Who Uses Hard Money Loans for Commercial Lending

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Who Uses Hard Money Loans for Commercial Lending

slide1Numerous borrowers use hard money loans for a variety of reasons. From real estate investors looking for Texas Commercial Lending options to home buyers and businesses, there is usually a private hard money lender that can fund your next project or purchase.

Many erroneously believe that the only time individuals and businesses turn to private hard money loans is when their credit score or debt-to-income are such that traditional Texas Commercial Lenders will not approve their loan application. The truth is that many real estate investors turn to these types of loans because of their quick approval and funding time. When a property comes on the market that peaks the interest of a real estate investor, you can be sure that more than one has spotted its arrival. In today’s market, it often takes quick access to capital in order to obtain the best properties for either fixing and flipping or buying and holding. While traditional funding can take over a month, a private hard money lender can get you the funds quickly, sometimes in just a few days.

For this same reason, contractors are also a common client of private hard money lenders. These asset-based loans are short-term, usually up to 24 months, and they offer draw programs for construction companies. Their interest-only payments allow companies and individuals to complete a project and sell it or obtain a traditional loan at the new after-repair value (ARV).

Home owners are drawn to bridge loans—these types of loans are provided by private hard money lenders to act as a bridge from one asset to another. If you want to purchase a home before you sell your current one, a bridge loan will give you the money you need so that you do not have to make a contingent-on-sale offer which can often mean the difference between acceptance and rejection in a seller’s market. Real estate investors use these types of Texas Commercial Loans as an alternative to obtaining an equity partner, for buying out said partner, while waiting for Texas Commercial Lending from a conventional loan to come through, or as a down payment for a build-out project.

Loans for Small Businesses and the Self-Employed

Small businesses use private hard money loans when they are in need of immediate cash. This occurs in seasonal businesses that may need additional capital to stock up for the upcoming busy season or to keep operations going during the slow season. They also use these types of loans for purchasing needed equipment. Some startups you this type of funding due to the difficulty of obtaining a conventional loan. The self-employed fall into this group as well.

Texas Commercial Lending from a private hard money lender is easier to obtain and provides fast capital when businesses are in need.

At Level 4 Funding, we have provided needed capital for small businesses, home owners, real estate investors, and contractors. Call us today to see if one of our many loan programs might be the perfect fit for you. We work with hundreds of hard money investors and know the businesses, properties and projects that appeal to each and every one of them.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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