How to Get a Commercial Real Estate Loan with Bad Credit | Riverdale Funding

How to Get a Commercial Real Estate Loan with Bad Credit

Sep 19, 2016



Is your credit score low?  Or maybe your financial history, on paper, is not as strong as you would want it to be?  These two factors are telling but they certainly do not tell the entire story of you as borrower.  However, conventional lenders place a disproportionate level of weight on them in deciding whether to accept or deny your loan request. 

You Can Get a Commercial Loan with Bad Credit / No Credit

For those borrowers who do have bad credit and do not have a strong financial history, there is hope. There is a viable financing that can still get you the commercial real estate loan you are looking for. 

Commercial asset-based lenders, like Riverdale Funding, LLC do not base its decision to lend on a borrower’s personal financials and credit scores, but rather, on the value of your commercial real estate. At Riverdale, we do not believe that a lack of documentation that conventional lenders require, should stand in the way of you getting a real estate mortgage, and we do not hold your past against you. 

How We Determine the Value of Your Commercial Property

At Riverdale Funding, our expert staff utilizes two valuation options – an Appraisal report that is produced by an MAI appraiser and a Broker’s Price Opinion (BPO).   

Why MAI Appraiser Reports

We utilize the service of an MAI “Member of the Appraisal Institute” Appraiser because of their extensive experience in the valuation of commercial real estate and their in-depth knowledge of the market they cover.  An appraisal can offer a detailed valuation opinion based on historical data for the property and the area it is located in.  

What Are Broker Price Opinion Reports

We utilize experienced commercial real estate brokers who are local to the subject property, to offer a Broker Price Opinion.  The brokers that Riverdale Funding uses are licensed brokers who are also registered with the National Association of Real Estate Brokers and/or Realtors with the National Association of Realtors.  This report is less detailed and briefer than an Appraisal.  The BPO Riverdale Funding receives includes a suggested listing price and offers different values depending on the amount of time the subject property could sit on the market.  However, a real estate broker can offer their pricing valuation based on what they know is trending in the real estate market for a given geographic area.  Together, Riverdale Funding can conclude a solid value for a property being offered as security for a loan.

Getting You Accurate Property Estimates for Your Commercial Real Estate Loan Value

Riverdale Funding, LLC uses both of these evaluations to make sure we get the most accurate estimate of your property’s value, which will ultimately determine the amount of your commercial hard money loan. As a non-traditional lender, we offer you a non-traditional solution to your funding needs. Don’t let your credit or finances stand in the way of making a purchase, refinancing a mortgage, or improving your business. 

Call Riverdale Funding today to see if you qualify for a commercial hard money loan!