Hard money loans Texas can be very beneficial for investors who are purchasing residential real estate properties like fix and flips or vacation rentals. However, hard money loans are also a great tool for commercial real estate investors. Read more to learn how you can use hard money loans Texas for your next commercial transaction.
If you are a real estate investor, you have probably heard of hard money loans. Hard money loans are asset based loans that are secured by real property, the investment property you are purchasing. They are short term loans and are given by an investment company or private mortgage firm.
When you get a hard money loans through Texas hard money lenders, there are a few things you need to be aware of. Firstly, the loan process will be quick and have less paperwork than a bank loan. You can usually get your money in about two weeks, sometimes less depending on the lender. Secondly, the Loan to Value or LTV ratio will differ by lender as will interest rates so make sure you shop around to choose the best Texas hard money lender. Finally, you will be charged a higher interest rate on this short term loan because it is riskier for the lender. If you can sell the property quickly enough this won’t matter and both you and your Texas hard money lender can make quite a bit of money.
You hear a lot about hard money loans Texas with regards to residential loans and auction purchases. You may not even know that they are also an option for commercial real estate investments. I am here to tell you, they are.
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.