Lance Falow, Partner of The Heathcote Group lends insight to current commercial market lending.

Recent events with Wall Street may affect everyone's ability to get commercial property lending money to some degree or another, but a typical financial world can offer these options. Banks have stopped lending and offering credit to all borrowers, even those who have never missed payments on previous loans. "This is only exacerbating the credit and liquidity problem in the market," says Lance Falow Partner at The Heathcote Group.

While commercial banks and life companies continue to dominate the limited volume of commercial real estate lending currently taking place, other lending sources are beginning to emerge to replace a portion of the liquidity formerly supplied by the now dormant CMBS market-Private Money Lenders."If you are tired of hearing "No" from the banks, a hard money loan may fit your needs or investment strategy perfectly," adds Falow.

Unlike traditional lending, which is largely defined by credit scores and the borrower's ability to repay, hard money loans are based almost entirely on the value of the underlying asset and the project strength. A conventional mortgage from a traditional source may take between 60 and 90 days to fund. A private money mortgage lender can usually complete a transaction within 7-to-10 days. Terms and requirements for these types of loans will vary from lender to lender.Hard money loans are a valuable option for many types of real estate transactions.

The Heathcote Group
The Heathcote Group lends money on commercial property and nonowner occupied residential property. The Heathcote Group buys defaulted mortgages and distressed property, both in New York and Florida.