Commercial property types can range from apartment projects to office buildings and warehouses or just about anything in between. A Paper commercial loans offer the most conducive terms and usually just fractionally higher than owner occupied residential rates. The property can have no obvious deferred maintenance, historic building income must be available and borrowers/guarantors must appear to add strength and maintain a degree of consistency on paper.
Should one or all of these components not be present the perfect temporary solution is a private/hard money transaction available for both purchases and refinances. Although terms are fractionally higher than the A or A- Commercial lending counterpart private money provides the additional funds needed for repairs, renovations and also allows the additional time needed to establish historic income or increase borrowers/guarantors strength on paper.