What is Hard Money Lending? A commercial hard loan is a type of loan that is unique to asset-based loan financing in which real estate property is used as collateral. One of the premier providers of hard money business loans is GoKapital. The interest rates on commercial hard money loan tend to be typically higher than the rates charged on conventional property loans.
The higher rates are due to the greater risk involved and the shorter repayment period. The borrowers usually seek hard loans as the best financing options for property owners seeking cash against the value of their holdings. Hard money business loans come in handy during arrears on existing loans, or when facing the possibility of foreclosure or bankruptcy.
Types of GoKapital Hard Loans.
I. Commercial Mortgages. This hard cash loan package from Gokapital starts at a minimum of $50,000 to a maximum of $50,000, 000. The terms last up to 30 years depending on the amounts. It is provided to both owner and non-owner occupied properties. This loan is structured for different types of properties including retail offices, warehouses, and any other types of commercial real estate. It’s mainly sourced by borrowers who want to purchase a property, and those seeking cash for mortgage or to refinance their existing mortgage
II. Residential Investment Loans. This loan product starts at a minimum of $50,000 to a maximum of $10,000,000. It’s mainly structured for those who want to fix and flip a property i.e. rehabilitation. It also works well for buy-and-hold rental properties. We can lend this loan product on non-owner occupied residential properties with 1-4 units. What makes it one of the best hard cash loan products, is that there is LTV of up to 80% available. It also has no minimum credit score required. This is the most common hard loan product sought by our clients.
III. Investment Property Loans Program. This loan gets a same-day approval. It takes as few as 3-5 days after approval for you to be funded. It works well for a multi-family property, single family housing, commercial and even industrial properties. The lower loan threshold is $30,000 while the upper loan limit is $2,000,000. The loan term limits are between 6 and 36 months. This loan product has lien position 1sts and 2nd. The loan to value (LTV) stands at up to 75% of your current value of property. You can always get the computed interest rates on the loans by getting in touch with our client service staffers.
GoKapital Investment Property Loans 101. The hard cash loans rates are mostly influenced by the specifics of the loans such as loan to value (LTV), the length of the loan, overall perceived risk and location/condition of the property. As the premier hard loan lenders we are a better source of the capital that you need to be able to buy the property. Acquiring a rental property is one of the most popular forms of real estate investment. The arrangement is such that you have to raise at least 25% of the down payment since we do not advance 100% financing. One of the hard loans that are familiar with our clients is the refinancing hard loan for their investment properties.
Benefits of Gokapital Hard Loans
I. Real Estate as Collateral. Many businesses around Miami rely on real estate collateral when applying for hard loans through alternative financing methods. This is what makes it easy for us to avoid the use of tax returns and FICO credit score when computing your loan application. In the current volatile economy, most of those who apply for cash from hard loan lenders have low or even bad credit score. The eligibility of your loan application is computed against your real estate property. Once you present your estate documents, our team can calculate the loan to value and provide the capital that you need.
II. Faster Loan Processing. Unlike conventional loan application and processing, applying for a hard loan has a quick turnaround with the possibility of same day approval. The loan can be funded within 3-5 days faster with an approval of no more than ten days. This is mainly accounted for by the simplified verification process. Most of the commercial hard loan products take less than two weeks to approve and disburse. At GoKapital we are more empathetic to hard loan borrowers since we understand the nature of business. They know how much firms need the capital to keep the businesses functioning.
III. Accepts a Wide Range of Real Estate Assets. The traditional lending firms have a very narrow list of what they can accept as collateral. Once you present your real estate documents, the Gokapital staffers will simply assess the location, type and condition of your property then consider how much you are eligible to receive. We extend hard loan products to mobile home parks, apartment buildings, office spaces, retail stores, entitled land and investment residential properties. This makes it easy for anyone with any type of home to be eligible for at least one type of hard loan product.
IV. Good When Starting Out: For any business starting out in Miami, the easier way for you to secure the much-needed capital is to seek a commercial hard loan from us. That is because hard loans are an excellent starting point for a young investor who has equity on a piece of property. When starting out, commercial hard loan allow you to purchase property with little cash of your own. This enables you to build your portfolio and significantly expand your asset base. In turn, it makes it possible to transition to other types of loans.
Final Thoughts. For lots of persons and firms, their immediate asset is their property. What is hard money lending and how much value it offers businesses depends on their specific capital needs. It’s easy to access commercial hard loans for funding your business without having to present your proof of income. Being one of the largest commercial hard money loan firms we can help shore up your cashbook. If your firm is in need of a hard loan to boost its cash flow or make new acquisitions, why don’t you call us on 1-866-257-2973 or write to us in the chat or apply online in Gokapital.