One of the major benefits of commercial hard money is that you can apply for it even if you have poor credit score. Under this type of loan, your credit history and score are virtually irrelevant. Your chosen hard money lender will not be interested in checking your credit history considering the fact that the loan is already guaranteed by your property. In addition to that, commercial hard money loans are also beneficial with their low loan to value ratio. This ratio represents the ratio of the loan amount to the collateral’s value. In most cases, the ratio is represented by 60% to 70%.
Another impressive benefit of commercial hard money loans is that these allow you to borrow funds mainly designed for renovation expenses. Note that the majority of investment properties have high equity potential. However, an average home or commercial building buyer is frequently discouraged by the somewhat unpleasant condition of the property in question. Commercial hard money lenders often produce a margin which allows borrowers to be capable of finding, acquiring and renovating their properties. It provides you with the ability of financing the purchase and repair of property. This is a good thing especially if you are a business owner who desires to borrow funds that can help make your commercial space even more attractive.