Commercial Hard Money Lender Serving the East Coast (NJ, NYC, CT, PA, MD, MA, NH, VT and RI)
At Northeast Lending Services I specialize in providing a variety of loans: Commercial Hard Money, Commercial, Intermediary, Mezzanine, Bridge, Construction and Short Term where my underlining business philosophy for each one is:
“A SHORT TERM REMEDY FOR A LONG TERM CURE.”
The term “Hard Money” can be easily misunderstood. Simply, it is a loan where the borrowers collateral or assets which establish a Loan To Value are not necessarily directly related towards the use of your requested dollars. Additionally, different than bank loans which usually take a long drawn out waiting period and requires a background check which assumes that everyone is guilty. A Hard Money Loan immediately addresses the basics and that is; collateral that can support the amount of dollars requested, the potential borrowers ability to make timely payments and finally a sensible exit strategy to pay off this short term loan. Once again, we are a vehicle that gives a borrower the assistance in creating a better financial future. Whether it is consolidating all indebtedness or just buying time for the borrower to get a better business footing, we are simply a “Short Term Remedy For A Long Term Cure.”
How long does it take to get a “Short Term Commercial Hard Money Loan” in NJ, NYC, CT, PA, MD or MA?
This is up to the potential borrower. If the collateral can be easily valued and the requested information can be readily available, our attorney can close within 10 business days. Remember, my primary objective is to quickly get you on the better path so you can achieve a more successful future.
What outside expense/documentation will I need to consider in creating this type of “Commercial Hard Money Loan”?
Usually when collateral is being used as financial support in obtaining a short term commercial hard money loan, we generally require an appraisal, title search and your last two year tax returns. It would be recommended that you obtain an attorney which should not be that costly. Usually our Term Sheet and Agreement will clearly spell everything out but we always want the borrower to feel protected.
- Our Attorney Fee: (which you pay for) will run around $1,200 to 1,500. It all depends on how complicated the short term loan may be.
- Broker’s Fees: are applied only when they bring us the loan. If you come directly to us without a broker, their is no fee for this service. Broker’s Fees have been looked upon as being excessive in many cases however, in my company we do not allow overcharging on these fees. As far as I am concerned, this is not a get out of jail free card. Depending on how many broker’s are involved the fees can run from 1 to 3 points. Each point represents 1% of the loan.
- Origination Fee/Lenders Fee: This charge is the expense which I have to go through to obtain a complete understanding to support your loan. Obviously, if I need to drive for an hour as opposed to six this will influence the fee. Also the amount of time involved in confirming your information all lead up to the fee I feel is fair to charge. These fees vary and will be discussed at the inception of your hard money loan request.
- Exit Fee or Prepayment Penalty: Sometimes a borrower wishes to pay off a short term hard money loan earlier than agreed to so a prepayment penalty exists. For example, borrower signs up for a 12 month hard money loan and guarantees 6 months (with an option of getting out after the 6 months period). Their is no penalty however, if he decides to get out before the 6 month period he is still required to pay the full 6 months of interest. The Exit Fee is a pre agreed fee where when the borrowed pays off the loan he gives the lender an extra fee at closing. This customarily takes place in a construction loan when a home sells for a price below expectations, one fee is instituted however if it sells above expectations, a higher fee is applied.