Hard Money News

Commercial Loans: Don’t Just Play It Safe

In a commercial real estate market that is changing quickly as it faces a major credit crunch, commercial mortgage brokers and commercial real estate agents can exhale that breath they are holding. According to the latest Commercial Real Estate Outlook report of the National Association of Realtors (NAR) on December 19, 2007, “the fundamentals of commercial real estate remain healthy.” NAR chief economist Lawrence Yun states that while the credit crunch was impacting the market at the end of 2007, overall the year was already a record for commercial real estate investment. However, borrowers will not escape unscathed. “Tighter credit conditions will limit individual commercial real estate investment deals moving forward,” Yun states. Luckily, mortgage brokers in the know can step into that gap and keep those deals moving forward. How? With the alternative, short term high-interest commercial loans known in the business as Hard Money.

Like many mortgage brokers, Clark Capital Group, LLC President, Kevin S. Clark began his career in 1984 brokering residential seller-financed mortgage notes to investors; a few years later, he teamed with a licensed mortgage broker and began originating residential mortgage loans. But in 1988 he was introduced to a group of individuals that wanted to provide first mortgage loans to non-conforming, non-institutional grade commercial customers. With their deep pockets and Kevin’s expertise, they launched into the business of Hard Money. “It was a niche business that attracted me, and I saw the need—and I wasn’t offering just another “me, too” product,” Kevin states. “It was an underserved market in the commercial real estate arena and I saw the opportunity, frankly, to make a lot of money. I wanted to be involved in something unique, and I saw this as an area that I could put my stamp on.”

Kevin S. Clark created a multi-million dollar business brokering these unconventional loans and earned the nickname “Mr. Big Mortgage.” These high interest loans offer aggressive returns secured by commercial real estate—the most stable area, by far, of all real estate. Why would someone want to borrow money at 15% to 30% a year? A major reason is because it is less expensive than taking on a partner. The loans are short-term, much like bridge loans, so they provide businesses with quick solutions to temporary problems. These are niche loans targeting a specific billion-dollar group of borrower that need money fast. These loan requests don’t go the traditional mortgage route because they are considered “problematic.” Meaning the borrowers do not qualify for conventional lending, or they simply need a quick path to substantial cash profits.

Kevin S. Clark witnessed first hand how many commercial mortgage loan requests do not qualify for conventional loans. He saw billions of dollars just getting up and walking out the door, and seized the opportunity to use Hard Money Loans—and he’s reaped the profits. Kevin Clark eventually launched his own brokerage, Clark Capital Group, LLC, and also offers the website HardMoneyTraining.com for mortgage brokers eager to walk in his shoes and take advantage of this lucrative area of the brokerage business. Businesses interested in applying for hard money loans can find more information at his sites HardMoneyCentral.com and CommercialMortgageFinancing.com. Without a doubt, when it comes to Hard Money, Kevin S. Clark knows more than anyone else in the field.

The latest edition of Kevin Clark’s Hard Money training e-Book Making Money with Hard Money Commercial Mortgage Lenders: Tips & Tools for Getting Your Non-Conforming Commercial Mortgage Funded Fast! is available from HardMoneyTraining.com to any mortgage broker wanting to break into this area of commercial real estate. You’ll find every bit of Kevin Clark’s twenty years of experience in the field crammed into the book, and Kevin himself is always available for seminars and conferences if you need to know more.

There is no doubt that commercial real estate is the safest place to be in today’s rocky economy and the after shocks of the burst housing bubble. But Kevin S. Clark isn’t worried about today’s credit crunch. “Back when I began in the business, we had the banking debacle of the early 80s, so it was similar to today’s credit crunch, so it wasn’t that different than where we are now,” Kevin laughs. “And who was left in the rubble back then? The hard money lenders. They knew eventually the market would come back, just like it will today.” So why just break even in an industry when there are mammoth profits to be made? Money is out there—Hard Money. Let Kevin Clark show you the way.