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All about Commercial Real Estate Hard Money Loans

Commercial real estate is quite different from residential mortgage loans. It is more flexible and moves faster.

Financing is the key factor when deciding whether a project is worth the effort. There are many commercial real estate loans available, but we will be focusing on hard money loans.

If you are in financial trouble then you can look for real estate hard cash lenders to get a hard money loan.

The Definitive Guide to Finding the Best Hard Money Lenders near You Orchard Funding private hard money lender providing fix and flip, bridge and ground up construction loans

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Hard money loans for commercial real property are sometimes a last resort. Although they aren't great deals, they can help to save money in a difficult financing situation. 

Hard money loans have high interest rates and significant upfront costs. They can come in handy if you're facing the possibility of losing your commercial property.

Hard money loans are not available from banks or lenders as they are considered risky. These loans are usually only available for the principal loan on the property. This is not uncommon in commercial property.

Hard money loans are not like home loans. They only consider the sale price of a piece of commercial real estate. The appraised value is not what the party lending money will consider. 

If the property has to be sold within a few months of the loan being made, they will look at the likely sale price. This figure can vary depending on the condition of your property. It will usually be between 50 to 75 percent of the commercial property's appraised value.

A hard money loan, in other words, is a short-term loan that can be used to solve an immediate problem. A hard money loan might be an option if you're in financial trouble and have the time to resolve it.