Commercial Real Estate Loans - Private Money

Because we represent an extensive network of Banks, Institutional Lenders, Private Investors and Non-Traditional Programs, we are able to provide you with some of the most competitive rates and most flexible programs available.

Private Investor / Hard Money Lenders provide Alternative Equity Based Financing

Private Investors offer another option if you are not satisfied with the terms that a conventional lender offers (or are unable to provide required documentation for the conventional, limited or stated programs). Private Investors (also known as hard money lenders) are often willing to take on more high risk loans and do not require as much documentation. The main difference between these lenders and banking institutions is that the funds come from a private individual or group of private individuals and not from a company's assets.

Terms usually include:

• $100,000 minimum

• Higher interest rates than with conventional, limited or stated programs

• Interest-only for a short period of time (12 to 36 months)

• Loan amount from 60 to 75% of the property value based on the income or quick-sale approach.

• 1 to 4 points to the lender

• Exit Strategy - how will you and the property qualify for stated or even conventional financing at the end of the term?

Most borrowers think of private and hard money loans as only for folks with bad credit.  Although some do fit this mold, most loans are made to borrowers with average to good credit.  So, why use private / hard money?

• Most private or hard money borrowers are those that cannot qualify for conventional, limited or stated programs because of other non-qualifying situations

• The property may qualify within an eligible property category even though it may have an established income producing history

• You, and the property, may qualify for conventional financing but there could be a time sensitive situation such as you wishing to buy property at auction, etc.

• The property may not now be producing income or could be in a construction / rehab phase.

• To save a property in foreclosure or to save an otherwise normal transaction

• Any combination of the above.

• When doing nothing or losing a transaction would cost the borrower more than borrowing through a private or hard money investor.

Even though private and hard money loans are based on low loan to value ratio's, don't be mislead into believing that all the investor wants is the property. They are looking for a return on their investment, not the headache and liability of owning real your estate. . The investor wants to reinvest these funds into another project.  Think of private and hard money loans as a stop gap or bridge situation, to get your and your company through a rough spot that allows you to jump on an opportunity today, when a conventional or even stated lender would pass.

As mentioned above, we will be asking about your future strategy and will work with you to show the investor your “specific exit plan” on how you will be able to pay off this private or hard money loan at the end of 12-24-36 month term.  Some ways by which private / hard money transactions can be refinanced later through a conventional, limited or stated program

• Engage a credit restoration service to help increase your personal FICO scores

• Maintain documentation to confirm the property's income and expense history

• Improve personal and business balance sheet net worth (ask us about asset sale leaseback

Thank you for considering Atlantic...

When you select us to act as your commercial mortgage broker, we will analyze your needs and will do research in order to find lenders that are suitable for you. In addition to saving you time and energy conducting a search for a lender, we are often able to secure a better deal for you. Our commercial mortgage success service fee is based only on a percentage of the amount that is approved and committed for funding. If we don't present you with a commitment for funding along terms we have discussed, we don't get paid. It's that simple.