How to Tell if a Hard Money Loan is a Good Fit for You
A hard money loan is not for everyone. However, it will be a good fit for you if you need money fast, are confident that you can make a profit relatively quickly with a real estate investment (such as by flipping a house) and can pay back the loan within the terms of the agreement. And because our experienced hard money lenders do not rely on credit checks and other personal details to approve someone for a loan, this also makes our hard money loans a good choice for many people. Instead, we are able to base our loan amount on the property itself, allowing us to lend out up to 100 percent of its value.
Now, as with all financial decisions, there are some pros and cons to consider here. While it is generally easier to get approved and takes a lot less time than with other loans, it is worth noting that the interest rates with hard money loans are often higher. And because most hard money loans come with short term contracts, you will need to pay back the balance relatively quickly. Still, hard money loans are a great option for many people in Texas who know what they’re doing when it comes to fixing up real estate properties and selling them for much higher amounts than they purchased them for. Some people actually do this repeatedly as their primary source of income.
Options for Hard Money Loans in Texas
In the state of Texas, all hard money lenders must follow banking laws. That said, many properties that do not qualify for FHA loans or traditional real estate loans often do qualify for hard money loans as an alternative. Furthermore, the laws that oversee hard money loans are a bit more lenient than those governing traditional loans, and therefore the rules that you have to follow are also less stringent. For example, these loans can often be used for multiple properties, there are no pre-payment fees, and of course the money comes in a lot faster. Our experienced lenders have been helping people achieve their real estate dreams for over a decade through hard money loans. So when you’re ready, give us a call or come drop by our offices to get started.