What is Texas Hard Money? Benefits of a Hard Money Loan

What kind of Texas Hard Money do I want?

There are two different kinds of Texas hard money that is available to you. Both are exceptionally similar, but they each have different benefits to the borrower. The two types of Texas hard money are Hard money lender Texas and private money lender Texas. It is easy to get confused by the two, they are both practical kinds of loans, but the following will explain how they are different.

It shouldn't surprise you to find out that hard money lender Texas and private money lender Texas are both based on assets and have more to do with the real estate you want to invest in than with your credit score. These are both also loans that are not bank affiliated, so they are easier to obtain than your traditional bank loan.

However, hard money lender Texas and private money lender Texas do have some differences. 

For example, hard money lender Texas happens to be a group of people, while private money lender Texas is just one individual who gives out the loan. Typically, with a private money lender Texas, you know the person loaning you money, but that isn't always the case with the group of investors in a hard money lender Texas.

Both loans have quick turnaround despite their higher interest rate, but because of this quick turnaround, the interest rate makes little to no difference. The loans are also more flexible than your traditional bank loans, especially when you use a private money lender Texas.

Consider these types of loans as you decide on rehabbing a property. It could make all the difference to your project and stress you out far less in the interim. Consider the flexible and safe Texas hard money loans. Whether you go private money lender Texas or hard money lender Texas, you will be happy with the outcome.

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

Real Estate Investment Opportunities Using Texas Hard Money

The sole purpose of a Texas hard money lender is to provide people with the fastest and easiest access to private money and hard money loan options secured by real estate. In fact, you may even be able to get funding in as little as 5 business days through one of our Texas hard money loan programs. Hard money lenders Texas are equity based lenders who will give you a loan based on the merits of the property you want to buy, not your own personal merits. 

What exactly does that mean to you? It means these hard money lenders Texas provide you hard money regardless of your credit, job history or income, as long as they can see upon evaluation of the property that you will make a profit doing a fix and flip. So does your credit score matter? Yes, it can help you to get a better interest rate, but it won’t be used to determine whether you qualify for a loan. If you need 100% financing so you can get started with no money out of pocket, you may even be able to find a hard money lender in Texas who can help. Some have developed programs that give you access to additional financing options on top of hard money, that can make it possible for you to break into real estate investing with no money of your own.

Texas hard money loans are a fantastic option for those looking to break into the real estate investment market. With short terms, interest only payments, and a loan that is backed by equity vs. credit, they can be the perfect option for many investors. Contact us at Level 4 Funding today to find out all of your Texas hard money options!

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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

What Do You Need to Know About Private Money Lenders Texas?

Many first time investors are curious about hard money lenders in Texas. Here I have laid out some of the basic principles about hard money lenders Texas. First of all, you must know what the term "hard money" means. When money is discussed between investors, it is considered to either be "soft" or "hard." Typically, soft money is easier to qualify for and the terms are flexible. Texas hard money, on the other hand, is just the opposite. It is much more restrictive. Not in that it's more difficult to obtain, but the terms are very specific and much stricter. They have to be, because most hard money comes from private individuals with a great deal of money on hand. This is why hard money is also referred to as "private money". The money used for investment purposes comes from people, just like you and I, not a typical lending institution. So their first priority is to protect their investment capital. This is why the terms have to be so strict. If it were your money, you would want the same.

So what are some of the terms of private money lenders Texas ? Obviously it varies from lender to lender. It used to be that private money lenders Texas would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender Texas would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.

These regulations can help protect borrowers and lenders to ensure that everyone is happy with the deal. Hard money loans can be a lucrative option for borrowers who want a short term investment property where the goal is to fix and flip for cash, quickly. If a hard money loan sounds like a good option for you, talk with a private lender in Texas today! 

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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

It's Still Possible to Make Cash With Private Money Lenders Texas

It’s still possible to make cash in the real estate market

In many of the metropolitan Austin area’s suburbs, there are dilapidated and neglected homes that were hastily built in the infamous real estate bubble. We’ve hardly even recovered from the dot com bubble and now there’s this? What next, right? And while many Texas suburbs are suffering, there’s still a demand for houses, however small it may be.

So if you’re a real estate agent in this day and age, it may be next to impossible to put bread on your family’s table. That’s why many are switching to hard money lenders Texas to find ways to make ends meet. All they do is approach some kind of private money lenders Texas and get an nearly instant approval for their loan, then they start on hiring the local painters, landscapers and other fixers and cleaners to help flip the property. This is happening all around you, in neighborhoods across the country, because a decent house that stands out above the rest of the decaying crap is all you can really sell.

And if you do sell it, which is still possible, believe it or not, you can make yourself a very healthy profit. It’s not rocket science – it’s just private mortgage loans. It may be more difficult to do this than it was even five years ago, but it’s not impossible. After all, anything worth doing is worth doing right and hard work usually pays off. Keep that in mind when you’re considering how to keep your real estate business afloat.

This can also be a helpful trick for any investor buyer's you may have. Send them to private money lenders Texas to get the hard money loan they need for their fix and flip! Call us today for competitive rates and a trustworthy broker. 

