What Are Hard Money Loans Texas, and How do I Get One?

If you are a real estate investor, you need hard money loans Texas financial experts use themselves. Hard money loans are a little know but very effective financing strategy that can help you invest in real estate and make your dreams come true. 

There is a well kept secret in the investment world, hard money loans Texas financial experts agree are a good option for many real estate investors. A hard money loan is an asset based loan that uses real estate that is intended for purchase as collateral for the loan. The money loaned is based on a variety of factors including the merit of the investment, potential to earn money, and the value of the property you are buying. Other factors like credit score or personal finances don't usually figure into the lender's decision to give out hard money loans Texas investors rely on to finance their real estate purchases.

While there are many, many benefits to hard money loans, Texas investors have often never heard of them. Hard money loans can be a great way to get financing if you need fast cash, or have some blips in your credit history. Approval time is fast and you can usually get your money the same day. This makes them an investors dream come true because you can use them to purchase auction properties and other properties that may require a quick decision or a cash only sale.

Once you have decided that a hard money loan is the best option for you, here are 3 things you need to know before you buy.

1. Hard money loans have a higher interest rate. Since approval times are so fast and the impact of your credit score is so low, hard money loans are a higher risk for the lender which means you pay a higher interest rate. However, it is important to keep in mind that hard money loans should be short term loans, which means the amount of interest you pay is negligible, even if the rate is higher.

2. Make sure you have a plan. While hard money loans are easy to get, they are not given out to anyone who walks through the door. Come to your lender with a property in mind and plan to make money, This will help ensure that you get your loan quickly and without any hassle.

3. Always have an exit strategy. This goes along with having a plan. Make sure you crunch your numbers to figure out exactly what you need to sell a property for to break even and to make a profit. Prepare for the worst case scenario so you don't end up losing it all.

Once you have decided that you need a hard money loan, call our experts at Level 4 Funding. We specialize in alternative financing methods for real estate investors and can help you choose the right loan product to fit your needs.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | 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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How Hard Money Lenders in Texas are Helping When Banks Fail

Many people, including real estate investors, often think that a property can only be purchased with money they have in the bank, or through a mortgage loan borrowed from a bank. Realistically, there are many paths to home ownership, and the easiest is often through hard money lenders in Texas.

Everybody needs a place to live, but the traditional system makes it impossible to buy a home, or even rent one, when there’s a blip in your history. Unfortunately, this is the very real situation many Americans face. The economic recession hurt almost everyone’s credit, and has left so many families without housing options, even years after the crisis.

Despite the fact that the nation is still recovering, banks look at all sorts of things, including your credit score, previous bankruptcies, and employment history. If you don’t make the cut, or they think you’re too much of a risk, they refuse to provide a mortgage. Banks will even deny you if your credit is fine, but you happen to be applying at the same time as others with higher scores.

The Urban Institute examines issues like this, and has a specific focus on social and economic policies. The group has been actively researching since the 1960s, and in 2013 they released a huge bombshell. Banks have historically claimed that they only deny about 14% of applications, but the Urban Institute leveled the playing field by eliminating those with perfect or near-perfect credit from the calculations. In doing so, they discovered that the rate of denials is triple the amount banks claim for those with less than perfect credit. Considering that only 0.5% of us may ever achieve a perfect rating, most of us fall into a bracket with a 43% denial rate, which is why hard money lenders in Texas are incredibly popular.

Hard Money Lenders in Texas Give that 43% a Successful Path to Home Ownership

Banks have many rules and restrictions on who they’ll lend to, but when you borrow from hard moneylenders in Texas, the money and the decision are handed down by one person, or a small group of people. This method of lending isn’t restricted by the same guidelines and policies, because the money that goes to fund the purchase of the home comes from sources like personal funds and retirement accounts. Instead of focusing on an individual’s history, the decision on the amount of money needed and the value of the property or assets.

Depending on eligibility, 100% of the cost of your home can be funded through hard money lenders in Texas.

Unlike conventional mortgages, which usually require a down payment, hard money lenders in Texas may be able to give you a loan for the full purchase price of the property you want. This means that it’s much easier to buy a home, and it’s significantly easier than trying to qualify with a bank. It’s worth noting that the people who loan the funds are investors, and they want you to succeed, but they’re also loaning out their personal funds, which means that it can cost a little more. For this reason, many people utilize this option to purchase a home initially, and then secure a traditional mortgage when they can qualify for one at a later date. The additional step is generally of little concern to home buyers, because it enables them to have the keys to their very own home long before it could happen by other means.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

What You NEED to Know About FICO Scores and Hard Money Loans Texas!

