Avatar's Blog
» Spruce it up for a commercial loan
Funny thing. Hard money lenders are a little like home buyers. They like to see that the place looks nice.
If you are looking for a commercial loan based on the equity in your real estate, whether from a hard money lender or the local bank, spruce up the place before taking photos and sending in your request.
Lenders look for something called 'obvious pride in ownership.' It is actually listed as a reason why a loan is approved in the closing documents! 'Pride in ownership' translates to a property that is likely to be well cared for by the borrower during the course of the loan. It is also an indication that the borrower cares enough about the property not to let the loan lapse, thereby losing that property to the lender. Lenders do not want the property - they want to lend money, get a reaonsable return on their investment and go on to the next deal. If they get the property back in a foreclosure, they are in the real estate business, trying to sell the property. And their money is tried up until it is taken care of.
