| Traditional commercial real estate loans offer low | | | | between the need for a deal to get done and the |
| financing rates to well-qualified individuals and | | | | convetional, low interest-rate financing. While |
| projects seeking capital to buy, re-finance or place | | | | conventional rates hover between 6-7%, bridge |
| a lien on existing commercial property. The | | | | loans can cost as much as 12-16% based on risk |
| property types can range from hotels, | | | | factors. This sharp increase isn't usually felt for |
| restaurants, casinos and apartments to office | | | | long by most borrowers, who typically re-finance |
| buildings, factories, and even private homes held in | | | | within 12-24 months of receiving the alternative |
| commercial trusts or estates. With any of these | | | | financing.Finding a hard money lender can be a |
| property types, financing through banks or | | | | daunting task. Several good directory lists exist on |
| traditional lenders can be both lengthy and require | | | | the web, but many companies in the largely |
| a great deal of credit history and supportive | | | | unregulated field have been accused of scamming |
| income.If a borrower cannot meet these high | | | | potential customers and accepting upfront fees |
| standards, other options are available in a field | | | | for loans they never intended to fund. With these |
| commonly known as "hard money". In hard | | | | practices widespread, it is best to ask around the |
| money, less qualified borrowers can find lenders | | | | commercial industry to find a borrower that will fit |
| with higher rates who are willing to accept greater | | | | your needs.Rand Fishkin is a leading marketer in |
| risk. These lenders are also prepared to finance | | | | the commercial real estate financing field. He has |
| within a few weeks of receiving a loan application, | | | | been involved with web development, promotion |
| meaning that deals which cannot wait for | | | | and marketing for the past 10 years and in |
| conventional financing can be completed as | | | | commercial real estate since 2002. Rand is also |
| well.Hard money is also known as a "bridge loan" | | | | the Internet Marketing head for the Avatar |
| because it is most often used to finance the gaps | | | | Financial Commercial Lending Group in Seattle, WA. |