investing whether you are a beginner or a seasoned investor who wants to look into expanding your portfolio. We also have other loan and investment programs that may meet your other needs.