Texas Hard Money Loans are offered by private lenders who are not required to follow the same guidelines and rules as traditional mortgage companies and banks. So as a borrower who is new to the world of hard money, there are a few tips that can help you to avoid what could be a potentially bad deal. Unfortunately, there are some less than reputable lenders out there but these tips can steer you away from predator Texas Hard Money Lenders or scam artists who are masquerading as lenders.
Most legitimate lenders will charge a few upfront fees but they will not be very large and they are normally for pass-through items or services such as an appraisal fee or title inquiries. If you have any concerns about the fees that a lender is requesting you pay, do some quick research online to learn what a fair rate is for the needed services. Also, beware of a lender who is asking for thousands of dollars upfront as it is likely a scam and the loan will never be funded.
You also want to be sure that you are truly working with a hard money lender and not a broker who is leading you to believe that he or she is actually funding Texas Hard Money Loans. Brokers will look for borrowers who are unfamiliar with the loan proves or who are having trouble finding a lender and then charge a large fee for brokering or simply mark up all of the real costs from the lender. In essence, the broker is a middleman who is adding no value to the process but is overcharging you.
Full disclosure is important in two aspects of purchasing real estate. First, it is critical that all information about the property be disclosed. There is no real way to hide this information in the age of the Internet, so be honest with your lender and demand that he or she be completely honest with you about any information discovered regarding the property. In addition, be certain that the lender is willing to be completely open about all of the fees and the total cost of the loan that you are requesting. Hard money loan documents can be complex so ask for a cost break down before selecting a loan.
If you have a detailed outline of the costs and terms of the proposed Texas Hard Money Loans but then a lender wants to alter the terms, beware of a shady deal. In these cases, it is likely a case of the lender being less than reputable and he or she is trying to slide additional fees or interest into the loan t make more money from you. If you feel that any part of the process is questionable or that you are not being giving the full cost of the loan, find a new lender to work with immediately. It is too late to correct after you have signed the loan documents.
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.