Commercial Real Estate Financing
Private Commercial Real Estate Loans
When it comes to Commercial Real Estate Financing, Glassridge has access to some of the best rates and terms available in the industry. We can help you close on the private commercial hard money loans you require, and more importantly, do so in a manner that is quick, consistent, and dependable.
Due to the generally more stable & lagging nature of commercial real estate assets (under proper management), reasonably-priced commercial loans are broadly available for a wide variety of transaction scenarios.
Glassridge Commercial Real Estate Financing
The Commercial Property Loan rates & terms listed below are subject to change, and will not apply universally. These are just rough ballpark rates & an outline of the typical terms.
|Eligible Property Types:||Click here for a list of eligible property types.|
|Eligible Uses:||Acquisition, Refinance, and/or Renovations.|
|Loan Term:||1 – 30+ years.|
|Min. Loan Balance:||$500k (with some exceptions)|
|Max LTV (Purchase Price):||60% – 70%, with up to 80%+ for highly qualified repeat Borrowers.|
|Max LTV (Rehab Costs):||90% – 100%|
|Interest Rate:||6.25% – 12%|
|Rate Type:||Fixed and Variable Rates Available.|
|Origination Fee:||2% – 4%|
|Processing Costs:||$695 – $1295|
About Glassridge Private Commercial Real Estate Financing
Generalizing across the board for all our Commercial Real Estate Private Hard Money Loan options is difficult.
The first reason it’s hard to generalize is that we finance a variety of different types of commercial properties. Some of the types of commercial deals we’d love to help you get funded include:
- Apartment building loans.
- Office building financing.
- Retail and storefront loans.
- Industrial property loans.
- And more…
Ultimately, if you have a commercial real estate transaction you’re looking to buy or refinance, Glassridge can help you close on some of the best private commercial real estate financing rates and terms in the industry.
The second reason it’s hard to generalize across the board for all our Commercial Real Estate Hard Money Loans: they’re very scenario-specific.
Do you need a loan for 12 – 24 months, or a long-term permanent financing option? Does the property require any improvements or renovations that you’ll be using the loan to finance? Is it currently cashflowing with positive net? Are there opportunities to rapidly boost income or slash expenses?
All these factors will play a crucial role in the terms & rates available, whether you’re a newbie investor or highly qualified Borrower.
Complexities Of Commercial Real Estate Financing
Commercial real estate financing options can be difficult to navigate, and even worse to actually get closed. This is for a variety of reasons.
First of all, when it comes to commercial real estate mortgage loans, the big banks are involved. As a Borrower, this can be a good thing, since it means Private Hard Money Lenders have to compete with commercial bank mortgages, giving you access to better terms & rates.
On the other hand, this creates added chaos in what is already a complicated niche of the real estate finance world. Banks are very picky about what deals they will and will not fund, putting the burden of shopping the right financing on your shoulders as a real estate investor.
Most successful commercial real estate investors we work with are literally always shopping for better financing options!
Our goal is to make the process simpler, and to be open & candid about whether or not our Commercial Hard Money options can provide you a better value.
When To Use Private Commercial Financing
Like most types of Private Hard Money financing, Private Commercial Hard Money Loans are not right for every scenario. While you most likely can get funded on more deals more consistently by using all Hard Money and no commercial bank mortgages, this will not get you the best ROI. There are certain times to go with the bank, and other times when Private Hard Money is the better choice.
Specifically, here are some of the best scenarios when it makes sense to shop for Private Commercial Real Estate Loans:
- Deals when the bank says no. Banks are picky when it comes to funding commercial deals, whether it’s due to the Borrower or the deal itself, you can often find more flexibility via private hard money.
- Properties that require major renovations. Banks don’t typically like to lend on very distressed commercial properties, especially if they’re unoccupied & require significant improvements before collecting lease income. Hard Money Loans are perfect for this exact scenario.
- Deals that need to close fast. Banks, especially big banks, move slow on commercial transactions, because they need to get the approval from multiple layers of management. Your Hard Money Lender is ready to make decisions, handle due diligence, and get transactions closed fast, according to your schedule.
- Unusual transaction scenarios. Commercial properties can fall into all sorts of difficult situations, from inheritances, to divorces, to split business partnerships, to liens & back taxes owed, to sick or retiring owners, to receivership & foreclosures. Hard Money Lenders will be much more flexible than the bank when you need to deal with an unusual property scenario.
If you have a commercial transaction (acquisition, renovation, or refinance) that in any way fits the above scenarios, or you’d just like to shop our alternatives to see how we stack up against your current commercial financing, feel free to contact us directly, or fill out the quick, online 2 Minute Pre-Qual™ here.