Lots of people turn to traditional lenders like banks and credit unions when they need money. However, it doesn’t take a genius to know that traditional lenders have some tough requirements to meet. Having a great credit score and debt to income ratio can make or break you when it comes to qualifying for loans, often leading people to seek out alternative options.
Alternative loan lenders are not bad. They are untraditional, private investors that can usually offer money faster than traditional lenders. Because they can cater to a wider audience, their needs and expectations are often different. For example, they have different loan approval requirements, as well as steeper fees and interest rates.
Qualifying for hard money loans is possible, even if a bank denies you. This is because Texas Hard Money Lenders consider property potential before they consider borrower potential. If you are working to obtain a property with high potential, it is likely that a private investor will provide you with funds to support your property. Private Texas Hard Money Lenders consider the LTV—the loan to value ratio. Sometimes, they can offer 65 percent of the property’s worth to you in funds. Additionally, because they work a little differently than traditional money lenders, the relationship is usually more transparent with a little flexibility. Usually hard money loans are paid off in 12 months, but can be expanded as long as 60 months, or 5 years. In this way, Texas Hard Money Lenders may seem “individualized,” making the loan process suitable to each individual that has been denied by banks due to high, generalized standards.
If you think this sounds too good to be true, it probably is. While Texas Hard Money Lenders offer lots of benefits, they also have some cons that should be considered thoroughly—before making any rash decisions out of excitement. For one, Texas Hard Money Lender maintain very high fees. This is a stipulation of their easy approval process, and acts almost as a reliability buffer for them as lenders. Knowing if you can handle high fees and a short repayment period is important. Even if there is flexibility within the repayment period, you still want to be realistic. Researching a reliable lender will also be important. While Texas Hard Money Lenders typically provide good, transparent relationships with their borrowers, it is not unheard of for lenders to pull out at the last minute, or hide fees within the loan agreement. If you are feeling unsure of your hard money lender, you can always invest in a real estate attorney who can help you evaluate and understand the terms of the loan agreement, so that you can feel confident you will be making the best decision for you. Hard money loans are a great option for people who need money fast—just make sure that your need for a loan doesn’t overlook stipulations that could cause you trouble in the long run if you aren’t being realistic about all of your needs.
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.