How Helpful Are Residential Hard Money Lenders in Texas?

Obtaining traditional funding for a loan is determined by a variety of things: credit score, debt to income ratio, reliability, creditworthiness—the list goes on. If you are seeking funding for a loan, you should be aware of all possibilities including untraditional routes like residential hard money lenders in Texas.

Texas hard money lenders usually consist of private companies and investors. They are alternative options to people who cannot receive traditional funding by public lenders like banks and credit unions. Private lenders can offer money vast on a variety of different properties including, but not limited to, residential homes, apartments, and condos.

So, what’s the deal with Texas hard money lenders? And how can they help you?

What’s so Great About Private Lenders?

Residential hard money lenders in Texas offer a few attractive qualities that are unmet by most public lenders: speed, transparency and flexibility. These Texas private money lenders are able to do what banks cannot by beginning the loan process almost immediately. If they can’t get it started the day of, it’ll only take as long as 10 days while banks usually need between one and two months to get the process started.

Additionally, Texas private money lenders offer transparency and flexibility that banks do not. Private lenders focus on the property’s collateral. This means they evaluate the property’s value and potential, and how that affects the risk in investing. Banks, however, will consider the borrower’s creditworthiness first. This consists of analyzing the borrower’s financial history and seeing if it exceeds banks standards. Private lenders also consider creditworthiness. However, private lenders consider collateral first. So, they make great options for people with an imperfect credit score who are in need of financial funding fast.

Which Scenarios Are Best for Hard Money?

Hard money is not for everyone, and, before you jump right into any hard money agreement, there are definitely a few things you should consider first. Texas hard money lenders have high interest rates—and, sometimes, they can be as five percent more than a traditional or public lender. Some people can afford this, and some people don’t mind paying the extra costs if it guarantees speed. For example, architects and home renovators rely on speed if they are bidding on a particular property on a competitive market

Additionally, hard money works great for them because of the short repayment period. With the goal being to build, renovate and then put on the market for what is hopefully a quick sale, the short repayment process lends itself perfectly to builders and renovators. However, people seeking hard money for long term projects may not find it as easy to work it into their timeline. Still, hard money can be used for other things including preventing foreclosures or working on short timelines.

If you are interested in residential hard money lenders in Texas, do a search of private investors in your area. Being rejected by a public lender, or even by a private lender, doesn’t mean you won’t find funding from another investor. Be smart about your needs as a borrower so that you can make the decision that is best for you.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

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 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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