Commercial Lending Blog — Page 4 of 11 — Houlihan & O'Malley Commercial Services

Myths vs. Facts: You Don’t Need a Down Payment with a Hard Money Loan

Brenda Sigurdson / May 20, 2020 / Leave a Comment

Those who are just starting out using hard money loans as a commercial real estate investor often wonder whether they actually need to have a down payment. Since hard money lenders are typically companies or private individuals, it’s a natural question to ask. However, there is a lot of misinformation surrounding loans from hard money lenders. Let’s take a closer look.

Hard money loans are asset-based, which means they utilize the property as collateral. Real estate investors often choose these types of loans because they are fast and relatively easy. So, will you need to have a down payment since they aren’t from a bank?

The Truth

You may have heard that you won’t need a down payment with these types of loans, but that’s very rarely the case. The answer, for the most part, is YES. A few hard money lenders out there will not require a down payment, but most of them do.

Typically, you will still need to put down between 25% and 35% when using hard money financing. This is because the lenders still want to minimize their risk and like to see borrowers with some “skin” in the game. In addition, when you provide …

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$1,900,000 Blanket Mortgage – Mixed-Use Development & Three-Family Investment Home – Multiple Locations

Rich Salinaro / May 4, 2020 / Leave a Comment

$1,900,000 Blanket Mortgage – Mixed-Use Development & Three-Family Investment Home – Multiple Locations

One of H&O Capital Funding’s repeat borrowers reached out in the midst of the shut down around the tri-state area due to Covid-19. The borrower had been working on the construction of a mixed-use property with two stores and eight apartments in Bayonne, NJ. The property was a single story retail property when he purchased it in 2016. Over the past 3.5 years the borrower applied for, and was granted, permits to add 3 stories to the building with 8 apartments in total. He received a loan at the time of purchase, but the note came due and the lender was no longer lending due to Covid. In a bit of a panic, the investor reached out to H&O Capital to secure a short term loan to allow him to finish the project and stabilize the building before he switched to a conventional loan. Because the as-is value of the project was a bit low to support the loan, the borrower used a property he owns in Yonkers, NY as additional collateral to get the deal done. Now the borrower has the time and funds to …

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Hard Money Lending Still an Option with H&O Capital Funding LLC

Brenda Sigurdson / April 7, 2020 / Leave a Comment

With the threat of COVID-19 on the rise, the world is facing trying times, and this has caused many lenders to start reducing their offerings or simply put a pause on lending altogether. However, we understand that there is still a need for quality lending to be made available, which is why H&O Capital Funding LLC is still active. Given the state of the economy, it is entirely understandable that many people have a need for liquidity today and we want to be able to help. We’ve worked to streamline our process, which will help move things along in what has become a tough environment to get deals closed.

Over the many years that we’ve been in business, we’ve been committed to providing help for our customers when they need it. Whether it is a commercial real estate investor in need of financing, appraisal services, advisory, or brokerage services, we have the knowledge and experience to help. If you are looking for hard money loans and need a lender, we could be the ideal solution for you during these strange days where so many other lenders have shuttered their services entirely.

There Are Still Opportunities on the Market

While the …

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Hard Money Loans – Myths vs. Facts

Brenda Sigurdson / April 2, 2020 / Leave a Comment

In our new series of blogs, we’re going to delve into the most common myths and facts behind hard money loans and how they work. Our goal is to help you dispel the myths and provide the information that you need to make an educated decision about your lending options. The first topic is one of the most common misconceptions about hard money lending:

Only People with Bad Credit Get Hard Money Loans

Because the terms of a hard money loan are more flexible, they may be a better choice for people who have less-than-perfect credit. However, there are a number of different people who can benefit from the quick and flexible funds offered by a hard money loan, including those whose credit is perfectly acceptable for other types of financing. In fact, on most lists of reasons to consider hard money financing, credit scores are at the bottom.

Who Else Can Benefit from Hard Money Loans?

In order to better understand just who can benefit from these loans, it helps to explore and understand their most common uses. These are circumstantial loans, after all, and it will be important to determine whether or not this is a good funding …

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$1,000,000 First Mortgage – 3-Family Investment – Brooklyn, NY

Rich Salinaro / March 16, 2020 / Leave a Comment

H&O Capital Funding Closes on $1,000,000 Loan

In this deal, the borrower came to H&O Capital Funding needing some quick cash for another project they were working on in Greenpoint. Knowing they had a lot of equity in their 3-family investment home next door, the borrowers came to H&O Capital Funding for a quick, easy closing. With plenty of value in the property, the loan was an easy one for H&O Capital Funding. Despite a few minor hurdles, the loan closed in under three weeks.

H&O Capital Funding has helped countless real estate buyers, sellers, lessees and lessors achieve their goals. Our legacy is unwavering commitment to the communities we serve. Houlihan & O’Malley Commercial Real Estate Services specializes in four distinct, yet overlapping, areas of business: Commercial Brokerage services, Private Mortgage services, Appraisal Services and Advisory services.

For more information on loans that we offer, visit our website.

