Do Hard Money Lenders in Commercial Real Estate Financing Require Appraisals?

 

Hard money lending has recently gained traction as a viable option for commercial real estate financing. That said, you should work with reliable and experienced commercial hard money lenders who provide a complete package that involves fast approvals, excellent customer service, and controlled expenses to maximize the return on your investment.

A common question that potential investors ask is whether hard money lenders in commercial real estate financing require appraisals. Let’s find out.

Determining the Value of Assets

Hard money loans for commercial real estate may not require a full appraisal by a certified company like mortgages or traditional loans. However, you always have the option of doing a valuation.

However, the lender would have to substantiate the value of the property. So, how do they do that if it isn’t appraised? The secret lies in hiring a broker who evaluates a commercial property’s value by considering building age, purpose, and declared income. 

 

That said, conducting a thorough appraisal before closing a deal can be worthwhile to ensure you don’t overpay for the commercial property.  

Working With the Right Hard Money Lender

You should always work with a reliable hard money lender who can go above and beyond to ensure you get the money you need to close a lucrative commercial real estate investment opportunity quickly. Working with an experienced lender will ensure that the entire lending process is easy and hassle-free. However, finding one can be pretty difficult.

Get Started with GCP Fund

If you’re looking for quick commercial financing for real estate, check out the services provided by GCP Fund. The New York-based hard money lenders can help you raise the capital required for your real estate project through asset-based lending, joint-venture financing, and short-term bridge financing solutions. Connect with them today!