What sort of business is it? Is the real estate the main bulk of the purchase?

There is a fairly large difference between typical commercial real estate lenders and hard money lenders, so you really need to take the time to figure out where to send your client to. A typical hard money lender is a short-term, high points, high interest lender. If your client is looking to hold this investment for a while, then hard money is probably not the way to go unless he just needs short-term financing while he manages to line up long-term money.

Hard money, at least how I and other investors I know use it, is primarily for rehabbing properties. The loan is very short term, typically under a year, comes with a lot of points and a pretty high rate. Work on the property is done, you get it reappraised, refinance into a regular mortgage or sell the property, thereby paying off the hard money lender.

I hope this helps - let me know.

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