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$1,000,000 First Mortgage – 3-Family Investment – Brooklyn, NY Read More »

Collateral Asset Valuation and How It Works

Brenda Sigurdson / January 31, 2020 / Leave a Comment

Nearly all lending involves some sort of collateral that the borrower allows the lender to place a “lien” on. A lien is a legal instrument of record, which ties up the collateral so that it may not be sold, refinanced or transferred without the debt first being paid. Depending on the type of loan you are looking for, some lenders will be more specific about what collateral they need, while others may just request a certain dollar amount, and accept it in any form of asset that you have available.

Essentially, collateral gives the lender recourse if you don’t pay. In hard-money lending, the collateral is real estate of some sort, whether it be land, residential, retail, etc.

Where Asset Valuation Comes into Play

When a non-cash asset is being used for a loan or line of credit, it has to be of a certain value. Offering someone the title on a $50,000 property in exchange for a $450,000 loan, for example, will not cut it. To get approval for the collateral that is put forth, it must be valued appropriately. Asset valuation is a simple process where the lender will determine the exact value of whatever asset you put …

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$540,000 First Mortgage – Warehouse plus Office – Hicksville, NY

Rich Salinaro / January 30, 2020 / Leave a Comment

$540,000 First Mortgage Loan – Warehouse plus Office – Hicksville, NY

Another repeat borrower for H&O Capital Funding after a successful transaction in 2016. In this deal, the borrower came back to H&O to refinance the same property he collateralized in the last deal. With occupancy that doesn’t exactly meet the Certificate of Occupancy, the borrower was having trouble getting a conventional loan and he needed to clear some funds for his business fairly quickly. As H&O was familiar with the property, all they needed was clean title to fund the deal and it closed in 2.5 weeks.

For more information on loans that we offer, visit our website.

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$540,000 First Mortgage – Warehouse plus Office – Hicksville, NY Read More »

$750,000 Blanket Mortgage – Two multi-family properties in Westchester

Rich Salinaro / December 19, 2019 / Leave a Comment

$750,000 Blanket Mortgage – Two multi-family properties in Westchester

This deal featured a repeat borrower, who is a young investor in multi-family real estate. The investor came to H&O Capital Funding looking for a loan across two properties in Westchester, one in New Rochelle and the other in Port Chester. The investor was looking for a quick cash out for another business venture he was looking to pursue.

Having had previous dealings with H&O Capital, the borrower knew of H&O Capital’s flexibility and ease to deal with, which was the reason he reached back out directly. H&O was able to close the deal in just three weeks.

For more information on loans that we offer, visit our website.…

$750,000 Blanket Mortgage – Two multi-family properties in Westchester Read More »

$2,000,000 First Mortgage – Office Property – Scarsdale, NY

Rich Salinaro / December 18, 2019 / Leave a Comment

$2,000,000 First Mortgage – Office Property – Scarsdale, NY

Quick Closing! The borrower had been working on a refinance with another Lender when it became clear they were not going to be able to perform. The biggest issue the borrower had was the timing, as the other Lender would not have been able to close until the new year. The borrower needed to close by the 20th of December to salvage another deal he was working on. In stepped H&O Capital Funding who guaranteed that they would close by the 20th of December. Not only did they close by the 20th, H&O Capital closed on the loan in just 8 days, beating the deadline by a full week!

For more information on loans that we offer, visit our website.

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$2,000,000 First Mortgage – Office Property – Scarsdale, NY Read More »

$1,800,000 First Mortgage – Mixed-Use Property – Manhattan, NY

Rich Salinaro / December 16, 2019 / Leave a Comment

$1,800,000 First Mortgage – Mixed-Use Property – Manhattan, NY

In this deal, the borrower approached H&O Capital Funding looking for a cash-out refinance to take some equity out of the property. The borrower needed to buy some time to find a tenant for the vacant restaurant at the property. The borrower previously occupied the restaurant himself, but is moving towards retirement and wanted to leave the restaurant business altogether. The cash out allows the borrower to aggressively market the space for rent, while giving him the funds he needs to cover the costs of managing the property, including it’s nine rental apartments. Despite the borrower’s previous lender attempting to stall the deal, H&O Capital closed on the loan in under four weeks.

For more information on loans that we offer, visit our website.

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$1,800,000 First Mortgage – Mixed-Use Property – Manhattan, NY Read More »

Myths vs. Facts: You Don’t Need a Down Payment with a Hard Money Loan

$1,900,000 Blanket Mortgage – Mixed-Use Development & Three-Family Investment Home – Multiple Locations

Hard Money Lending Still an Option with H&O Capital Funding LLC

There Are Still Opportunities on the Market

Hard Money Loans – Myths vs. Facts

Only People with Bad Credit Get Hard Money Loans

Who Else Can Benefit from Hard Money Loans?

$1,000,000 First Mortgage – 3-Family Investment – Brooklyn, NY

H&O Capital Funding Closes on $1,000,000 Loan

Collateral Asset Valuation and How It Works

$540,000 First Mortgage – Warehouse plus Office – Hicksville, NY

$750,000 Blanket Mortgage – Two multi-family properties in Westchester

$2,000,000 First Mortgage – Office Property – Scarsdale, NY

$1,800,000 First Mortgage – Mixed-Use Property – Manhattan, NY

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