Lending guide · First lien
Commercial hard money loans
Asset-based, short-term financing secured by commercial real estate — used when the property, the situation or the timeline does not fit a conventional lender.
In short
A commercial hard money loan is short-term financing secured primarily by the value and condition of a commercial property rather than by standardized borrower credit criteria. It is typically used for time-sensitive acquisitions, transitional assets and situations conventional lenders decline. Stokley Capital reviews these requests directly as a principal.
Hard money lending guidelines
Asset-based financing. We focus on the property's value and the owner's equity, not a credit score. Low credit does not rule out a request. Every deal is subject to underwriting.
- Annual rate
- From 11.5%
- Origination
- From 2% of the loan amount
- Term
- 6 to 12 months
- Payments
- Interest only
- Loan-to-value
- Up to 70%
- Lien position
- First position only
Third party closing costs are separate.
Every term sheet is different. Every deal goes through underwriting and has specific terms. These are guidelines, not a commitment to lend.
What makes a loan 'hard money'
The term describes how the loan is underwritten, not its quality. Hard money financing is asset-based: the property's value, condition and business plan carry the analysis, and the decision is made by a principal rather than through a standardized credit process.
In practice that means fewer boxes to check and more emphasis on whether the plan for the property makes sense.
Situations where borrowers seek it
Borrowers turn to asset-based commercial financing when the calendar or the asset's condition rules out conventional debt.
- A closing date a conventional lender cannot meet
- A property with occupancy, condition or income that fails conventional tests
- A maturing loan with no takeout in place
- A distressed or off-market purchase
- A partner buyout or an urgent recapitalization
What to weigh before you borrow
Short-term asset-based capital is a tool for a defined period, not a permanent capital structure. Before you sign, be clear about the exit — the sale, refinance or stabilization that repays the loan — and about what happens if that exit takes longer than planned.
A capital provider who understands the operations should be able to discuss that scenario openly rather than avoid it.
Working with Stokley Capital
We are not a broker and we do not shop your file. Requests are reviewed by the principals, and if a request is not something we can pursue, you will hear that quickly rather than being kept in a pipeline.
Request loan terms
Submit your financing request.
Questions
Answers before you ask.
- What is a commercial hard money loan?
- A commercial hard money loan is short-term financing secured primarily by commercial real estate, underwritten on the property's value, condition and business plan rather than on standardized borrower credit criteria.
- How is hard money different from a conventional commercial mortgage?
- Conventional commercial mortgages emphasize stabilized income, standardized coverage tests and longer processes. Asset-based financing emphasizes the property and the plan, and is generally shorter in term.
- What property types can be financed this way?
- Commercial asset classes including multifamily, self-storage, mobile home parks, industrial, retail, office, mixed-use and land, depending on the specific situation.
- What loan sizes do you make, and do you publish rates?
- Loans are typically $1M–$5M, first lien only, and larger loans are considered. We do not publish rates or leverage: every request is evaluated on the specific property, situation and business plan, and any financing is subject to underwriting, diligence, documentation and approval.
Nothing on this website is an offer to lend or a commitment of capital. All loans are subject to underwriting, due diligence, documentation and approval. Published lending guidelines are for general guidance only. Every deal goes through underwriting and has specific terms.
Next step
Need asset-based capital on a real deadline?
Send the property, the amount and the deadline. A principal will respond directly.