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

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

Dennis Dahlberg Broker/RI/CEO/MLO

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

111 Congress Ave |Austin | Texas | 78701