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Alternative Real Estate Financing - Hard Money

By David Schmidt - March 7, 2018

Alternative financing such as hardmoney lending has become a viable solution for some with this markets comercial lending contraints.  Commercial lenders are rapidly imposing more conservative guidelines on thier lines due to over supply and vast contruction taking place in several markets.  At this stage of the real estate cycle including value versus demand and cost to build versus supply alternative financing may be the only option.  The primary challenge is to find acceptable financing for more sophisticated borrowers as the market steadily increases into a utlimate leveling on value and supply.  Although family desks, debt funds and commercial lines may seem to be a alternative source of financing often they come with the same restraints that conventiional financing has and hence are not a solution and much needed time has been lost while wading through the red tape of underwriting.  Borrowers need to understand that oftern hard money financing that COHI offers in Colorado and Hawaii albeiit more expensive comes with speed and ease so that borrowers can get back to what they do best.