Hard Money Loans in Texas

There is this outstanding opportunity to rehab and flip this nice old condo in a very good location and it seems like the one you've been looking forward to for a long time. You've heard that professional house flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average return close to forty to fifty thousand dollars. Naturally, you also know that their success are due to the simple fact that they are industry experts, are well versed in hard money loans, they know market trends really well and they also know how to work a public auction for getting a good price. With that being said, you have also been brushing up your rehab and renovation knowledge, have got a contractor lined up and are certain that you're capable of doing a bang up job on this house.

But how can real estate investors find funds? When you apply for a regular bank loan, you will have to wait roughly 30-60 days until the mortgage is authorized and the funds are readily available. So if you will be wishing for a fast closing, it is important you recognize that this could set you back by a couple weeks, causing you to miss out on the house.

With banks establishing more challenging loan standards in the past several years, it is now more difficult for a self-employed individual to get a home loan, especially if his credit score is not optimal. So does this mean you have no option, but to drop your dream to venture into the fix and flip business? Never, on the grounds that you could always use the Texas hard money loan approach to pay for your home renovating project.

A hard money home loan in Texas provides what is probably most sought after by real estate investors — a quick closing in as few as 2 weeks. Aside from that, loans can be made up to 70% loan-to-value of the as-is home's valuation, as determined by a qualified appraiser. With the rates starting out near 10%, hard money real estate loans may look, at first glance, to be more expensive in comparison with traditional bank loans. But usually, the interest rate is not as relevant for these loans, because they are not long-term loans. As it pertains to short-term loans of 1 or 2 years or even less, you should think of them the same as you might for any other expense for your project. After you rehab and sell the home, recovering this expense is just like recouping the one for new kitchen appliances you placed into the place.

Besides, hard money mortgages are easy qualifying, even in the event you posses poor credit. The borrower's credit score is not the single deciding factor for Texas hard money lenders — they also look at the home, its market value, its location, and its ability to bring back their investment if everything does not go as intended. How much a person can put down beforehand towards the home, his real estate experience, and selling price of comparable homes in the same vicinity are other details that go into analyzing a person's qualification for a hard money real estate loan.

Searching for a hard money lender in Texas to finance your real estate project is not difficult, provided that the opportunity before you is promising and has the right potential for returns. Enter your info into the form on this page or get in touch with us via phone to talk about the project you have in mind.