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Growing Your Commercial Real Estate Investment Business with a Hard Money Loan

Posted by Loan Closed

Growing Your Commercial Real Estate Investment Business with a Hard Money Loan

How Hard Money Loans Can Help Real Estate Investors Develop a Profitable Portfolio

Savvy investors looking to quickly build a successful commercial real estate investment business should consider a hard money loan as an option. When first starting out in the commercial real estate business, you may not have a significant amount of assets or may not yet meet all of the requirements banks deem necessary to qualify for a traditional commercial real estate loan. But you most likely own some commercial real estate property.

And the property that you already own is key. A hard money commercial loan comes from a direct lender, and your property is your collateral. Direct lenders do not have to deal with the stringent government regulations faced by banks, and thus are interested far more in the value and income-generating potential of the commercial property you already own than in your personal or business credit. Using your property as collateral can open up options that a bank may not be able to provide, offering you the opportunity to quickly take out a short-term loan which can be invested in another income-producing commercial property, generating profit for you in the process.

Hard Money Loans as Business Builders

But hard money loans aren’t just for beginning commercial real estate investors. While building a commercial real estate investment business, hard money can successfully be used not only as a route to profit for savvy commercial real estate investors, but also as a bridge loan, one that can help a commercial real estate business develop and grow to the point where it will easily meet bank requirements for commercial real estate loans. These bank loans, once obtained, can then be used to both repay hard money loans from direct lenders, and as a tool to complement the use of hard money loans in the attainment of commercial real estate through the continued use of your commercial property as collateral to boost business profit and revenue.

Collateral Can Be as Valuable as Credit

When you start out in the real estate investment business, and are first building your portfolio, you may be disheartened when you think that traditional routes are the only option if you don’t yet meet all the requirements and regulations necessary for funding. But there are alternatives, and they can be extremely valuable to you as a commercial real estate investor in both the short and the long term, as long as you know how to find them. With the proper income-generating collateral, hard money commercial bridge loans can be an excellent option for your business growth both at the beginning of your career and as your portfolio of commercial real estate property expands. Your collateral can be as valuable as your credit as you grow your business into a successful and profitable commercial real estate investment endeavor.

Get a Hard Money Loan to Grow Your Commercial Real Estate Investment Business

Avatar Financial, a direct commercial lender based in Seattle, WA, offers hard money loans and commercial bridge loans to borrowers nationwide (excluding Nevada), and serves urban and suburban markets with populations over 250,000. We offer hard money loans between $1 million and $10+ million, and our closing time averages between 2-3 weeks. Want your hard money commercial loan request to be reviewed quickly? Apply now!

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