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Commercial hard money lenders can be used to finance all types of commercial properties. Whenever traditional sources of commercial finance fall short of fulfilling the loan needs of a commercial real estate investor or a business, a commercial hard money loan can be a right alternative. There a large number of commercial hard money lenders who specialize in different/unconventional and complex financing operations. Commercial real estate investors looking for customized and flexible terms will need to look for commercial hard money mortgage financing solutions.

Commercial hard money loans can be used to refinance or purchase commercial properties like apartments, office buildings, hotels, motels, and retail properties. In addition to just purchase or refinance mortgages, hard money lenders can also finance bride loans, construction loans, rehab and fixer-upper loans.

General Guidelines of Commercial Hard Money Lenders

The strict lending criteria used in loan underwriting by banks and commercial lenders exclude a lot of fine lending scenarios due to few shortcomings either in the property profile or investor profile or both.

Hard money lenders who specialize in financing commercial properties are more than willing to consider all mitigating factors when evaluating a borrower. Equity in the property is the number one factor that carries the most weight with these lenders. Credit and other criteria pertaining to the borrower are secondary when approving commercial loans.

Sufficient cash flow and debt-coverage ratio of the property along with significant untapped equity in the property can make the loan process a breeze when working with a commercial hard money lender.

Types of Commercial Properties Financed by Hard Money Lenders

Inspite of the recent turmoil in the commercial real estate segment, traditionally income yielding commercial properties are the best performing of all the property segments. This relative out performance encouraged a significant number of investors to enter commercial property investment. In general it is assumed office buildings are considered as commercial, but one will surprised by the vast variety of properties that make up commercial RE. Demand also has gone up for alternative and flexible financing sources like commercial hard money lenders all over the active real estate markets in the country.

• Offices: This is the most common property segment of the commercial real estate sector. Anything used professionally for commercial purpose ranging from a one-two room office rooms to big office marks that hold multiple corporate tenants. Depending on the local dynamics for this segment, the process of obtaining a commercial hard money mortgage for offices can be determined.

• Retail: Small neighborhood mom-and-pop shops to big malls in suburbs to everything in between like strip malls, supermarkets fall under this commercial RE segment. Issues of default in difficult economic times are quite common. In normal or growing economic climate, this retail segment is very much in demand. A decent portion of hard money loans for retail properties are increasingly financed by hard money.

• Industrial: Warehouses, factories, manufacturing facilities fall under the Industrial commercial RE. In order to mitigate the risk of dealing in such a niche segment , commercial hard money lenders for industrial properties look for borrowers with that particular vertical experience when lending.

• Hospitality: Restaurants, hotels, motels and other such facilities make up this commercial sector. These properties are also difficult to finance due to the logistics involved in operating these facilities. Investors or businesses with proven track record or substantial equity can approach a lender for a commercial hard money loan.

• Medical: Facilities like nursing homes,retirement homes, clinics, hospitals come under this sector of commercial real estate. Due to the high demand for these services along with their acyclical business, many hard money mortgage lenders will be interested in financing these properties.