Does Your Property Qualify For A Commercial Hard Money Loan?
Oct 05, 2016
3 Ways To Evaluate The Worth Of Your Property
Commercial hard money loans are very useful options for people who face rejections on their loan applications with conventional financiers. When you apply for a hard money loan with a commercial hard money lender in New York, there are no financials required – loans are based solely on the value of your real estate assets, and not on your credit score. Find out more about how hard money loans work.
But in order to qualify for the loan, your property needs have value. So, the first step in obtaining this kind of loan is to check the market value of your property and see if it is suitable for a commercial hard money loan.
Commercial Property Valuation
Usually, hard money lenders provide up to 65 percent of your current property value. So, it may be useful to try to estimate the value of your property and compare it against the money you’re looking to acquire.
It is important to get the latest estimate along with an interpolated value for the future months. An easy way to find out is to get your property appraised by a licensed evaluator who can set a price on your property based on existing market conditions.
Commercial hard money lenders in New York generally consider several important aspects when evaluating a loan applicant: capitalization rate, cash on value rate, depreciation, gross rent expectancy and multiplier, tax considerations and loan to value ratio among others.
Commercial Property Location
The location of your property is crucial because it decides the depreciation rate. Properties that are located in developing areas are always most suitable. Visit the city office, check out the development plan and consult a professional to know about the increase or decrease in the property price.
Commercial Property Ownership
You must be the owner of the property you pledge as collateral for a hard money loan. This means that you need to have solid documentation that proves that you are the owner of the property.
If the property in question is co-owned, you’ll require a legal document stating that the other owner does not have a problem in letting you mortgage it. Some hard money lenders do not accept properties held as joint ownership.
Riverdale Funding commercial hard money lenders in New York base any hard money loan solely on the value of property, and accept all credit scores and financial histories. If you think your property qualifies for a hard money loan in New York or surrounding areas, contact us today for an evaluation!