HARD MONEY

Commercial borrowers often need a bridge loan to facilitate the financing of a property for a short period of time. A bridge loan (also known as a hard money loan) is a specially designed form of financing that is used when a borrower is expecting to sell a property quickly or refinance it within the near future.

Bridge loans are short term loans that are used until:

• You sell property which you are holding onto for a short
  period of time.

• You refinance your current loan with a traditional loan.

• Your credit or financial situation improves.

• A property that is under construction is completed.

Aspen Financial Partners, LLC offers bridge loans on a variety of property types. Use the expertise of Aspen Financial Partners, LLC commercial loan originators to determine the proper loan for your commercial property. Take advantage of the simplicity and speed of our programs to simplify the financing of your commercial property loan.

Dispelling the Myth’s About Hard Money (Bridge Loans)

The purpose of the information is to debunk myths and misconceptions about the hard money business, and to explain why hard money lending is a useful financing tool in certain situations.

Aspen Financial Partners, LLC is actively providing hard money for land A&D, residential construction loans, and other non-stabilized commercial projects. Each hard money deal requires a quick closing and the company is usually in a difficult situation, making it non-finance able on a conventional basis.

Here are some common myths and misconceptions about hard money:

Myth #1. - Hard money loans are named as such because they're hard to negotiate with a lender and the terms are hard to accept.

While lenders to hold relatively firm stands on their lending criteria with hard money, hard refers to a difficult project and/or difficult circumstances surrounding the transaction.

Every hard money request is unique and requires careful planning and underwriting in order to close a deal. There are several consistent themes running through the typical hard money request:

• Money is needed as quickly as possible, often within a week to two weeks.

• The borrower has little or no cash equity, and is unable to raise a reasonable amount.

• The borrower may have a troubled credit history, including personal and corporate bankruptcies and other litigation.

• The borrower has been trying to arrange the loan for several months, which may have fallen through several times.

• The borrower was simply misled by a disreputable lender or broker, but usually the borrower was stubbornly holding out for an impossibly cheap loan.

• The project has problems or questions, possibly dealing with environmental; zoning and/or approvals; location; litigation; feasibility; valuation, etc.

• There is no obvious exit strategy for the loan.

Myth #2. - Hard money loans are too expensive to make them worthwhile. The typical hard money borrower has unsuccessfully explored and exhausted all sources of conventional debt and equity. The pricing quoted by a hard money lender is typically appropriate for the given circumstances and properly matches the risk of underwriting the loan. While these hard money loans are typically issued with less desirable terms than conventional financing, these borrowers have typically exhausted all other options.

In conclusion while hard money lenders are typically tough and get straight to the point, they are knowledgeable and understand that a fast closing is of the utmost importance. To learn more about our hard money loans please give us a call and ask to speak with one of our Sr. Loan Originators at 1-720-228-4089.