If you are running a business in Columbia, Charleston, Summerville, Rock Hill or their surroundings, and you find yourself unable to cover the costs of a construction or rehabilitation project or to honor a commitment to one of your major clients, it might be helpful to know that most entrepreneurs in your situation take commercial hard money loans in South Carolina.
These loans are usually available to businesses or individuals representing a business or corporation. They can be secured against commercial properties, residential investment properties or combinations of the two. The additional security is called blanket mortgage and is mostly required for high loan amounts.
Commercial hard money loans in South Carolina are usually offered by private individuals and mortgage companies. The terms and conditions vary from lender to lender, but the usual tendency is for the interest rates to be higher and for the eligibility requirements to be much more flexible and easy to meet than those of a regular mortgage loan.
How to Make Sure You Get the Best Deal
The fact that you need money fast and you do not have time to prepare a ton of papers in order to obtain it does not mean that you should jump at the first offer you get. You should review the offers of several lenders specializing in commercial hard money loans in South Carolina and pay special attention to the interest rate, the penalties applied for early payments, the loan to value ratio, the default rate, the APR, the negotiation options, the loan costs, etc.
For example, some lenders offer lower interest rates, but impose high prepayment penalties or processing fees. Others are not willing to work out a repayment plan in case you cannot keep up with the rates. You need to search the market and find the best offer for your particular needs.
In the process, do not forget to pay attention to the lenders’ reputation. While the higher interest rates explain why so many private investors and companies offer hard money loans, South Carolina, just like all the other states, has its share of loan sharks whose only interest is getting their hands on your property.
Of course, all it takes to avoid them is checking customer reviews online and reading the terms and conditions carefully, so getting commercial hard money loans in South Carolina is still one of the best solutions to finance your short term needs or projects.