Hard money lending is a key part of the financial sector. This type of lending involves asset based lending – loans that are secured through assets instead of being based on credit scores and income alone, in other words. And ask any of the hard money lenders Houston is home to, and each will likely tell you different information about the best way to go about succeeding here. However, understanding a few basics can help you get double digit returns and move your financial situation forwards in a big way. [Read more…]
Residential properties are more than just homes for people – they’re also a solid investment opportunity and one that can help you transform your financial portfolio in a big way. But it’s not always that simple to get the funding needed, and for commercial endeavors sometimes looking at a hard money lender Houston is a good idea. [Read more…]
When you are undertaking a project of any kind, whether it is construction, development, or short-term investment in real estate, one things is a must – financing. But at times, qualifying for a loan isn’t always possible. In these situations, taking out one of the bridge loans Houston private lenders offer is well worth considering. [Read more…]
Any commercial endeavor requires one thing – the funds to get it finished. Finding commercial financing for any project, whether it is real estate investing, construction, or something else entirely, can be difficult at times. There are numerous choices available, and finding a hard money mortgage lender Houston TX is one option that’s well worth looking at in many instances. [Read more…]
Finding funding is a key part of moving any business operation forwards, and the lending world offers numerous opportunities for those who need a loan as well as those who are investors looking for something that will net them a solid return.
One option that is worth looking at is bridge loans commercial real estate. Hard money loans are often utilized as bridge loans, and they offer numerous benefits for those who need money. These include: [Read more…]
When you are involved in any kind of commercial endeavor, there is a good chance that you will end up needing financing at some point. There are numerous types of loans out there, and finding the one that is right for your project goals is important. Understanding hard money lending Houston is a good idea since hard money loans are often an integral part of getting results within the development, investment, and real estate worlds. [Read more…]
In today’s real estate market, a traditional loan can sometimes be hard to come by. Fortunately, hard money loans mean that it is no longer necessary to jump through all those hoops set up by your bank in order to get a loan. There are several things to understand about these loans including how they work and what you need to do to secure one. There are numerous Houston hard money lenders out there, but knowing the basics is important first. [Read more…]
Those who are looking for a commercial loan may wish to check into a hard money loan. Hard money loans require no credit check, give you a high loan-to-value ratio and allow you to rehab, flip or refinance properties to help you build equity faster. The best part is that loan applications can be processed quickly to let you move fast on investments that make sense for you.
You May Not Have $200,000 or More Just Laying Around
A hard money loan can help you make moves even you don’t have the money in the bank to purchase a property. If you don’t have good credit and/or you are going to flip the home quickly, a bank may not approve a mortgage application. With a hard money lender, you get the money and buy the property with few questions asked. You then sell the property or refinance the loan as soon as possible to either repay the loan or convert it into a more traditional mortgage.
Mortgage Applications Can Take Awhile To Process
If you are able to get a mortgage, it can take weeks or months to process. You may also have to answer a lot of questions regarding how you are going to use the property and document where the money for your down payment is coming from. Those who don’t have 20 percent down may have to opt for a government-backed loan, which means that you aren’t going to be able to sell the property before 12 months have passed. With a hard money lender, you are able to do whatever you want with your property.
Get A Loan Based On The Value Of The Property After Repairs
You may be able to secure a loan based on its value after repairs have been made. This can help you gain access to more money upfront, which may make it possible to both purchase and rehab a property without having to spend any of your own money. For investors, having the ability to leverage a hard money loan may make it easier to purchase multiple properties and diversify their portfolio.
A hard money lender may be able to help anyone become a real estate investor. Even if you don’t have great credit, you can get a hard money loan, buy the property you want and make money on your schedule. This may offer individuals the ability to gain financial independence and security both now and in the future.
