August 1, 2018
Financing a commercial property can be a complicated process. Luckily, there are professionals out there who specialize in loans and financing for commercial real estate. So how exactly can these dedicated consultants help you in making your next commercial purchase a simple and successful one?
Why Work with a Specialist?
When you get a commercial real estate loan, it’s typically for a specific business entity, like an s-corporation or a limited liability company. Most times, these loans are mortgage loans that are secured by liens, or legal rights to the property, on the commercial real estate. The lien simply gives your lender some protection against the possible risk of you defaulting on the loan.
One big reason to work with a specialist on commercial property financing is that the process is different and more complicated than it is when you finance a residential property. Commercial real estate loans handle interest rates and loan terms differently than other types of loans, and in order to understand the commercial financing process fully you should always consult with a specialist.
Why Choose a Hard Money Loan
The main benefit of hard money loans is that they offer you a way to get the financing you need much easier than traditional loans. As long as you have collateral, you’ll likely be approved without having to worry about your credit rating or borrowing history.
Hard money loans are an even better choice if the commercial real estate property is in need of rehabbing before you can move in or resell it. Loan terms are relatively short, which makes hard money loans ideal for those purchasing commercial properties with the intention of flipping them within a year or so of the initial purchase.
Another benefit of hard money loans is that they don’t take much time to close. Traditional closing time can take 30-60 days, but with a hard money loan, you can close in as little as seven. This allows you to begin rehabbing the property or move your business into the building much sooner than with a traditional loan.
Want to learn more about hard money loans in Maryland? The professionals at Maryland Private Mortgage are readily available to assist you with financing your commercial real estate purchase and are well-educated in the mortgage process from start to finish. We can help make buying commercial property a quick and painless process. Contact us today for more information!
The Maryland Private Mortgage Lending Team