Commercial Lending Blog

Posted on Jan,05 2021
by Rich Salinaro

– $16,700,000 First Mortgage – Development Site – Bronx, NY

  $16,700,000 First Mortgage - Bronx Land H&O Capital Funding recently closed on a $16,700,000 first mortgage for the purchase of an approximately 59,000 SF site with R9A zoning and a C2-4 commercial overlay. The site is currently occupied by the purchaser, who had an option to purchase the site in his lease. Talk about being in the right place at the right time! The owner plans on flipping the property to a developer to take advantage of the huge amount of as-of-right build...

– Hard Money Loans Get Their Name Because Their Terms Are Hard to Negotiate or Approve

This month’s blog is going to answer one of the most pressing questions people have about hard money loans: why are they called “hard”? No, they’re not going to hand you a pile of concrete cash – Hard Money simply refers to the fact that the interest rates charged are significantly higher than with a traditional lender. These loans, while useful, are more costly to borrowers due to the higher rates and fees, however, there are a number of advantages to a hard money loan vs. a conventio...

Posted on Dec,01 2020
by Brenda Sigurdson

Hard Money Loan

Posted on Nov,10 2020
by Rich Salinaro

– $2,000,000 First Mortgage – Private School – Queens, NY

  H&O Capital Funding Closes $2,000,000 First Mortgage In this deal, the school sits on a large, valuable piece of land that has had a lot of interest from a number of well known developers. The school has no plans of relocating, but due to the size of the lot, there is a real opportunity to subdivide the property and sell off a portion in the future. Unfortunately for the school, there were not enough free funds in the budget to allocate towards investigating and possibly p...

– $350,000 Second – Mixed-Use Property – Queens, NY

  H&O Capital Funding Closes $350,000 Second Mortgage Second mortgages can make some lenders nervous. That was not the case for H&O Capital Funding, who had the experience and know-how to close on this mixed-use property in the Rego Park section of Queens. The borrowers came to H&O Capital Funding looking for a small 2nd mortgage so they could use the cash to close on another deal in Florida. The borrowers had a TOE closing for the end of October and they needed a le...

Posted on Oct,13 2020
by Rich Salinaro


Posted on Oct,05 2020
by Rich Salinaro

– $550,000 Blanket First Mortgage – Mixed-Use Property and Single Family Investment – Waterbury, CT & New Britain, CT

  H&O Capital Funding Closes $550,000 Blanket Mortgage H&O Capital recently closed a blanket $550,000 loan on two properties in Connecticut. The first property was a mixed-use building with 10 apartments and two stores in Waterbury, CT and the second property was a single-family home in New Britain, CT. The borrower had run into some issues with his previous lender on the Waterbury, CT property and needed a bridge loan to bail him out. He threw in the small single-family...

– Myths vs. Facts: Hard Money Lenders Perform Very Little Due Diligence

True or false: Hard money lenders look only at the property they are underwriting, and do NOT look at the investor? In short, the answer to that question is "false." For all lenders, even conventional lenders, the most important factor in any loan is the underlying asset to be mortgaged. This is especially true for hard money lenders. On a stabilized asset, with a good debt coverage ratio, a hard money lender will rarely, if ever, ask for any personal financials. The property secures the loan...

Posted on Sep,28 2020
by Brenda Sigurdson

Hard Money Loan

Posted on Sep,25 2020
by Rich Salinaro

– $750,000 Second Mortgage – Two 3-Family Investments – Queens, NY

  H&O Capital Funding Quickly Closes $750,000 Loan In this deal, the borrower needed to pull some cash out of two 3-family homes he owned as investments in the East Elmhurst neighborhood of Queens. The borrower needed to close on the purchase of a gas station in Detroit, MI with a TOE closing and needed the cash to complete the deal. There were small balance mortgages on the homes, so H&O Capital did a blanket second mortgage on both properties behind the conventional fi...

– $550,000 First Mortgage – 2-Family Investment – Queens, NY

  H&O Capital Funding Closes on $550,000 Loan The borrower in this deal was doing a favor for a business partner of his who ran into some financial trouble. The borrower agreed to purchase the home and lease one of the units back to his partner to allow the partner quick access to some cash. While a simple deal on the surface, there were a number of legal hoops that needed to be jumped through to make the deal happen. H&O Capital persevered and were able to get the deal ...

Posted on Aug,17 2020
by Rich Salinaro


Posted on Aug,05 2020
by Brenda Sigurdson

Hard Money Loan

– Myths vs. Facts: Hard Money Loans are Very Expensive

There is a lot of misinformation out there on Hard Money lending, and a lot of it comes from the way the loans are marketed by the competition. Many traditional lenders will advise against hard money loans because they are “too expensive” or supposedly have too many fees or additional charges attached. This is far from the reality of the situation. Typically, hard money loans cost more than traditional loans, however, they typically have shorter terms and the high interest rates encourage...

– Myths vs. Facts: Hard Money Lenders are Unregulated

Hard money loans are a great resource, but they are also one that is often misunderstood. One of the bigger misconceptions about this type of lending is that hard money lenders are unregulated or under-regulated, which increases the level of inherent risk for borrowers. The truth of the matter is that legitimate lenders are regulated, and they provide a reputable financial solution for alternative real estate investments that can’t benefit from traditional funding and home loans. Who Regula...

Posted on Jun,23 2020
by Brenda Sigurdson

Hard Money Loan

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