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All California Lending is one of the most trustworthy and experienced commercial lenders in California specializing in all types of commercial lending including hard money loans.
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Are you thinking of investing in a property in California? Looking for loan options? Then you can find a number of commercial lenders in California to assist with financing. However, before taking the plunge into the commercial loan world, you need to understand it thoroughly. Commercial lending is much different than that of residential lending. From how a property is valued and evaluated to how loan amounts are dictated, they are distinctly different products. You can find different types of commercial loans in California. Let’s have a look at it – Conventional Commercial Loans Conventional commercial loans are loans you might take from a bank. The terms are fully amortized, typically over 15, 20, sometimes 25 years. A large number of commercial real estate investors still invest on properties using conventional and fixed-rate mortgages especially the investors looking to buy an existing or occupied property with positive cash flow. The downside to these is that they often have hefty prepayment penalties, amortize over shorter terms and can call balances due if the income on the property drops. Commercial Bridge Loans Commercial bridge loans are a source for short-term capital which is mostly required for debt services until an owner refinances, sells, leases, improves or finalizes a property transaction. As these loans are for short-term, the interest rates are higher than the conventional commercial loans. Typically, the term period for bridge loans lies between 6 and 12 months. Although the rates are higher, they are typically interest only loans.
Commercial Hard Money Loans Hard money loans are one of the most interesting alternatives of conventional loans that are provided by individuals or companies other than traditional lending channels. You can find a number of trusted commercial hard money lenders in California like All California Lending. In the case of hard money loans the property is used as collateral for security. Such loans are mostly preferred by investors looking for quick money to purchase, refinance or renovate a property that may not be cash flowing currently. Hard money loans are more focused on the value and equity of a property rather that the credit scores or income source of the borrower. They can be interest only or fully amortized. SBA 7(a) and SBA 504 Loans Two different types of loans are there i.e. SBA 7(a) loans and SBA 504 loans that are backed by the Small Business Administration (SBA). Both of these loan types are meant for new and existing businesses that are looking for buying or refinancing commercial real estate. Usually, SBA 7(a) loans are used for working capital. However, these can be used for buying commercial real estate. SBA 504 loans are quite similar to that of SBA 7(a) loans except that the former does not have any maximum loan amount. SBA 504 loans can be used for up to 90% of the commercial property purchase price regardless of the deal size. Tip: Make sure you choose the right and reliable commercial lenders in California to avoid any future hassles!
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