Many Americans will find themselves in the position of having "bad" credit at some point in their lives. However, bad credit does not have to keep you from your dreams of real estate investing. With hard money loans Texas, credit problems can be no problem at all.

If you have bad credit, you may feel like you can never catch a break. Everything from car loans, to home mortgages, to store credit cards may be out of your reach. However, it is important to know that you are not alone. Bad credit is classified as a FICO score of less than 640 and nearly one in four credit using Americans fall into this category.

A low FICO score might make it seem like real estate investing is out of your reach. This is simply not true. With hard money loans Texas from Texas hard money lenders, the real estate investment market is within your reach. This is because hard money loans Texas are not based on your credit score. Instead they are based on the merit of the property you want to invest in. Texas hard money lenders are in more than the business of giving out loans, they are in the business of making money, for you and for them. If you have an idea that will yield substantial profits, they are usually willing to look past your less than ideal credit score.

If you are going to invest in a property with Texas hard money lenders and you have bad credit, you need to keep a few things in mind.

1. You will pay a higher interest rate for the loan. You are a high risk borrower so your hard money loans Texas will come with a higher price tag. Keep in mind that this is meant to be a short term, for profit loan and make sure you have an exit plan.

2. You need to be taking active steps to repair your credit. If you come to your Texas hard money lenders with terrible credit, no job, and are late on multiple payments, you can expect to not get a loan. You need to be able to show that your credit problems are a minor setback, not a regular habit. This means start making payments on time and have a source of income.

3. Come in with a plan. Have a property you want to purchase and timeline for selling it, as well as a realistic budget. Convince your Texas hard money lenders that YOU are a good investment.

4. Get to work and make money. The faster you complete your project, the less interest you will pay.

5. Enjoy your profits, rebuild your credit, and keep investing in real estate!

That's it, pretty simple, right? Call us today to get started!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Texas Hard Money Loans Are There When YOU Need Them!

Hard Money Loan Texas

If you are trying to renovate your home, but you don’t have the credit you need for a traditional bank loan, you can stop worrying. Texas hard money loans from a reputable private lender are all you need to start working on the home of your dreams right away.

If you’re curious, Texas hard money loans are the best thing out there right now for people hit hard by the economic downfall and who don’t have the credit score of their dreams, but definitely found the property they want to renovate.

Texas hard money loans are funded by Texas hard money lenders and are based on the merit of the property as an investment, not the credit of the borrower. This makes them ideal for anyone who may have bad credit due to the economic downturn or any other factors. 

You no longer need to give out your entire bank history. Now, without any credit, you can have money in your hand and you can start renovations on your home almost immediately.

Your Texas hard money lender believes that just because you had sour luck in the market, it doesn’t mean all your sweet dreams should be completely dashed. With a hard money Texas loan, you will see that you can still have everything that you wanted- and much faster than your traditional bank loan.

A Texas hard money loan is a convenient way to spruce up your house or property without the stress and agonizing that one has to do over a traditional loan from the bank where credit scores are checked and paperwork takes forever.

We know that you’ll be happy that as soon as you qualify for your Texas hard money loan, you are that much closer to becoming the owner of the property you always wanted.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Confused By Texas Hard Money? Don't Be!

hard money lender Texas

Private financing is a great way to get the money you need for the property that you want. But Texas hard money could be confusing so it’s good that you’re looking up some facts. Don’t be discouraged by traditional loans, a hard money lender Texas or a private money lender Texas are both able to help you out. They have access to money quickly from private investors and equity firms. If you are a looking for a quick, easy, and painless loan, Texas hard money is your answer!

Both a hard money lender Texas and an private money lender Texas make it easier to apply for a loan than any bank. Getting a hard money lender means that a group of people would be in charge of your loan, however, private money lender is just one person who will help with your loan. They can be someone you know or someone you trust or even a stranger that you have faith in. You can also connect with a private money lender by calling a mortgage company like Level 4 Funding. We have access to a wide range of hard money loans and lenders. Texas hard money is a really fantastic option for those who do not wish to obtain a traditional bank loan. 

Keep in mind, if you are applying for a Texas hard money loan, it is best used for short term financing projects. Things like fix and flips, or a short term loan before you can obtain more traditional financing are great options for a Texas hard money loan. There is a higher interest rate but since you will only have the loan for a short time, this is often not a significant factor. 

