Are there Private OR HML for commercial

Where do a Find a Private or HML for commercial property… I have a property in mind that I will try to acquire in an auction, and would like to use Private or HML… My plan is to purchase at a certain price (I have my limit set for acution) It is in an excellent prime location…
Please direct me…

There’s a magazine called Scotsman… that has list of just about every lender in US…

The list Speedy Word spoke of is available at and there are a limited number of HML’s there. Most, if not all, of these lenders require you to use a broker or loan officer to access their services.

Have you tried the Hard Money Lenders link on this site?

Yes, hard money is available for commercial property transactions—rehab, purchase and refinance…


Scott Miller

There are numerous commercial hard money lenders available. Most of them have no problem getting you money quickly, if the property is bought right and it is an income producing property (this means no raw land–most HML’s are staying far away from raw land deals).

But, as with anything be very careful when looking for a lender. There are some out there that aren’t that reputable and have scammed lots of money from investors.

Patti Porter

Hi Patti,

Thanks for your reply to my other post. I appreciate the advice. When you say that lenders are scamming money out of investors - can you elaborate?


Some are looking for upfront fees that they take and never call back again. Some are not in this country and are looking to send you a check for more than what you need if you wire the remaining to their friend they owe money to, etc. Just be aware and make sure they are reputable and have a proven track record. Feel free to come back here and ask about any company you plan to deal with or Google them and find out what you can.

Thanks Rich!

Hypothetically- If I can find an apt building for say 60% of appraised value and buy with an HML would I be able to refi with a regular bank a few months later for 100% of the owed value?

Bump for the answer to Rich’s question…

DC- I’m definitely waiting patiently for that answer…if that is a workable solution I will be looking at all of the large buildings I thought I couldn’t do without a ton of cash in hand.

You can definitely use a HML for large buildings. I was pre-approved for $1.5 million dollar building with no money down, roll closing cost into the loan, and even roll the first 6 months of payments into the loan.

They will send you a preapproval letter after you find a deal. Then when they get the appraisal done you are all set, but ONLY if the appraisal says the property is as good of a deal as you thought.

Then after two or so months she will refy you out for 70%, 80% or even 90% of the appraised value with a cash out for the extra.

1,000,000 deal
600,000 purchase + rehab costs

Then refy for 80% and get a little less then $200,000 in pocket money.

If you find a deal just let me know. I’ll send you my HML contact information. She will only do large deals, no $50,000 SFH deals.

Iron Range,

Are your properties that you purchase with HML’s taking a loss for the first few months until they are refinanced? At 14-16% rate, 4-6 points up front, etc. how would these properties have enough revenue to to break even and not take a loss?

Also, wouldn’t it be difficult to find a lender that would give you 100% financing only 2 months of owning a property even if it was purchase at 60- 70% appraised value?

What would lenders look for when refinancing a property that was purchase only a few months back and was purchased using HML’s?

  1. Your 1st mortgage pmt isn’t for about 45 days. So all rent received and security deposits during that time are money for you to use.
  2. You can roll a few months of mortage pmts into the loan if you want to be safe.
  3. It would be difficult to find a lender to refinance if you did nothing to the property to increase its value. But you will be rehabbing which will explain why you are refinancing for more than you paid for it.
  4. The lender will be looking for the repairs that you did to rehab the property.

450,000 purchase that needs $120,000 in rehabbing to make it a $1,000,000 property. Equals 60% when you include closing costs.

So you purchase it and get draws to repair the property. Then once the property is rehabbed (2-3 months) then you go ahead and call the HML and they will refinance you into a fixed loan with a lower interest rate. If it is vacant and needs serious repair then you may want to get a good enough deal to roll the 1st six months of mortgage pmts into the loan.

You have a 60 unit property that consists of six buildings. Some will need less repairs then others. So make sure the least damaged gets priority status. Then begin to rent them out as the other more damaged buildings are getting repaired.

Iron Range,
Thanks for the info.

Yeah, I’m from CT and its hard to find a mobile home with no land for under $50k. :slight_smile: Stay over $50k won’t be hard.

Yes, it would be close to impossible to do a 100% refy after only 2 months of owning it (although I have done it twice). You get it for 60%, then you refinance at 70,80 or even 90%. But not 100%, that would be very difficult today.

$100,000 property for $60,000(purchase price + rehab + closing costs). Then refinance at 80% or $80,000 and get the $80,000 - 60,000 = 20,000 (minus refy closing cost) cash back.

What I was actually refering to in regards to the refy was 100% refy of the owed value. Not 100% appraised value of the building.

For example…

*Initial hard money financing:
purchase price: $500,000
rehab: $120,000
closing costs/carring costs for a few months: $60,000
TOTAL: $680,000

Building is now worth say $1,000,000.

How difficult would it be to find traditional financing for 100% of the owed value ($680,000 or 68% LTV) with a traditional lender after a few months?

Or, would you have to refy with a HML? If so, what kind of a rate would you then be looking at?


What is the threshold loan amount for your HML contact?


A traditional lender won’t have a problem refinancing with two months seasoning as long as it isn’t 100% of the appraised value. Refinancing is a little different then the initial purchase. The interest rate would depend if you refy at 70,80 or 90% of the appraised value for the refy.

If you owed 68% or $680,000 on a $1,000,000 property, then it would be pretty easy to refy the $680,000 into a fixed interest rate. If you didn’t want to pull any money out of the refy like your example then it will be no problem.

When you say it will be no problem are you speaking in regards to refinancing with a traditional lender or HML?