Commercial Lending
for San Francisco, San Mateo, Sacramento, Los Angeles, and All of Orange County, CA

Commercial lending hard money lender or bridge lender programs

 The definition of "hard money commercial lending" when referred to in real estate financing is essentially a non-bankable loan. The name hard money commercial lending is frequently interchanged with "no-doc" or private loans. For a hard money commercial lending loan, the underwriting decisions are based on the borrower's hard assets (real estate). Hard money commercial lending loans typically close relatively quickly. Saxe Mortgage is the leader in the Bay Area - San Francisco for hard money commercial lending (NO-DOC / Private lending).

Commercial lending hard money lender and bridge lender programs are similar to traditional hard money in terms of loan-to-value requirements and interest rates. A commercial lending hard money or bridge lender will usually be a strong financial institution that has large deposit reserves and the ability to make a discretionary decision on a non-conforming loan. These borrowers are usually not conforming to the standard Fannie Mae, Freddie Mac or other residential conforming credit guidelines. Since it is a commercial lending property, they usually do not conform to a standard commercial lending loan guideline either. The property and/or borrowers may be in financial distress, or a commercial lending property may simply not be complete during construction, have its building permits in place, or simply be in good or marketable conditions for any number of reasons.

Some private investment groups or bridge capital groups will require joint venture or sale-lease back requirements to the riskiest transactions that have a high likelihood of default. Private investment groups may temporarily offer bridge or hard money, allowing the property owner to buy back the property within only a certain time period. If the property is not bought back by purchase or sold within the time period, the commercial lending hard money lender may keep the property at the agreed price.

Hard money commercial lending verses traditional lending

Traditional loans from banking institutions rely heavily on borrower’s income, credit, tax returns, etc., as opposed to a hard money commercial lending loan's primary reliance on the hard real estate asset. Along with requiring substantially more documentation, conventional lenders have minimum credit scores (typically low 700 Fico and above) as opposed to hard money commercial lending loans that are underwriting on the collateral as opposed to the borrowers’ credit. Along with different underwriting standards, loans on conventional commercial lending loans can take months to close; hard money commercial lending loans close much quicker. The final important differentiator between hard money commercial lending financing and conventional financing is the interest rate. Since there is more risk in a true collateral based loan, the interest rates are higher than a conventional mortgage.

How to know if a commercial lending loan is right for me?

There are numerous circumstances in which a hard money commercial lending loan is the best option for a client.

1. Borrowers with impaired credit 
   
2. Tax Liens/judgments/unpaid utility bills, etc.
   
3. Partner Buyout
   
4. Owner occupied properties 
   
5. Time constrained borrowers
   
6. Foreclosure avoidance
   
7. Foreign nationals
   
8. Complex loans with multiple pieces of collateral
   
9. Deferred maintenance

If you are a business owner and are seeking commercial lending for a hard money loan, or are just seeking advice on real estate financing, either personally, or for your business, we welcome you to contact the team at the Saxe Mortgage Company. We're proud to provide commercial loans to businesses throughout San Francisco, San Mateo, Sacramento, Los Angeles, the communities surrounding Orange County, CA and the San Francisco Bay area.