Everything You Wanted to Know about Hard Money Lending

Hard money lending is simply a process that entails giving loans that are secured using real estate properties. Hard money loans are funded by the private investors or investors’ fund which is not the case for the loans that are offered by conventional lenders like credit unions or banks. The terms of hard money loans are usually about 12 months. However, they may be extended to a period of between 2 and 5 years. Monthly payments of interest or a combination of interest and principal are required for these loans with the balloon payment being made when the term comes to an end.

Amount

The amounts that hard money lenders lend borrowers are based on the subject property’s value. A borrower can get a hard money loan for a property that they already own or one that they wish to use as their collateral. It can also be a property that a borrower intends to acquire. Lenders of hard money are basically concerned with the value of the property instead of the credit of the borrower. If as a borrower you cannot get financing from a conventional institution due to a short sale or foreclosure, you can get a hard money loan in Houston TX as long as your equity in a property that are using a your collateral is sufficient. Thus, you still have a chance for financing when your bank says no.

Properties that can be financed through this lending

As a borrower, you can get a loan from a hard money lender on virtually any property. This includes an industrial property, a land, a commercial property, a multi-family residential and a single-family residential property. There are hard money lenders that specialize in specific types of properties such as residential properties. With such a lender, you might not get a land loan. This is because that is not a field in their specialization. Most lenders specialize in certain loan niches. It is therefore important that you ask upfront before you apply for a hard money loan.

Deals that you can close with loans from hard money lenders

Not every deal can be closed with a hard money loan. However, there are several deals that a reputable hard money lender will be interested in. They include flips and fix, land loans and construction loans. A hard money lender will also be interested in helping you if you have credit issues or when you are required to act quickly or lose an investment opportunity.

Who can benefit from this lending?

If you want to get financing quickly or if conventional lenders turn you away, you can benefit from our lending. Your hard money can be approved within 7 business days. Usually, a bank takes between 30 and 45 days to fund a loan. If you do not want to spend a lot of time applying and waiting for the loan to be approved, you can also benefit from our hard money loans. If you want to benefit from hard money lending,learn the facts here now and take advantage of our hard money loans while investing in the next real estate project.

Attributes of the Best Hard Money Lenders in Houston TX

Although it might seem like hard money lenders in Houston TX operate in a land where there are no regulations, there are common characteristics that set the leading had money lenders apart. The real estate industry is evolving at a very fast rate. Hard money lenders are now involved in most deals in the real estate industry. This is because of the attributes that make them the best option for real estate investors when compared to conventional lenders such as banks. Nevertheless, while choosing a hard money lender to work with in Houston, TX, it is important that you consider the characteristics of a hard money lender as explained by our experts.

Reputation

It is important that you choose a hard money lender that has been in the industry long enough and established an excellent reputation. Remember that hard money lenders earn their reputation via the services and loans that they offer borrowers. As such, a lender with a good reputation is known for offering better services and loans to borrowers. Thus, working with such a lender implies that you have better chances of getting the best hard money loan and services.

Responsiveness

How fast you respond in the real estate industry will influence the profitability of your real estate business. This is because most deals in the real estate are time sensitive. There are many parties that want to consummate these deals within the shortest time possible. Although due diligence is required, it should not be the reason for prolonging the deal’s finalization because of indecision or neglect. Thus, a good hard money lender in Houston will be swift and work hard to help you get the deal sealed.

Fairness

A good Houston hard money lender ensures a win-win situation for every involved party. The lender recognizes that hard money lending should be a continuous process. It should not be a one-shot deal but established relationships. A good hard money lender realizes that short term accommodations are overshadowed by long-term gains. Therefore, they try to find a common ground with the borrower so that both parties can benefit from the deal.

Flexible

The best hard money lender will be flexible to ensure that the deal is pleasant to you and to them. Basically, flexibility is the major advantage of working with hard money lenders. Remember that you should not enter any deal that is not understandable to you. However, you should be open to alternatives. Hard money lenders in houston will give you different options when it comes to loans. If you are flexible as an investor, you will take advantage of more deals with the loans from a good hard money lender than you may have thought about initially.

We know the importance of working with the best Houston hard money lenders. We have been in the real estate and hard money lending industry for a long time. If you are looking for the best hard money lenders in Houston TX, look no further. We guarantee you nothing but the best hard money loan, services and experience once you choose to work with us.

Why You Should Work with Hard Money Lenders in Houston Texas

There are many benefits of working with hard money lenders in Houston Texas. Today, many real estate investors are getting hard money loans instead of conventional loans. This is because hard money lenders offer financial tools that real estate investors need quickly to take advantage of emerging investment opportunities. Traditional financing on the other hard is slow and getting financing that real estate investors need takes time and effort. There are many forms that borrowers are required to fill and their credit scores must also be good. Hard money lenders on the other hard do not consider credit score. The application as well as approval process is simple and quick.

Why opt for a Houston hard money lender instead of a conventional financing institution

Working with a reputable hard money lender enables you to have more cash in the pocket. As a real estate investor, you will agree that this is very important because you cannot tell when a new investment opportunity will emerge. The deals of hard money lenders have a very good structure. For rehab projects, conventional loans require borrowers to fund their entire rehab. Additionally, they are required to put down 25 percent of the buying price. Hard money lenders require just a solid plan for the rehab and purchase the deal adequately deep. Thus, you can just table the closing costs. With this arrangement, you can save a lot of money and free up cash that you can invest in other deals.

Cash versus hard money

When purchasing a property or funding a rehab using cash, you can save money in regards to the fees. However, most real estate investors regret taking this route in the long run. This is because regardless of the amount of money that you save, it ends up running out eventually. Taking advantage of the loans from hard money lenders enables you to close more deals. In the real estate investment, the aim is usually to make more deals because this increases profit in the long run.

Industry knowledge

Houston hard money lenders are experienced investors. They possess the expertise or knowledge that is required to succeed in real estate investment. As such, they can advice you on the most ideal approach to take in every investment project. The pointers and tips that they offer are invaluable. These can make all the difference between your success and failure in real estate investment. If you opt to get a loan from a conventional lender or use your cash to find your investment, you will miss out on their invaluable mentorship.

Basically, there are many benefits of working with Houston hard money lenders. Nevertheless, hard money lenders are different. We understand how important a hard money loan is to you. It can be the beginning of a new chapter for your real estate business. Our goal is to avail the financing that you need for your real estate business easily and fast. If you are looking for the best hard money lenders in Houston Texas, look no further. Simply contact us right away.