1st Commercialsince 1979

1st Commercial is a division of Altod Corporation #C0911396 and is licensed by the California Bureau of Real Estate #01484655

1st Commercial Hard Money Asset Based Commercial Real Estate Loans


Q:  What, exactly is Commercial Real Estate?

A:  Commercial Real Estate can be used to refer to any dealing with real property in a business context. It could involve owning and leasing out office space, owing an apartment complex, or selling real property along with and as part of the sale of a business. It might be industrial or agricultural property. It could even involves residential properties like rental houses being held for income-producing purposes.


Q:  Should I consider a "Hard Money" (Private) real estate loan?

A:  Yes,  if you answer yes to one or more of the following criteria:

  1. Currently have poor credit or a poor credit history; such as, late payments, judgements, loan defaults or bankruptcies, or own property which otherwise will not qualify for a loan from a conventional lender; such as, vacant, non-conforming rental, commercial or industrial property, or
  2. You may have good credit but need money quickly for such purposes as an immediate investment opportunity, a tax-deferred exchange requirement or other situation which is time critical.


Q:  What are the qualifications to obtain a "Hard Money" real estate loan?

A:  You must have, or will have at the time of the transaction, some cash invested in the real estate. This is called "Risk Capital" or "Equity". Also you must be able to demonstrate your ability to make the monthly payments, and to pay-off (also known as "Exit Strategy") the loan being requested.

  1. In some cases an "Interest Reserve" may be deducted from the loan and will serve to prepay the interest for your loan. But in all instances the loan's "Exit Strategy" must be clearly defined.


Q:  What is LTV?

A:  LTV stands for Loan to Value ratio. It is one of the factors used when determining the maximum amount of your loan. LTV describes the amount of "Equity" the borrower has or will have invested in the securing real property at the time of the loan. Industry standards dictate the Loan to Value ratios of different property types. For instance office buildings qualify for 65% of their market value. Therefore, if the office building in question is valued at $1,000,000 the maximum loan this property would qualify for is $654,000. If the loan is to be secured by a 5+ unit apartment building then the maximum Loan to Value ratio will be 75% of its' market value. So, if the apartment building is worth $1,000,000 then the maximum loan it would qualify for is $750,000.


Q: How long will it take my loan to close?

A:  One - two weeks. However, there can be delays due to title issues, slow borrower response, etc.


Q:  How is the loan secured?

A:  All loans are secured by a Note and Deed of Trust on the real property being used as collateral.


Q:  What do I need to supply in order to close my loan quickly?

A:  A completed loan application or personal financial statement. And authorize 1st COMMERCIAL to run a credit report.


More questions?Contact us.