Don’t Use a Hard Money Commercial Real Estate Loan for Commercial Property You Do Not Own
For property investors or owners looking to purchase a portfolio of commercial real estate there are a couple of different ways to approach this approach. Some might want to hard money commercial real estate loan their portfolio, and others might consider a bridge loan, a commercial hard money commercial loan, or even a bridge loan to purchase and rent the property. The terms of any hard money loan will be dependent on the property.
For example, a hard money commercial loan for apartment buildings may have a hard money rate of 6% interest only and run a term of 15 years, 60 months, or 90 months. Commercial mortgages are typically fixed rates with amortization schedules that are amortized up to 30 years. หนังคมชัด Many hard money commercial loans will have a rate and term that is 1 to 7 points higher than the prevailing rate on a traditional commercial loan. Sometimes investors who look at the higher rates and term of a hard money loan may choose to go with a bridge loan, defined as a commercial mortgage with a soft maturities of one to three years. Some hard money lenders will offer these as hard money bridge loans, so it is important to look at the actual terms of the loan as the terms of a hard money commercial loan can as deficits vary from lender to lender.
If you are looking for a bridge loan to buy and rent a commercial property, hard money commercial loans have a catch to them in that the prices are very high and the hard money interest rate is 20% – 25%. Having to pay the higher rates and terms can offset any advantage that hard money might have offered you. แหกหี It is also important to note that the costs of hard money commercial loans can very high. The rates and costs can be 20-50% higher than traditional hard money commercial loan rates.
In reviewing the hard money commercial loan options, there are ways to offset the higher costs. One option is to have your commercial mortgage documents witnessed by a state officer such as a Secretary of State, Secretary of the Treasury, Bankruptcy Commissioner, or a Commptroller of the Currency. Most states have departments that work with troubled mortgage loans and have the expertise to review documents. States such as California, Florida, and Illinois have earned reputations of clearing the books of hard money lenders involved in bad loans. หนังพากย์ไทย It is reasonable to conclude that if a hard money commercial loan ends up in foreclosure not because of a problem with the property but because of a mismanagement or malpractice issue that the lender and investor will not be protected by state laws. In this situation, the commercial property would be sold off to a foreclosure auction block and the foreclosure proceeds would go to the lender.
The laws for residential hard money loans are also in flux as a result of changes in the laws on such loans along with expanded requirements from lenders. As of January 1, 2009 some of the changes include restrictions on closing costs such as the 3% minimum sales charge to close, and a cap on fees. The loan fees are capped at $25,000, or $50,000 per 1 points in interest. By tightening the rules and restrictions, lenders are hoping to discourage hard money deals.
The calculating of interest on a commercial real estate loan can be a complex process, and depending on the complexity of the deal, it could take several months for closing strings to be negotiating the details. คลิปโป๊ญี่ปุ่น Once the interest rate has been negotiated, rates vary from one lender to another, and there are often three, five, or seven point differences on the rate. The difference in rate being about one point, or fifty basis points (1 75 IQ).
Hard money lenders dispute that they are doing anything wrong by setting tougher lending standards. The banks say they are simply exercising their rights under the law by only letting a 70-75% lien sale. They contend that a hard money loan results in a higher default rate because borrowers cannot pay their mortgages. Hard money lenders contend that using a strict standard would only result in a few loans end up in default, and they maintain that this is an unfair basis for setting the system.
The question that arise from this, is what percentage of loans should be considered high risk under the existing rules? Until a standard rate is established, the answer is nearly impossible to answer. A high risk loan is usually one that involves a complicated balloon payment, non-recourse buyout, defaulting guarantors, or some other environmental issue. Rates vary widely on these type of loans, often in order to reduce risk. Any hard money lender that anytime wants to give a hard money commercial loan will be willing to take the risk in order to earn a percentage point above their standard rate. ขี้เงี่ยน Most banks and lenders want to see a loan through to lock down the loan, and almost always do the deal before they will go beyond their Comes service set for the process.