Commercial Hard Money or Commercial Bridge Loans:
International Financing Solutions & ACT Global Finance Specialized in an assortment of commercial funding programs. One of our more popular programs involves securing Commercial Hard Money or Bridge Loans.
Commercial Hard Money or Commercial Bridge Loans are typically short term loans to allow the borrower more time to re-organize or re-structure a permanent loan on their commercial property. These loans are usually good for 12 months to 36 months and are associated with high costs. The subject properties can be in the United States or elsewhere in the world.
The main determining factors for qualifying for such a loan are:
- The current "As Is" Market Value of the Subject Property
- The Exit Strategy ... How long the loan is needed and where will the money come from to pay back the loan.
These loans can be used to acquire a new business or a raw piece of land for future development. The key here is the Market value of the subject property in relation to the loan amount requested.
The Typical Guidelines for these loans are:
- Maximum of 50% LTV of the "As Is" Market value of the Subject Property
- Interest rate will be between 12% to 15%
- Total fees collected at closing will be between 7 and 10 points
- Loan Term is for 12 months with the ability to extend to 36 months
- Typical closing time is 30 to 45 days
- Minimum Loan amount of $5 Million USD
- Available on properties around the world ( with a few exceptions )
- Up front fees will range from $25,000 to $40,000 depending on loan amount and location of the subject property on the globe
Many times these loans are used to acquire the property with additional funds for infrastructure and planning expenses (applying for permits, entitlements, ect.). They can also be used by existing business to help get them over a financially tight business time period.
In order for our team to perform an initial review your project for such a loan, we will need the following information:
- Business Plan
- Pro forma
- Detailed ‘Use of Funds"
- Detailed Exit Strategy
- Copy of a recent appraisal which shows the "As is" Value of the property.
Please be sure to keep in mind that the "Market Value" will typically come in at 20% to 30% below the current appraised value. The funding source will make a determination on the Market Value after their analysts have reviewed the appraisal and completed research on similar property in the geographic region as the subject property.
Need assistance securing financing for your project?
Contact us at:
sallen11867@aol.com
Phone: 239-898-9281
Skype: sean.allen5
www.InternationalFinancingSoultions.com
