Among the best scenarios for commercial hard money loans happens when the customer comes with an chance he knows he’ll make a large amount of cash on, must move ahead it immediately, and whatever the charges hard money loan provider charges. With this particular scenario the net income the customer can make will easily counterbalance the charges the customer needs to pay towards the commercial hard money loan provider.
Commercial Hard Money Loan – Scenario 1
For instance, we’ve lately labored having a customer which had an chance to buy a number of trucks for his business in a 50% discount. Total purchase cost around the trucks only agreed to be more than a million dollars having a value over $2,000,000. Around the commercial hard money loan the customer needed to pay 3% in charges to get the borrowed funds or $30,000, so that you can save more than a $1,000,000 of needed trucks for his business. He collateralizes the commercial hard money loan together with his building and could near the coast 3 days. So $30,000 in charges in order to save more than a $1,000,000…
Commercial Hard Money Loan – Scenario 2
Another similar example happens when a customer really wants to buy a property from the distressed seller in a substantial discount. Often the seller can’t wait 60 to 3 months to shut a standard real estate loan and rather must near the coast a couple of days or won’t provide the discount.
So repeat the rentals are well worth $2,000,000 however the seller has decided to $1,500,000 a $500,000 discount. The customer would obtain a commercial hard money loan at 60% from the purchase cost or perhaps a amount borrowed of $900,000 and pay say 5% or $45,000 in charges towards the commercial hard money loan provider. Therefore the customer would save $455,000 by benefiting from the chance. Within this situation most customer wouldn’t care (a minimum of much) about having to pay the commercial hard money loan provider their points due to how much money they create from the deal.
Generally these kind of scenario tend to be simpler to shut compared to personal bankruptcy/company changeOrfinancial debt consolidation type situation. Many commercial hard money lenders no more take a look at deals such as this.
Getting a cash loan in Singapore can be a solution you can have as long as you get it from the best money lender in singapore. Just ensure you understand the standard terms and conditions attached to your loan.