Many lenders require loan requests to fit in a certain set of guidelines and requirements, and loan requests that do not meet their requirements are declined. Most lenders simply will not make an exception to the rules even if there is a strong mitigating factor. The requirements may relate to everything from the location of the property or the type of property to the borrower’s credit scores or available liquid assets. However, even when a loan request does not fit the exact set of requirements, there may still be strong merits to the loan request. While many lenders are not able to think outside the box, hard money lenders Houston can.
What to Expect From the Best Hard Money Lenders In Houston
A hard money lender in Houston is a company that specializes in creative lending. These are lenders that may offer a higher interest rate and other adjusted loan terms in comparison to traditional bank financing, but they also may be able to extend loan approval to you when other banks are not willing to do so. The best hard money lenders are those that offer financing for your type of property, such as a residential or commercial property. They may also be lenders that take time to get to know more about your loan request and to discover the merits of the file.
What to Look For in a Hard Money Lender
When you are searching for the best hard money lenders in Houston, you want to review general loan terms the lender offers. This may include loan terms, interest rates and more. In addition, pay attention to the property types, unique lending situations and other factors that may be taken into account with the loan request. In some cases, you may be able to determine if the lender would be interested in your loan request by reviewing the website. However, the best lenders will want to speak with you personally about your loan request so that they can learn more about it.
If you have a loan request that does not fall into the perfect box that most traditional lenders require a loan request to fall into, rest assured that there may still be an option available to you. You can research the hard money lenders in the Houston area that may be able to help you, and you can request an appointment to speak with a representative about your loan request.
Bridge Loans: Your Key to Buying a New Home
Bridge Loans: A Homeowners Key to New Home Purchases
Bridge loans have become increasingly popular because they give new home buyers a way to finance their purchase before they sell their old home. Even though these loans may have higher interest rates than conventional mortgages, they may end up saving borrowers money because they allow home buyers to seize opportunities, wait to sell their current house to the right buyer, and maybe take advantage of better financing options in the long run. Also, since they are only expected to be short-term loans, somewhat higher interest rates should not make that large of an impact on borrowers.
Examples of Bridge Loans for Home Purchases
To understand the advantages of using a bridge loan for a new home purchase, consider an example. A family may own a home that has been put on the market because they need to move. They may want to move to upgrade to a better home, seek employment in another area, or for any of a number of good reasons. This family would like to purchase a new house quickly, but they also want to wait to fix up their old house and market it to a good buyer who will pay a fair price.
Meanwhile, this family needs money for a substantial down payment for their new home in order to take advantage of low interest rates and mortgage payments over the long term. This is a problem because they have money tied up in the equity of the current home. A bridge loan solves this problem because it provides the financing to purchase the new home.
In some cases, cash is not a problem, but it still takes time to get approved for a conventional mortgage at low interest rates. Rather than wait weeks or months for an approval, families may get approved for a hard money real estate loan within days. In some cases, interest-only real estate loans can get arranged.
Advantages of Bridge Loans for Real Estate Purchases
By now, the advantages of bridge loans for personal home purchases should be clear:
- Fast money; Hard money lenders can arrange bridge loans very quickly, and this gives home buyers the ability to close on a real estate deal quickly with cash.
- Cash buyers: Many home sellers and real estate agents prefer cash buyers, and they may offer discounts on the sales price and other incentives.
- Time to properly market and sell an old home: This gives the home owner time to fix up their old home and leave it on the market long enough to get a good offer.
Once the old home has been sold, the buyer is free to begin arranging conventional financing to replace the bridge loan. Depending upon mortgage company rules, the buyers may even be able to refinance instead of take out a new mortgage, and this can help reduce interest rates even more. Hopefully, the sale of the current home leaves the buyers with some cash to offer a sizable down payment, so they will come out of the process with substantial equity in their new property.
Besides just saving money and giving buyers the ability to act quickly, bridge loans can help private real estate buyers by giving them the ability to act quickly. This might be very important if the buyer needs to start a new job or simply wants to take advantage of a good deal that might not stay on the market long. Having the ability to secure money for a new house with a bridge loan may also reduce a lot of the stress that is normally involved in trying to sell one house and buy another one.