Hospitals Hard Money Loans are Offered by Hospitals Hard Money Lenders
Hard Money Loan for a Hospital
Hard Money Loans are available for hospitals. You have considered seeking a hard money loan to build an addition because you still have a hefty mortgage on the present property. Perhaps another local hospital has come up for sale. You know that the
hospital business has great potential because people are getting older and living longer, and the need for care is increasing. You want to act quickly because there has been interest in the other hospital from local investors. You have been observing this property with the hope of acquiring it; you know its potential. At present you realize that you have exhausted your conventional sources of credit; your customary lenders are wary of this kind of business, saying that the cost of continually upgrading equipment at escalating prices, and more expensive salaries and benefits will cut into profits. You are a good candidate for a hard money loan.
Reasons for Applying for Hard Money Hospital Loan
- 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
- Cannot give a completely accurate estimate of what addition will cost
- Need to act quickly
You’ll need to find a private investor, mortgage company or bank that deals in hard money financing to help finance the purchase of the hospital, or if that deal falls through, add to your present property. If you deal with a broker, be prepared to pay “points”: an up front percentage that probably will start somewhere around 3%. Your collateral will be the hospital or the addition itself. The lender may ask you to put up other assets to consummate the deal. The lender will probably finance a percentage of the price— usually 65% to 75% (Loan to Value Ratio).Since the hospital or the addition to your present property will produce income, your loan will be based on the value of the property plus its income producing potential. Your interest rate may run anywhere from 8% up, and may initially be fixed, but later become variable.
Your experience in the health care business will be a plus. Be prepared to give the lender the following in addition to color photos.
- Address of the property
- Date you purchased property
- Estimated settlement date on property or completion of addition
- Price of property or addition
- Reason you are applying for hard money
- Statement and verification of gross income
- Expense statement
- Appraisal if available
Disclaimer: The hard money loan calculators found on this website are offered only to estimate monthly loan payments of hard money Hospitals loans. No guarantee is offered or implied as to their accuracy. Hard money Hospitals 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 Hospitals loan including all costs and fees with your selected hard money lender.