310.591.8074
Financing Hard Money Loans
RIO Commercial assists developers/ investors with difficult to place loans. RIO Commercial, headquartered in Los Angeles, manages a database of hard money mortgage lenders that provide bridge loans for commercial property and raw land development, workouts, bankruptcy and foreclosures. Hard money lenders are expecting the property to be stabilized at a higher value within a one to three year period.
This is a very fragmented industry of small lenders and can be difficult as lenders are selective. RIO Commercial will identify one or two lenders most willing to finance your difficult deal. Be forewarned, hard money lenders are the lenders of last resort. This is a very expensive option and only makes sense for deals that have been turned down by other commercial lenders.
Typical Hard Money Financing Terms
| Maximum loan to cost or value: | 60% to 75% of quick sale value. |
| Term: | Generally 2 to 3 years with no prepay penalty |
| Amortization: | Interest only |
| Typical Rates: | 3 to 6 pts up front, 11% to 16% fixed rate interest. (15% to 20% per annum) |
| Recourse: | Typically recourse. |
| Closing costs: | Closing and due diligence usually takes place in about 30 days. Many lenders require a $5,000 to $10,000 fee before completing the underwriting. |
** These are NOT terms of any specific lender and merely a representation of terms most often used in the marketplace. Do not rely on the above as a commitment to provide any specific terms on any specific deal. **
Speak with a RIO Commercial Real Estate Financing Expert
Call 310.593.4738 or E-mail dmoran@riomortgage.net