If you are looking for a loan for commercial real estate you had better be ready for some sticker shock. Although some banks are still lending, the vast majority have tightened their credit requirements so drastically, you may be forced to go to Hard Money in order to get the money you are seeking.

What is Hard Money? Typically not attached to credit scores, these types of commercial loans are equity driven. If you have lots and I mean lots of equity in a deal, you can expect to get a hard money loan which will require a minimum of 50% equity.

Ultimately, this means you own the commercial property outright and want to use your equity to finance something else. Perhaps you're in a tight spot because other properties need a cash infusion and there is nowhere else to go but to tap the equity in preforming assets. This type of gamble is where Hard Money lenders step in.