Hard Money Loans

Fast and Creative Lending

As one of the nation’s leading hard money loan brokers, Biz4loans offers both commercial and residential hard money loans.  As a commercial loan broker, our goal is to provide the borrower with the easiest and quickest access to hard money and private loan options that are secured by real estate.  With over 400 loan programs at your disposal, our hard money loans can be funded within 5 to 7 working days.

Every loan in these programs is an equity-based financing option based on real estate.  Unlike other loan options that based on certain merits such as the borrower’s ability to repay the loan as well as their credit history, employment record, and income, these hard money loans are based on the merits of the property.

A Hard Money Loan is Asset-Based Loan Financing

The proceeds from hard money loans are typically used for projects that last as few as 2 or 3 months up to 2 to 3 years and are provided by private companies or investors.  They are similar to Bridge Loans, or the financing of commercial or investment properties that hasn’t qualified for permanent, traditional financing and is in transition.  However, hard money loans refer to asset-based lending with higher interest rates and possibly financial distress such as foreclosure proceedings or going through bankruptcy.

Appraisal

Getting a commercial real estate appraisal can be extremely costly and oftentimes run between $2,000 and $4,000 on real estate loans of roughly $1 million.  However, appraisals can cost considerably more on very large projects.

Collateral

Unlike traditional lenders, the private companies and investors that provide hard money loans typically look at the property to secure the funding.  Should the borrower default on the loan, the lender can seize the property and sell it in order to recoup the funds.

Toxic Report

Prior to making a loan for commercial real estate, most lenders will require seeing a Level 1 Toxic Report.  This is because they are strictly liable for any clean-up costs that arise should they foreclose on any property that is deemed as being toxically-impaired.  Here are some important points about Level 1 Toxic Reports to be aware of:

What is a Level 1 Toxic Report – a report that is prepared after an environmental engineering firm has investigated a specific piece of property for contaminants such as:

  • dangerous contaminants produced from current or prior property use
  • sickly looking or withered vegetation
  • underground storage tank (UST) connection pipes protruding above ground

Level 1 Toxic Report Costs – these documents cost an average of $1,800 to $3,000.  However, should a report be returned as unfavorable, the statement “Further investigation is required” will be printed on the document.  Be sure that you read this report in its entirety and make sure this statement is not printed on it.

You must obtain a Level 1 Toxic Report before purchasing commercial property – a clean report means that there are no contaminants present which provides you with a safe harbor where the property is concerned.

Biz4loans is one of the premiere hard money loan brokers in the US.  We can usually locate commercial or residential hard money loans within 5 to 7 working days.  However, we cannot provide this type of loan for a borrower’s ability to repay the loan, credit, employment, or income.  Instead, the loan is secured by the value of the property or real estate that you are purchasing.

Whether you own a company that is interested in developing or expanding or an aspiring entrepreneur who is seeking the capital they need to start their business, you need to follow these four steps in order to get the capital you need.

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