With Hard Money Lenders, Texas Investors Can Avoid Pitfalls

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With Hard Money Lenders, Texas Investors Can Avoid Pitfalls

When you are purchasing an investment property, there are many issues that can pop up during the escrow period and derail your investment. With hard money lenders, Texas real estate investors are able to avoid common pitfalls that can delay or even cancel closing. 

If you are looking to purchase an investment property, you may think the hard part is finding the right home to purchase. While finding the right property is important and can be stressful, once your offer is accepted, you are far from done. During the escrow period any number of issues can pop up and delay your closing. In some of the worst cases, you can actually end up having to cancel the purchase altogether.

The most common issues that can interfere with closing on an investment property are issues that pop up during an inspection. According to hard money lenders, Texas investment properties are most commonly sold “as is.” To protect themselves most investors still have an appraisal and a home inspection. If major issues are uncovered that you don’t have the funds to fix, you will often have to walk away from the property.

Another issue that can make closing difficult is time. Many investment properties are foreclosures, auctions, or short sales. If you come to the table with an offer contingent on bank financing, the time period for acceptance can take a long time. Sometimes even months. If you are looking to find an investment quickly, you may get discouraged and look elsewhere.

A final issues that often comes up during closing is investor financing. As a real estate investor, you often have lines of credit and mortgages on a few different properties at a time. This can throw off your debt to income ratio and you may have trouble getting financing. The worst is when the application goes through underwriting and you end up with an eleventh hour cancellation because something the bank didn’t like came up in your finances.

There When You Need Them, 3 Ways Hard Money Lenders Texas Help Investors Avoid Closing Pitfalls


One way to avoid some of the issues on closing on an investment property is to use hard money lenders Texas investors trust. Hard money lenders can give a hard money loan which will help you avoid many of the above mentioned issues that can cause your investment to not close.
Here are 3 ways that with hard money lenders, Texas investors are able to avoid issues during closing:
1. You can cross-collateralize and borrow extra cash. If an issues comes up during the inspection, you can use other property you own to get extra hard money funds to fix it so you aren’t short cash for repairs.
2. You can get cash quickly. Most hard money loans close in a matter of days compared to the weeks or months it takes bank loans. This means you can get cash fast to use at an auction or to make a strong offer on a short sale or foreclosure.
3. Texas hard money loans are not based on your personal finances but the merit of your investment. You can rest easy knowing nothing will come up as a red flag during underwriting.

Once you have decided to use hard money lenders Texas investors can count on, don’t delay.

Get your loan process started today so you can close on your investment property and start making money. 


Dennis Dahlberg Broker/RI/CEO/MLO

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

Texas Tel:      (512) 516-1177 
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | 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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.


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