Hard money commercial loans should only be considered after the borrower has done an extensive amount of research with other sources such as banks and conventional lenders. Borrowers should submit their file to at least 10 of these traditional sources (or have an experienced broker run the file) before they consider hard money.
Why? Hard money is very expensive. Market rates are currently 15% interest only with 6 points on the front of the loan. And the term is normally short at 12 – 36 months. Read the rest…
