Texas Hard Money Loans: A Good Investment in a Bad Economy

A Quick and Easy Guide to Finding the Right Texas Hard Money Loan
September 24, 2015
Regulations for Texas Hard Money Lender
September 25, 2015
In this economy, consider all your options financially

iStock_000004004971_Large.jpgIndeed, tight lending these days creates opportunities for hard-money lenders and individuals who want to get into the hard money lending game. A Texas hard money loan is a type of real estate mortgage backed by private investors or a private investment company. The mortgages carry interest rates of 6%-14%. For lenders, the profit potential is much greater than with traditional lending, and it is possible for individual investors to get into the hard money lending game. It is also a safer investment than many other options because it is backed by real estate. If you lend on a piece of real estate, you can brag about it, drive by it, smell it, take pictures of it.
That’s why private money lenders Texas is such a popular tool these days – even people who have lost it all in the recent real estate bubble bursting can stand proud and say, “My credit is terrible, but my ethics are not!”
Typically, individual hard-money lenders are matched with borrowers through loan brokers who make a commission on each deal. As with traditional mortgage brokers, they charge points and fees, which can be several thousand dollars per transaction. Some loans are set up with low monthly payments and a balloon payment due at the end of the loan term — a feature they share with some of the mortgages that contributed to the financial bust.
But even if the economy does recover, it’s not likely that Texas hard money will go away over night. Some of the benefits that will always be there include fast funding within 24 hours, loan values up to 80%, investors or flippers are treated fairly and accepted and interest only payments are encouraged. Markets always crash and recover – trends like this tend to stay on track, even when times are good. If you are interested in a Texas hard money loan as a borrower or an investor, call Level 4 Funding today to find out how to get started!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027



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