Not all loans are the same and not all lenders offer the same terms. This is especially true for the hard money loans Texas investors rely on to buy and sell real estate. With varying loan to value ratios, interest rates, and loan terms, it is important to find the best hard money loan from a lender you can trust.
Many Texas real estate investors rely on hard money loans to finance their investment purchases. The hard money loans Texas investors use are asset based financing opportunities that are backed by real collateral, in most cases the property being purchased. Hard money loans are obtained through private hard money lenders rather than traditional banks.
There are several reasons that hard money loans are a go to loan for many investors. First and most importantly, hard money lenders can get you cash, fast. This is key if you are bidding at a property at an auction or purchasing a foreclosure, both of which are common for real estate investors. Secondly, the hard money loans Texas experts recommend are asset based, rather than based on your finances. Many investors own several properties that are in various stages of being purchased, renovated, and sold. While a property may ultimately represent a lucrative investment, owning too many at once can throw off your debt to income ratio. This makes getting a bank loan nearly impossible. However, hard money loans are still there when you need them.
Finding a Lender for Hard Money Loans Texas Experts Trust
If you have decided that a hard money loan is the loan for you, it is important to find the right lender and the right loan. Here are a few questions to ask and investigate before you sign on the dotted line.
1. What is the maximum loan to value ratio this lender will loan? For most reputable lenders, the hard money loans Texas
investors count on will lend about 60 to 80 percent of the property value. If a lender offers a 100% loan, this may be a sign that they are counting on you to default. It does not automatically disqualify a lender, but it should make you leery and make you do some extra research.
2. What is the interest rate for the loan? Rates will vary from 7% to the double digits, so make sure you know exactly what you are paying.
3. What are the fees for the loan? Fees add up so make sure you know what to expect.
4. How long is the loan for and can it be renegotiated if I need it to? Real estate is unpredictable. Make sure you know the length of your loan and that you can extend the loan if you need to. A loan with a strict pay back date may put you in an uncomfortable position if you can’t sell your investment quickly enough.
Once you’ve found a lender, it is time to getting started using the funds from your hard money loans Texas experts trust to make your real estate dreams come true!
Don’t be afraid to ask for help if you need it, and remember, even though real estate investing is technically a job, it should also be fun!
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.