Texas hard money is easy to get so don’t let the name fool you. They may have high interest rates, but with the fast turnaround time, it really doesn’t matter. What’s more is that Texas hard money lenders give out money based on the value of the property and that often includes the cost of the repair for the property inside of the loans. That is very unlike a traditional loan and so much easier. One should really consider Texas hard money instead of the bank when it comes to property loans. Just think of all the wonderful benefits! When you are ready to discuss your Texas hard money loan options, call our brokers at Level 4 Funding to get the application process started!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

What You Need to Know About Texas Hard Money and LTV

Why the higher interest rates on Arizona hard money loans?

You might have heard the term "hard money" drifting around in current years and thought about the opportunity of buying a home this way. However, the higher rate of interest that go along with Texas hard money usually frighten debtors away. Ensure you know the implications of Texas hard money before writing it off entirely-- you never know exactly how you can make it help you!

The initial point to know is that Texas hard money loans are equity-based. That indicates that your qualification for a financing does not originate from your credit score, capacity to pay, or job standing. As a matter of fact, the loan is exclusively based on what the residential property is worth.

Exactly what does this mean for you and your lender? Essentially, it suggests that you have not been able to be accepted for a standard mortgage. It also indicates than a hard money lender is taking a significant danger by allowing you to acquire his or her private money temporarily, not 100% certain that they will get it back. Hard money lenders take a significantly greater risk compared to financial institutions due to the fact that the loans are based so little on you and so much on the property value.

One more point to bear in mind is that Texas hard money loans are normally shorter in length compared to bank loans. Often, the terms of Texas hard money loans last anywhere from 6-36 months, but can easily vary depending on the circumstance. It is important to remember that the longer you have the loan for, the more interest you will pay. Texas hard money is designed to be a short term loan for investment properties or short term financial needs.

An additional factor customers experience is a little bit higher rates of interest. This is because they are not required to pay any application costs, processing fees, paperwork charges, or closing costs. All of those expenditures accumulate quickly and they have to be considered in some way.

The major explanation Texas hard money loans charge a bit higher interest rates is due to the significant risk on behalf of the lender. These lenders go where banks decline to go, and they lend to those people who would not be able to obtain financing otherwise. They don't examine a customer's capability to pay-- they merely depend on that borrower to be true to their word.

What about LTV with Texas hard money?

Essentially, the LTV represents the Loan to Value ratio of a Texas hard money loan. Sometimes, debtors could receive approximately 80 % of the money that the residential property is worth. Usually, this number is anywhere in between 65 % and 80 %. This is determined on a case by situation basis and is a choice made in between you and your lender. One of the reasons this is a bit flexible is that a Texas hard money loan is given by a private lender or investor, not a bank. Banks have strict guidelines they have to follow. While hard money lenders do have to follow all federal regulations and laws, they have more discretion when it comes to approving loans and their hands are not tied.

If a Texas hard money loan sounds like the right loan for you, call our office today!

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

3 Facts You NEED to Know About Private Money Lenders Texas!

The economy has made traditional lenders a little worried about your credit score. Many real estate investors are finding themselves unable to purchase investment properties due to a bad credit score or unfavorable debt to income ratio. If you find yourself in this situation, you are not alone. That’s why Texas hard money loans made by private money lenders Texas are among the best ways to get started flipping that house today, even when you don’t have the credit you once had. With Texas Hard Money loans, you actually don’t need to have perfect or even good credit. Take a look at this three facts you might not have known about private money lenders Texas. 

1. Like we said above, with private money lenders Texas, don’t worry about your credit score. Your lender sure isn’t! Instead of worrying about your credit score, start worrying about what you’re going to do with the house you want to flip! Really, lenders are more concerned about the property you are borrowing against and whether or not you are going to repay the loan, but they judge that based on character. This loan really has nothing to do with your FICO score, so stop worrying about it.
2. You have to be realistic with private money lenders Texas. Why? Because this is a loan, not a gift. Really be honest about how long you think your home renovation project is going to take and be up front with your lender. For example, do not say you will only take a month if you know it will take three. That would be bad faith and give you a bad reputation. Plus it could end up costing you a lot extra in interest and penalties. Give yourself enough time to pay the loan off. If you find that your project is taking longer than you anticipated, ask for an extension on your hard money loan. 
3. One last tip is that hard money loans really aren’t as expensive as you think they are. This is especially true if you can make your turn around time on your home investment quickly. The loan does carry a higher interest rate, but it is meant to be a short term investment that can help you and your lender make money fast. It is a win-win solution. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027