Hard Money Loans

There are large number of small hard money lenders that provide bridge loans for commercial property and raw land development, workouts, bankruptcy and foreclosures. Hard money lenders are expecting the property to be stabilized at a higher value or the have the project's bankability be such that the loan can be taken out with conventional financing in one to three year.

Be forewarned, hard money lenders are the lenders of last resort. This is a very expensive option and only makes sense for deals that have been turned down by other types of commercial lenders.

Typical Hard Money Financing Terms

Note: These are not terms of any specific lender. They represent terms that we frequently see in the marketplace and are not to be relied on as a commitment to provide any specific terms for any specific deal.

Maximum loan to cost or value:	60% to 75% of quick sale value.
Term:	Generally 2 to 3 years with no prepay penalty
Amortization:	Interest only
Typical Rates:	3 to 6 pts up front, 11% to 16% fixed rate interest. (15% to 20% per annum)
Recourse:	Typically recourse.
Closing costs:	Closing and due diligence usually takes place in about 30 days. Many lenders require a $5,000 to $10,000 fee before completing the underwriting.

Information You Will Need For Your Application:

Retail Bridge Loans

Office Bridge Bridge Loans

Industrial Bridge Bridge Loans

Apartment Bridge Loans

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