Commercial hard money is a label often used for private, property-secured financing of commercial real estate. It may fit an acquisition or renovation that needs a tailored schedule, but product names do not tell you whether a specific loan is suitable. Compare complete written offers against the property and exit plan.
What commercial lenders assess
Commercial underwriting can include current income, leases, vacancy, property condition, location, sponsor experience, and a proposed sale or refinance. A lender may value the asset as-is, after improvements, or using more than one method. Ask which assumptions drive the loan amount.
Confirm property and project fit
Do not assume a lender funds every commercial asset. Ask about its experience with your specific multifamily, mixed-use, retail, industrial, office, or other property. For a construction or major renovation project, check the budget, contingency, draw schedule, inspections, and completion requirements.
Compare complete terms
- Confirm the advance amount, cash contribution, fees, interest, and payment schedule.
- Review maturity, extension rights, prepayment provisions, and default terms.
- Ask whether the loan has guarantees or recourse to assets beyond the property.
- Check insurance, environmental, title, and valuation requirements.
- Test the exit against delays in leasing, renovation, sale, or refinance.
Vet the lender
Ask for recent comparable closing references, confirm who provides the capital, and check applicable licensing or registration for the transaction. Browse the public directory preview for potential lenders, then verify important details independently. Full directory access requires account approval.
Frequently asked questions
What is a commercial hard money lender?
The label generally refers to a private lender offering financing secured by commercial property. Loan structure and underwriting vary, so compare the actual terms.
What property types do commercial hard money lenders fund?
Coverage differs by lender. Ask whether it has funded comparable properties in your asset class, location, condition, and loan size.
What are typical rates and terms for commercial hard money loans?
Rates, fees, leverage, and maturity vary by deal and market. Obtain current written offers that include all costs and extension conditions.
How is commercial hard money underwriting different from residential?
A commercial lender may weigh leases, operating income, vacancy, property condition, sponsor experience, and the exit plan. The exact criteria depend on the lender and asset.
How do I verify a commercial hard money lender’s track record?
Request comparable closing references and confirm the funding entity, capital source, and regulatory status applicable to your transaction.
What is the difference between a bridge loan and a commercial hard money loan?
The terms can overlap. Bridge describes financing before a planned exit; commercial hard money usually emphasizes a private property-secured source. Compare the documents rather than the label.
What should I look for before signing a term sheet?
Review loan amount, valuation assumptions, fees, maturity, extensions, recourse, construction draws if any, and outstanding funding conditions.