People who are early in their careers as commercial real estate investors usually don’t have a lot of assets which can be used as collateral, and they also don’t usually qualify for traditional commercial real estate loans. In situations like these, a hard money loan just might be the answer, especially if you own any other commercial real estate property.
Hard money loans come directly from an alternative lender, and any property you have can serve as collateral for that loan. Direct lenders don’t have to bother with tight government regulations like banks do, and that means they’re much more interested in the earnings potential for the commercial property you’re considering for purchase. Using your commercial real estate property as collateral, you may be able to secure a hard money loan that will help you to carry through on your next commercial real estate transaction.
Growing your business
The great thing about hard money loans is that they’re not just for beginning investors. When you’re trying to build up your real estate investment business, a hard money loan can be used as a bridge loan, which can be another way of increasing your portfolio. After a few transactions like this, you’ll probably also qualify for a traditional bank loan, and that can put you in the fast lane to success.
Using your collateral as credit
As you’re building your real estate portfolio, you might be disappointed to find out that traditional bank loans may be the only option to achieve the kind of success you’re looking for. But alternatives are always available if you only know where to look for them, and how to go about obtaining them. By using your collateral as income-generating credit, hard money loans can be used in the same way the bridge loans can to help you achieve your goals.
This is true whether you’re at the beginning of your commercial real estate investing career, or whether you are well into it and are firmly established. Keep in mind that the collateral you own in commercial real estate property can be extremely useful to you in terms of securing hard money loans, and launching you into a higher level of success.
Hard money loans with Mossberg Strategic Capital
If you’re interested in obtaining a hard money loan, contact us at Mossberg Strategic Capital. We work with a number of commercial real estate investors, and if you have any kind of collateral such as property, our financial specialists may be able to help you.