While most commercial businesses rely heavily on traditional financing, there are circumstances when they may look toward hard money lenders in NY and roll all their mortgages into a short term hard money loan. Why would this be beneficial to a business to do this? It may not be a matter of it being beneficial but rather of doing what is best for the business itself.
Finding the Right Backing
When it comes to rolling a traditional mortgage into a private money loan, it is important to make sure you choose the right one. That means you want to find the lowest interest rate and the best term possible. At the same time you need to keep in mind that most investors who take this step do so because they see the potential for the business venture to bring in a nice sum of money. Perhaps it would seem more financially feasible to ask the current mortgage lender to invest in the project, but this does not always happen thus the reason for finding a hard money lender in New York.
The Loan Process
The natural assumption is that your primary mortgage lender will be interested in any future projects you may consider for your business. Unfortunately this doesn’t always happen. In fact, if you have entered into an arrangement that includes a balloon payment and your business has been showing a loss, there is a possibility the lender will “call” the mortgage. Where does this leave your company if you are in the process of making renovations that will allow your company to once again experience a profit? When these circumstances await your company, and you know there is something you can do about it, there are other sources of funding.
Hard Money Lenders are There to Help
Although they may offer a shorter repayment term and charge a higher interest rate, your company may be able to turn itself around with the help of hard money lenders in NY. If you fit into either of the scenarios listed above, you are the kind of investor that private lenders are seeking. You have been unable to secure funding from traditional sources yet your company can turn a nice profit with some renovations or remain in business with just a little it of help.
Successful Use of a Rollover Mortgage
How likely is your rollover mortgage of achieving success? It depends how well you use the funds you obtain from your hard money lender in New York. Being free to do those renovations and make your company successful are the ingredients in success. Keep in mind private money lenders will not lend money on projects in which they do not have faith. You have shown your project has potential, so if private lenders see it is quite likely to can also create a success story for yourself. Once you prove yourself with a hard money loan, traditional lenders will be more open to providing you the funding you need to operate your business.