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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

Private Money Lenders in Texas Risk Less

So, what is a Private Loan? It is a loan made, in this case, to a real estate investor and is secured (collateralized) by real estate. Private Money Lenders Texas are typically given a first or second mortgage that secures their legal interest in the property thus securing their investment. We are not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes. We typically employ low LTV ratios to our Private, also called Hard Money Lenders Texas, to increase security of the loan. Standard LTV ratios are usually under 75% of the value of the property securing the loan and frequently as low as 60%. This means additional security on the investment.

For example, if a property is valued at $100,000, Hard Money Lenders Texas would usually not loan more than $75,000 dollars on the property. That’s a 75% loan-to-value ratio. This approach taken by private money lenders Texas is obviously a much safer approach from that taken by conventional lenders. These banks get into trouble because they make loans at a 90%, 95%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property. It is in the best interest of the hard money lenders Texas to minimize risk and maximize return and this is why private loans should not be made without a 25%+ safety net.

You can get into hard money lending in Texas as both an investor and a borrower. Call Level 4 Funding to find out more about all of your options today!

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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

Even if You Have No Good, Rotten Credit, You Can Get the Loan You Need

Most properties that an investor buys with the intention of flipping for profit do not meet FHA guidelines. Well, why does that matter? You see, in order to qualify for "traditional" financing to buy a property, a home must meet these guidelines. Otherwise a lender can't underwrite your loan. Which means that you can't walk down to your local bank or call up Bank of America to have them fund your deals. If it seems like you can never buy a fix and flip to make a profit, don't be discouraged. You can get around strict lending requirements by using hard money lenders Texas. 

That explains why the majority of fix and flip loans are financed by private money or hard money lenders Texas. What the hell are those, you ask? Listen up and you might learn something that can help you use real estate to make cash. These lenders will loan money based on an asset. In this case, the asset is a piece of real estate. The good ones are people who are (or have been) real estate investors themselves, so they really understand what it takes to fix a property and sell it for a profit. 

What hard and private money lenders Texas will do is look at the property you want to invest in. They'll ask you for your purchase price and what repairs you want to do as well. If they can see by the data that an investor can buy a house, do the repair work and quickly sell the home for a profit, they will fund the deal. It’s that freaking simple! The lending decision is based entirely off of the aspects of the property - NOT the borrower. This means that you can get financed if you have bad credit or no credit. You don't have to show job history or prove you have any income or assets.

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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

What You Need to Know About Finding and Flipping a Property with Texas Hard Money

The essentials of flipping a property

 A lot of hard work and extra steps go into flipping a property – that is, acquiring a beaten down, worn out house or business, repairing and upgrading the whole thing and then selling it for a profit.

There’s a lot to consider – for one, the time it’ll take, who you’ll be outsourcing to fix dents, tile floors, fix plumbing and garnish the trim. Then there’s the anxiety over selling such a property. Even if you completely renovate a mansion and try to resell it, will anyone be able to buy it in these markets? Well, as the economy and the stock market steadily rise, the answer seems to be yes, so long as you’re patient.

But the most important thing to consider is cost. If your expenses in flipping this hypothetical property exceed or hardly meet your profits, you’ll be down river without a paddle. And what if the banks don’t even approve your project, as they are wont to do in such an unstable market. One way to avoid this is with hiring a hard money lender Texas. These guys give you the funds to give your project life and usually only ask for a small percentage and payments on interest, so you can focus on all the electrical rewiring or whatever, instead of how you’ll pay bills month to month. Understanding this growing trend of Texas hard money is essential to anyone trying to make buck in the real estate biz, especially since so many people are wary of it lately. Hopefully, you can make a right decision that will benefit everyone in the end.

Being smart about choosing the right hard money lender Texas and the right hard money loan can make all the difference in your fix and flip game. Call us today to get started on making money in the real estate market!

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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

Regulations for Texas Hard Money Lenders

You may have heard that hard money lenders Texas do not need a license. But is there any truth to this? It’s true that private money lenders Texas don't need one in the commercial sector. But do hard money lenders Texas need a license to lend for residential properties? Hard money can fall in the gray. The answer will vary depending on the state where the property is located. Although there is grey area, it is always best to find a hard money lender Texas that has a good reputation and is licensed as mortgage brokers. 

If private money lenders Texas lend to a business who fixes up a residential property then it is many times completely valid to consider the loan a commercial loan. That means the commercial loan rules could apply. If hard money lenders Texas lend to an owner occupant for their primary residence they are definitely in the residential space and need to be licensed and also follow all the regulations. Most private money lenders Texas will not lend on residential property that will be owner occupied. That should give you a clue as to what most hard money lenders Texas think about the residential loan market and the regulations. Also, Texas hard money loans tend to carry a higher interest rate and are usually not meant to be a long term mortgage solution. Instead they are a way to purchase a fix and flip or make quick cash by reselling. 

Dennis Dahlberg
Broker/RI/CEO/MLO

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

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