Texas Hard Money Loans are often referred to those who cannot qualify for traditional lending options. They are offered by private companies and investors who base their approval process on a very individual basis—that of the loan and property plans, and then the reliability of the lender. As you may know, when you seek out traditional loans offered by local banks and credit unions, getting approved is based solely on your financial history, including your credit score and debt to income ratio. Your reliability as a borrower is paramount. However, when it comes to hard money lenders, they consider this second. The investment is based on collateral and potential value. This leads many to private Arizona Hard Money Lenders without considering the possible repercussions.
The first con of Texas Hard Money Lenders is that they may in fact be, well, a con. Determining the reliability of your lender will be of the utmost importance. A lot of people consider the fact that, when seeking out loans, they will have to prove their reliability as a lender. Sometimes it is an afterthought that the opposite must also be considered. Finding a hard money lender who can offer you a loan and will not pull out of the project last minute can be the difference between a success and a failure. Putting in a little research and seeking out lenders who have worked with individuals on similar projects will be helpful in seeking out the right lender. The next major thing to consider is the price. Texas Hard Money Loans can be great for a variety of people, but it doesn’t come without a cost. Literally. Interest rates on hard money can be as high as five percent more than the rates on traditional loans across the market. Not only that, but all Arizona Hard Money Lenders are different. In addition to the high rates, some lenders may also require additional fees within the loan agreement. The last thing you will want to consider is the short repayment period. Depending on what you need the loan for, the short repayment period may not impact you as much as it would someone else. However, coupled with the high interest rates, it’s definitely something to consider before diving in.
Texas Hard Money Loans can be the solution if you do not qualify for traditional loans. Arizona Hard Money Lenders are able to get you your money fast, and may be able to approve you based on the plans you have for the property while a traditional lender may only consider your financial history. Texas Hard Money Lenders work fast, are generally transparent with you, and can even offer a loan extension if they believe in you and your plans. There are risks associated with hard money lenders, but if the speed and flexibility outweigh the dangers they may just be for you.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | 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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.