hard money lender

Commercial Real Estate Advisor

Types of Commercial Property to Invest In

When investing in commercial real estate, you must consider a range of factors, including things such as the difficulty of owning and managing the property, the options that are available, and what you’re expected return on the investment would be.

Commercial properties have the potential to continue earning for you for years to come, however, you may be wondering which types of properties will work best for you. Let’s look at some of the most common property types to invest in.

Apartment Buildings                                           

Properties that have at least five residential units are considered commercial properties and are worth looking into as an investment. There are plenty of reasons that make apartment buildings a good option to consider, but the core tenet of these is that there will always be a need for housing. Simply put, everyone needs to have a place to live and there is almost always more demand than supply, but as with everything else in real estate, location is key.

Some other factors that make apartment buildings attractive investments include the ability to raise rents in most years, helping to offset increasing costs and/or increase profit. Apartment buildings can also work well as tax shelters, and they …

Commercial Real Estate Advisor

Why Is Commercial Real Estate a Good Investment?

Choosing the right investment vehicle can prove to be quite the challenge. Everyone has their own opinions about what type of investments are best and which will be the most lucrative, the easiest to manage, the least risky, etc. And, with all that handy insight and advice, how could you possibly narrow it down? Well, that starts by taking the time to explore the options yourself, learn what each offers and then decide what combination of investment vehicle and strategy works best for you.

In this blog we’ll take a brief look at commercial real estate, including what makes it a good investment and why so many people choose it.

Return On Investment (ROI)

One of the biggest benefits of commercial real estate investing is that it garners a much higher ROI, on average, than other investments, even when compared to residential real estate. When the deals are bigger, so are the returns. Just like how people are always going to need housing, people will always going to need a space for their business. Covid may have tweaked some of the rules, but it didn’t rewrite them.


Another big reason people choose to invest in CRE is because it …

Commercial Real Estate Advisor

How to Find a Hard Money Lender for Your Commercial Real Estate Investment

Once you decide that hard money is the way to go, the next step is to find the right lender for you. Hard money loans can be useful tools for a real estate investor, however, not every lender will be a fit for your investment. As we all know, when you find a deal, you need to move quickly, but don’t let that need for speed discourage you from performing some basic due diligence on the lenders you contact.

Step One: Stop Comparing Hard Money Lenders with Traditional Lending Sources

The first thing that you have to do is stop comparing the rates and terms a conventional lender offers to the offers you will receive from a hard money lender. Hard Money loans are almost always riskier for a lender, and the rates and terms will reflect that. If you have perfect credit and can afford to wait 90+ days for a traditional loan, then a hard money loan is not right for you.

Step Two: Use Your Resources

So, where are you going to find a hard money lender? You’ve got a few options:

  • Professional networking
  • Local Real Estate Attorneys
  • Google search
  • Social media
  • Referrals/word of mouth

Find a …

$1,300,000 First Mortgage – Freemason owned Mixed-Use property – Brooklyn, NY


$1,300,000 First Mortgage – Freemason owned Mixed-Use Property- Brooklyn, NY

This was another repeat borrower for H&O Capital Funding, and they coincidentally were also a fraternal order of Freemasons based out of Brooklyn.  The borrowers had an existing first mortgage with H&O for $750,000 and needed to clear some cash for property improvements. The retail space at the property is fully leased to a small grocery store and the Freemasons occupy the upper 3 floors, where they want to do the renovation work.  Although it took some time to get all board members to sign off on the loan, H&O was still able to close the loan in 3 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.


$450,000 Second Mortgage – Masonic Temple – Brooklyn, NY


$450,000 Second Mortgage – Masonic Temple – Brooklyn, NY

A fraternal order of Freemasons based out of Brooklyn, NY came back to H&O Capital Funding looking for a bit more cash to help clear off some debts that had accumulated during the pandemic. The borrowers, who rely on the proceeds from renting out the temple for various events, have not been able to host an event since the pandemic began. There really wasn’t a good option to quickly raise some funds to take care of their outstanding debts, aside from a membership assessment, which they desperately wanted to avoid. Based on their current relationship with H&O Capital they reached out looking for a small second mortgage to keep them afloat until things open up again. Despite a few title insurance issues,  the loan closed in less than a month.

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 …

Fact: Hard Money Loans Could Be a Better Option

There’s a lot of misinformation and misunderstanding out there about hard money loans, but they can be a lot more effective than people think. The problem is that a quick Internet search will return tons of results with headlines like:

  • “What to Watch Out For”
  • “The Pitfalls of Hard Money Loans”
  • “Are Hard Money Loans Worth It?”

When you’re inundated with those as your first search results, it’s easy to dismiss hard money loans for your investing needs. With a bit more understanding, however, hard money could prove to be the ideal funding solution that you’ve been looking for.

When Are Hard Money Loans a Good Choice?

Real estate investors don’t always have the funds to match their drive and passion, yet finding people to invest with them can prove to be a challenge. If you’re in a position where you feel like you could be making a strong business move but you don’t have the means to finance your purchase, hard money loans might be a good choice. In fact, they might be your only choice.

What is it that makes these loans one of the better options? For starters, they’re quick. Most hard money loans can be closed …

Commercial Real Estate Advisor

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 conventional loan.

If It’s Hard, Why Bother?

In property investing of any kind, it can be a challenge to find financing outside of traditional sources. Unless you can fund all your own projects, you’re going to need help. For many investors, the best choice is a hard money loan.

The benefits to these loans typically outweigh the drawbacks. For starters, rather than focusing their attention on credit scores and personal financials, lenders base approval on the underlying asset itself and the likelihood that they’ll get their money repaid in full. Additionally, these loans are offered by private investors rather than traditional banks and lenders, which means they can offer more flexible terms, despite …

Commercial Real Estate Advisor

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, and the lender typically lends to an entity, rather than an individual or group.

This structure, however, does not mean that the Lender ignores whether or not a borrower can repay the loan and make timely monthly payments. For example, a loan on vacant land would likely be a scenario where some sort of personal financial data may be requested as the property itself would not be producing any income to cover the monthly debt service.

Terms and Due Diligence

The terms of the typical hard money loan are simple: The amount given to a borrower is based on the value of the property being used as collateral. Generally, terms are NOT based on …

Commercial Real Estate Advisor

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 Regulates and Monitors Hard Money Lenders?

They must have a member of the organization that has a valid and current Real Estate Broker License to function as a lender within the guidelines of the law. Any businesses claiming to offer these loans that aren’t registered with the state are not operating within the law and should be avoided at all costs.

In addition to the Department of Real Estate, hard money providers may also be registered or involved with other industry groups and professional organizations. Most lenders understand that they are in a higher risk industry, and therefore may need to offer their potential borrowers more incentive and assurances. They may belong to organizations like the National Hard Money Association or the …

Commercial Real Estate Advisor

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

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 …