In commercial real estate, hard money loans and business entity construction loans both use the real estate being financed as collateral, but they solve different funding problems. Here’s a table quickly showing those differences: Hard Money Loan Business Entity...

Yes, commercial real estate hard money lenders will check your credit score when they underwrite your loan application. A hard money loan is indeed more asset-based compared to a traditional bank loan, so your credit score is usually not the main factor that...

There’s a misconception that hard money loans are easy to qualify for. That probably comes from the fact that, unlike traditional banks, hard money lenders are asset-focused and much more deal-oriented. They don’t ask for the long list of borrower documents and don’t...

If you need short-term capital and cannot wait months for a bank to review your commercial property loan application, hard money can get you to the finish line. But it will only work in your favor if you use it for a defined purpose and have a solid exit plan, because...

Hard money and traditional financing (sometimes called soft money) are not rivals: each one has its place in commercial real estate. The right choice depends on your situation. Are you: Buying a property that needs major repairs? Trying to close before another buyer...

At first glance, hard money loans look more expensive when you compare them with traditional commercial real estate loans. It’s true that: The rates are usually higher The terms are shorter The lender may require more equity in the deal All that said, hard money isn’t...

Because of how tough the market has been in recent years, CRE investors had good reason to look beyond traditional lenders: according to CBRE data, banks accounted for only 18% of new CRE loan originations in Q3 2024, while alternative lenders (including debt funds,...