Fast & Flexible: Commercial Hard Money & Private Money Loans
At Crestico, we’re more than just a mortgage brokerage—we’re your strategic finance partner when speed, flexibility, or unique situations demand smarter lending solutions.
When time is of the essence or traditional financing avenues are not a viable option for your commercial real estate project, hard money or private money loans can provide a crucial lifeline. At Crestico, we connect borrowers with access to these specialized, asset-based lending solutions, designed for speed, flexibility, and situations where the property’s equity is the primary qualifying factor.
Hard money loans (often used interchangeably with private money loans in this context) are typically short-term loans funded by private investors or specialized lending funds rather than conventional banks. The defining characteristic is that they are secured primarily by the value of the commercial real estate (“hard” asset), with less emphasis placed on the borrower’s credit score or income documentation compared to traditional loans.
Specialized Commercial Loans | Hard Money & Portfolio Options?
When Are Hard Money or Private Money Loans the Right Choice?
These loans are particularly well-suited for specific scenarios:
Benefits of Hard Money & Private Money Loans through Crestico
Flexible Underwriting
Less focus on traditional credit scores and income verification if the equity and exit strategy are strong.
Asset-Based Lending
Approval is heavily weighted on the property’s current or after-repair value (ARV) and the borrower’s equity.
Speed of Closing
This is the hallmark benefit. Funding can often be secured much faster than with conventional loans.
Ability to Fund Difficult Deals
Can provide solutions for properties or situations that banks might decline.
Short Terms
Typically range from 6 months to 3 years, aligning with short-term investment strategies.
Important Considerations
While offering significant advantages in certain situations, it’s crucial to understand the characteristics of hard money and private money loans:
Origination Fees & Costs
Upfront fees and closing costs can also be higher.
Higher Interest Rates
Interest rates are generally higher than conventional bank loans to compensate for the increased risk and speed of funding.
Short Repayment Terms
These are not long-term financing solutions. You must have a clear and viable exit strategy (e.g., sale of the property, refinance with a traditional lender) to repay the loan within the agreed-upon term.
Focus on Exit Strategy
Lenders will carefully scrutinize your plan to repay the loan.
