Commercial Financing and Hard Money Loan Services
We are Los Angeles-based commercial loan brokers providing unparalleled service to borrowers in search of hard money loan services, conventional commercial loans, small business financing, and private money lending.
Small business financing
The Small Business Administration (SBA) loan program helps small to mid-sized business owners acquire commercial property without financial hassle.
However, 51% of the property must be occupied by the borrower’s business within one year of ownership to qualify.
Another option is forming a holding company from two operating companies. This company can then take the title to the commercial property. U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company to qualify.
The 504 Loan does not contain any restrictions or ceilings, but there are three criteria for eligibility:
- The company’s average net income cannot surpass $2.5 million
- The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals
- The net worth of the operating companies must be $7.5 million or less
To learn more about SBA-backed financing and whether you qualify for the 504 Loan, reach out to our team.
Los Angeles Commercial Lending
When we work with a borrower to secure conventional financing, we go to traditional lending institutions like banks, credit unions, hedge funds, or private lending institutions. These loans, secured by any kind of commercial real estate, come with a variety of terms, rates, and conditions.
We work exclusively for the borrower, searching for the best loan products across the nation and comparing financing options to make sure you get a loan that meets your short-term and long-term needs.
Whether you’re an experienced commercial borrower or delving into conventional financing for the first time, we provide free, no-obligation advice to help you make the best decision for your business’s future and to become a more informed borrower.
Hard Money Loans in California
A hard money loan is an asset-based loan where borrowers receive funds secured by the value of a real estate parcel.
Their interest rates are typically higher than conventional commercial or residential property loans. They are also rarely issued by commercial banks or other deposit institutions.
A hard money loan is similar to a bridge loan with similar lending criteria and costs to the borrower. The primary difference is a bridge loan often refers to a commercial property or investment property in transitions that don’t qualify for traditional financing. A hard money loan often refers to not only an asset-based loan with a high interest rate, but also a distressed financial situation. These include cases where bankruptcy and foreclosure proceedings are occurring.
Private investors make many hard money mortgages, generally in their local areas. Usually, the borrower’s credit score is not important, as the value of the collateral property secures the loan. Typically, the maximum loan to value ratio is 65-70%. If the property is worth $100,000, the lender will advance $65,000-70,000 against it. This low LTV provides added security for the lender in case the borrower does not pay and has to foreclose on the property.