Most lenders offer 50-60% LTV (loan-to-value) as a standard. However, you can get 90% Texas Hard Money Loans if you know what lenders are looking for and adjust your strategy to suit.
1. Bring on a partner with experience. There’s a fairly large learning curve when it comes to real estate investments. Particularly as things stand now, with the markets leveling out or only climbing slowly, the success of any given project depends largely on the skill of those involved. If you don’t have experience or are weak in one or more areas of fix-and-flips, bringing on a partner who is strong in areas you aren’t will make you a more appealing borrower.
2. Improve your credit. While you can get funded with rotten credit, you won’t likely get 90% Texas Hard Money Loans. On lower amounts, your score matters a whole lot less. It’s based mostly on the value of the property. However, at 90-100% of the value, you’re asking the lender to take on considerably more risk. They’re going to need added assurance you’re fiscally responsible. There are many things that can improve a credit score, such as simply reviewing yours and requesting that inaccurate blemishes be removed or paying off older balances. You may need to spend some time building up in this area though.
3. Do rehab on a draw-basis. Don’t expect to receive all your funding at once. Lenders may feel a bit more at ease if you’re pulling out cash as it’s needed for various projects rather than in one lump sum at the onset.
4. Work a different location. Due to variances in the market, certain locations are safer bets than others. Check with your lender to see if this is the case in your circumstance. If it is, see if they can point you in the right direction when you go to search for a different property.
If you’ve addressed all three key areas—you’ve got the experience, good credit, are willing to work on a draw basis, and have a great location—it could be that the lender you’re working with simply doesn’t offer 90% Texas Hard Money Loans. Not all of them do. Call around to others in your area to see what terms they offer and under which circumstances they offer them. You can also connect with a broker who will know where you can get the best terms too.
Realistically, 90% Texas Hard Money Loans are hard to come by, and even among those who offer them, the criteria to obtain one is more stringent than other offerings. Find a good team that will work with you and get you the best terms possible. Listen to their advice and follow through on any steps they recommend. As you develop a relationship with them and they gain confidence in your ability to run a successful project, you’ll soon see better terms headed your way.
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 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.