Hard Money and Bridge Loans
from Walker Commercial Funding
What is "hard money"? How does it work?In answering the question, "How does a hard money loan work?" we will set forth our definition of a hard money loan and propose a series of hypothetical situations where a hard money loan from Walker Commercial Funding will be useful. President and CEO Brian Walker says, "we have bridge funding and hard money down to a science....as long as we have the right paperwork and the client is cooperative, we can close a hard money loan in as little as 5 days."
A hard money loan is a short-term loan that is used for meeting urgent financial needs. The term of such a loan is up to one year and just like a long-term loan it is backed by real property (the collateral).
A hard money loan can also be called a "real estate bridge loan".
A real estate bridge loan (or hard money loan) is obtained as a temporary measure until either permanent financing is secured or the collateral is sold. A real estate bridge loan at a higher interest rate is also known as a hard money loan. You would seek a real estate bridge loan/hard money loan in one of the following scenarios:
You are in contract to buy a property and are pressured to close soon. You are still waiting to sell a property you own – the sale’s proceeds of which you hoped to use for the purchase. You don’t want to go through the hassle of permanent financing on the property you own just for a few months; a permanent loan takes a while to close and it is likely to include a hefty prepayment penalty. A real estate bridge loan from Walker Commercial Funding will allow you purchase the property you want while giving you the time to sell the property you own. (This situation can arise in a 1031 Exchange).
Your bank has just backed out of a loan commitment to you. You are supposed to close next week and the seller already has another buyer in case you can’t close. There is not enough time to go to another bank, and you could lose your earnest money. A real estate bridge loan from Walker Commercial Funding will enable you to close.
You are buying a property for conversion. No bank is willing to lend to you on this project. You need bridge financing to carry you through the purchase and the construction. A real estate bridge loan from Walker Commercial Funding is the perfect solution.
You are buying a run-down property to redevelop. No bank is willing to lend to you on this property. Here, too, you need bridge financing for the purchase and renovation. With a real estate bridge loan from Walker Commercial Funding you can seize the opportunity.
Your credit score has just been hit, and no bank is willing to lend to you. You need interim financing. A real estate bridge loan from Walker Commercial Funding will give you a chance to fix your credit and obtain a permanent loan later.
An opportunity has just arisen. You need to move fast, and no bank can provide the capital fast enough. A real estate bridge loan from Walker Commercial Funding will make your deal happen.
Your partner needs quick cash and wants to be bought out. A real estate bridge loan from Walker Commercial Funding will provide you the means.
The mortgage on your investment property is maturing with a ballon payment due shortly. You are not prepared to pay it off and risk foreclosure and damage to your credit. A real estate bridge loan from Walker Commercial Funding will preserve your credit and give you the needed time to sell or refinance.
Brian Walker -Walker Commercial Funding-2009
