When seeking out loan options, you’ll have to make some tough decisions based on your financial circumstances and the potential of the properties you wish to acquire. A lot of times, these decisions will center on whether or not you’re a risk taker.
If you get turned down by a public lender, like a bank or credit union, the end is not nigh. Oftentimes, when someone is turned down by a traditional lender, they are referred to private lenders who offer hard money.
Texas hard money lenders are able to approve a greater number of people for loans because they focus on the property’s investment value when approving loans. They are still known to deny borrowers, however, with strong plans and a property with potential, they can be great resources to help you with your dream property.
The Risks You Need to Know About Private Money
Texas hard money lenders are unlike public lenders because of the flexibility they offer. With the ability to approve borrowers and begin the process as soon as the day of, private lenders are very attractive. However, it is important to consider the costs of Texas private money lenders. Their interest rates are higher than public lenders and they require a short repayment period. A short repayment period is something that works well with something like a fixer upper, but it is not ideal in all situations.
Not all Texas private money lenders are reliable, either. Doing research is important, because the last thing you want is to be moving forward with your plans, only to have your lender pull the rug out from under you at the last minute. You also want to ensure that the terms to the loan agreement are agreeable. It sounds obvious, but unreliable and predatory lenders have a habit of hiding fees within the loan agreement. This is where a real estate attorney could come in. Having a pair of experienced eyes evaluate the loan and its value to you in your situation would be beneficial so that you can go into the loan agreement with confidence.
Finding Success and Making the Decision That’s Right for You
Choosing to work with a Texas hard money lender is a great option if you don’t qualify for a loan by a traditional lender. Working with untraditional lenders doesn’t always mean the process will be easy—and if it comes easy, it doesn’t mean it comes without risk. Choosing to move forward with hard money is just one option. If you aren’t willing to take a risk, and it’s not something that is necessary, you will have to consider other options.
Another thing to consider is that just because it doesn’t work out with one private lender, doesn’t mean it won’t work out with another. Staying focused and determined will be essential in your quest for a loan lender, and it’s something you probably had to utilize when you first began your property search. Moving forward despite some wrong turns will be essential if you want to obtain your dream property.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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.