Commercial Loans
What are commercial hard money loans?
Commercial hard money loans are short-term financing solutions designed for investors and business owners seeking to purchase, refinance, or improve commercial properties. Unlike traditional bank financing, these loans are based primarily on the value of the property itself rather than the borrower’s credit score or income history.
Common property types include retail centers, office buildings, warehouses, mixed-use developments, and multi-family properties (5+ units). Issued by private lenders or specialized lending firms—like AFI Private Lenders—these loans offer speed, flexibility, and approval based on asset value rather than lengthy institutional underwriting processes.
With fast closings and adaptable structures, commercial hard money loans are ideal for time-sensitive opportunities or situations where conventional lenders may not be an option.
Key Characteristics of Hard Money Loans
Asset-based approval: The loan is secured by the property’s value and potential, not solely the borrower’s financials or credit history.
Shorter terms: Most range between 6 and 36 months, ideal for transitional or value-add projects.
Higher interest rates: Typically 9% to 14% to reflect the increased risk and speed of funding—something to review carefully with your lender.
Fast funding: Approval and funding can be completed in a few days to a couple of weeks, depending on deal complexity.
Typical Terms
When to Consider a Commercial Hard Money Loan
These loans are particularly beneficial for:
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Investors acquiring or repositioning income-producing properties
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Borrowers with urgent closing deadlines or distressed property situations
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Owners needing bridge financing before securing long-term conventional loans
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Developers seeking capital for construction or renovation projects
Why Choose Action Funding?
At Action Funding, we combine deep market knowledge with a relationship-driven approach. As a family-owned lender, we pride ourselves on understanding your vision and structuring financing that aligns with your investment strategy.
You won’t face impersonal bank bureaucracy here. Instead, you’ll work directly with our experienced team for clear, timely, and customized solutions. Our process is streamlined, transparent, and built around speed—so you can seize opportunities when they arise.
Whether you’re acquiring a retail strip center, renovating a warehouse, or developing mixed-use space, our commercial hard money loans are designed to get your project moving quickly and confidently.
Frequently Asked Questions
A commercial loan is a financing product designed for business or investment purposes, rather than personal use. These loans are typically used to purchase, refinance, or develop income-producing properties such as offices, retail centers, warehouses, or multifamily buildings.
Commercial loans are available to business entities (LLCs, corporations, partnerships) and sometimes to individuals purchasing non-owner-occupied investment properties. Lenders generally look at borrower experience, credit strength, property income, and collateral value.
Common property types include:
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Office buildings
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Retail centers and shopping plazas
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Industrial and warehouse spaces
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Multifamily (5+ units) properties
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Mixed-use developments
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Hospitality or self-storage assets
High interest rates, falling property values, and tighter banking regulations have made commercial lending riskier. Many lenders are focusing only on low-risk, stabilized assets and stronger borrowers until market conditions improve. However, Action Funding takes a wholistic approach and will base loan amounts/terms off of the value of the property, not the use type.