Apartment Complex Commercial Mortgage Loans

HardMoneyLoanFinancingBlog offers low rates on apartment complexes, condos, and duplex buildings and more. We offer loans from $50,000 to over 10 billion. We have funded over $1 billion dollars in commercial loans around the world.

Whether if you need financing for an acquisition, refinancing a currently property, pull out some cash for renovation, or other reason, we can help. With our proven track record, and fast loan process we have been the #1 choice for several prestigious brokers, owners, and lending firms.

A hard money loan is a specific type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

Commercial mortgage rates can change daily and are dependant on asset quality and performance. Unlike rates from traditional lending sources, at HardMoneyLoanFinancingBlog our obligation is to you, the borrower. Since we are not limited by our affiliation with any one bank, we are able to present your loan to a broad spectrum of potential capital sources and secure the best terms and pricing that the market can offer.

We utilize several financial sources to get the right loan that meets your needs. We have access to hedge funds, wallstreet firms, private money, trust funds, insurance companies, joint venture capital, equity partnerships, bonds & cds, and more. We can provide funding for projects in all 50 states of the US, and as well as all overseas markets.

Our Main Goal is to close every deal for our customers with speed and flexibility. Each commercial project has its own requirements, constraints and timeframe. With that in mind, responsiveness is critical. We aim for solutions to precisely fit each situation: focused around your goals, you and your success.

What Is The Best Commercial Real Estate Loan?

This question came from Kiho Kim in Anaheim, California and, surprisingly, doesn’t have a straightforward answer.  When someone asks me that question, I know that they’re probably focused on one thing:  The loan with the lowest interest rate.  Unfortunately, in commercial real estate, this approach can end up costing you a lot of money.

When you get involved in commercial real estate, you become involved in a more sophisticated method of investing your money.  Commercial real estate and commercial real estate loans have a lot of “moving parts” and the approach that commercial lenders take is far different from those in residential lending.  When considering financing on a piece of investment property, you have to approach the process with ”commercial mortgage planning” in mind.

What is commercial mortgage planning?  It’s a process in which all aspects of the loan are considered in the context of the commercial real estate investor’s current portfolio, future portfolio goals, style of investment, and cash flow needs.  Let’s see how this works in a practical example and then use that example to further answer the original question in the first paragraph.

Which is the best loan?  A 3/1 ARM with a declining 3 year pre-payment penalty of 3%-2%-1%, a rate of 6.75%, a full amortization of 30 years, and a margin of 2.50% over 6 Month LIBOR, or a 10 year fixed rate loan due in 10 years, with a 30 year amortization, at a rate of 5.9%, with a Yield Maintenance prepayment penalty until 9.75 years have passed?

On the face of it, the 30 due in 10 is almost a full percentage point less in rate!  No brainer, right?  Let’s fill in a few more details and see if this analysis stands.

The investor contemplating the loan is an active real estate investor who purchases properties that have vacancies or month to month tenants that are slightly run down and in need of upgrades.  He holds properties until re-tenanted, renovated, and then sells them to generate cash for new purchases in a 1031 Exchange to preserve his buying power.

In light of this information, the 30 due in 10 would be a terrible loan.  It’s likely that such an investor would be ready to sell the property in the 3rd year to take advantage of the 1031 Exchange holding period and provide a stabilized leasing history to a new buyer.  He’d only face a 1% pre-payment penalty using the 3/1 ARM, something he could easily factor into his “costs.”  The fixed rate loan with its Yield Maintenance pre-payment penalty could literally cost him hundreds of thousands of dollars, depending upon market conditions, when he goes to sell the property.  In fact, it would likely contain a “lock out” clause completely preventing a payoff for up to 4 years.  That loan would have to be assumed by the new buyer and the difference made up in cash, limiting the potential pool of buyers for that property.

So how does this example answer our question:  “What is the best commercial mortgage?”  This way:  “The best commercial mortgage is the one that best fits the commercial investor’s short and long term goals, risk tolerance, investment style and the investment at hand.”  And as a side note, be sure to work with someone experienced not only in commercial loan brokerage, but who will take the time to consider all of the factors that could affect the current and future transactions.

You Can Get a Personal Loan Even With Bad Credit

If you have bad credit a personal loan may be tough to land with many commercial lenders. Having a co-signor could help you get approved for the loan. But, there are alternatives.

If you have a bad credit history and are in need of an infusion of cash to get yourself through an emergency or address a pressing need, you will probably want to consider taking out a bad credit personal loan. But who will lend to a person with bad credit? First of all, unless you have a cosigner with excellent credit, you can be sure that traditional lenders such as banks and credit unions are not going to give you a personal loan. So, you will have to either get a cosigner or find a private, non-traditional lender. Another consideration will be how much you need to borrow to get you over your financially tough time.

Preparation for Getting a Bad Credit Personal Loan

Whether you are going to use a cosigner or a non-traditional lender you have to prepare. Your first move is to figure your budget in terms of income versus your usual monthly obligations. Do you have enough left over to comfortably make a loan payment every month? Then you have to figure out how much you need. Do not ask for more than you absolutely need. You can go online and find loan calculators that will help you figure loan amounts. Next you need to pull your credit reports from the three credit reporting agencies, Experian, Equifax and TransUnion. Check for any discrepancies and fix them. This also gives you an idea of what lenders will think of you financially when they are researching your approval.

Documentation Needed for a Bad Credit Personal Loan

After you have reviewed your credit reports, you need to gather other documentation. You will need two forms of government issued identification. You will need proof of employment and salary (pay stubs or direct deposit statements), proof of residency (usually a utility bill with the same address as on your I.D.), and proof of a valid and active bank account (usually a checking account with direct deposit). When you get this documentation gathered, along with your credit reports and the amount you need, and how much you can afford to pay every month, you are ready. How much you need will tell you which route to take.

Finding a Cosigner for Your Bad Credit Personal Loan

Generally, if you need an amount in excess of $1500 you are probably going to need a cosigner. Your cosigner would have to present all the documents listed above that you have also gathered for yourself. The cosigner should be gainfully employed with a good salary and have an excellent credit history. The cosigner should be well aware that if you default on the loan for any reason it becomes his or her responsibility to make it good. It may be hard to ask a friend or family member to assume such a role. Having such a cosigner would virtually guarantee the award of such a loan, but you should not ask for anyone to be your cosigner if you know you are not going to be meeting your obligation. This will result in bad blood and ruined friendships.

Finding a Non-Traditional Lenders for Bad Credit Personal Loans

If you do not feel comfortable asking a friend or family member to be a loan cosigner and the amount you need is less than $1500, you could approach online lenders. Use your browser to search for personal loans and you will find scores of lenders willing to execute bad credit personal loans. As with any online transactions, make sure the website is secure and that your lender is reputable. All the documentation you will need is outlined above and the entire process can be done online. You can have your cash in as little as 24 hours. Whether you choose a cosigner or a non-traditional lender, you can get a bad credit personal loan.