Assisted Living Center Hard Money Loans are Offered by Assisted Living Center Hard Money Lenders

Hard Money Loans for An Assisted Living Complex

Hard money loans are available for assisted living complexes. (personal care homes). Perhaps you currently own an assisted living complex and need funds for improvements. Maybe a new gas station has come up for sale, but your current credit situation, or circumstances surrounding the property won’t allow financing through conventional conforming loan channels like banks and mortgage brokers. You may be a good candidate for a hard money loan.

Reasons for Applying for Hard Money Loan for an Assited Living Complex

  • Credit maxed out
  • Property in remote location
  • Property not of conventional construction
  • Value based on land alone
  • Value cannot accurately be determined
  • Potential income from property cannot be verified

You can find hard money lenders nationwide: private investors, mortgage companies, or banks that deal in hard money financing to help finance the purchase of the assisted living complex. If you deal with a hard money loan broker, be prepared to pay “points”: an up front percentage that probably will start somewhere around 3%. The assisted living complex itself will be the collateral that secures the loan, and lender may ask you to put up other assets to consummate the deal. Hard money lenders typically finance only a percentage of the purchase price of the assisted living complex— usually 65% to 75% (Loan to Value Ratio). Since the complex will produce income, a loan can be based on the value of the property plus its income producing potential. Interest rates might possibly run anywhere from 8% up; may initially be fixed, but later become variable.

If you have experience in assisted living, that is typically considered a plus. Be prepared to give the lender the following, in addition to color photos of the land and any buildings.

  • Location of the property
  • Date of purchase
  • Date of closing
  • Purchase price
  • Estimate of fair market value
  • Reason for applying for hard money loan
  • Verifiable gross income or expected income
  • Yearly expenses to be incurred on property
  • Appraisal if available

Disclaimer: The hard money loan calculators found on this website are offered only to estimate monthly loan payments of hard money Assisted Living Center loans. No guarantee is offered or implied as to their accuracy. Hard money Assisted Living Center loans are non conforming, they do not conform to the underwriting guidelines of Fannie Mae or Freddie Mac. Each private equity hard money lender has their own fee structures which may include points at closing and early prepayment penalties. Discuss all of the details of your particular hard money Assisted Living Center loan including all costs and fees with your selected hard money lender.

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