What Are the Advantage Of Working With A Texas Commercial Hard Money Lender

Most of the REI pros will agree with the fact that very few things are easy when it’s about investing on real estate, but working with a Texas commercial hard money lender does not have to be difficult. Comprehending the facts, learning the procedure, assessing the possible advantages & knowing the “how-to’s / don’t-do’s” will make your borrowing experience incredibly easier. In this post, we’ll discuss what a hard money loan is, when it makes sense to employ a hard money loan & the advantages of employing hard money lenders versus conventional lenders. 

What’s a hard money loan:

Generally speaking, hard money loans are offered by a private lender or firm for investment or commercial purposes. They usually have lesser borrower qualifications & take less time to close than a conventional loan. Loan sums usually encompass rehab financing to accomplish an approved range of work being performed on the subject property. However, it must be noted that hard money lenders usually put more focus on the subject property & loan-to-value proportion instead of potential borrower’s credit; borrowers still need to apply for, qualify for & agree to the terms of the hard money loan. 

What are the four basic types of hard money loan?

·         Fix and Flip Rehab loans

·         Commercial loan purchases

·         Refinance loans

·         Cash out refinance loans

When does a hard money loan make sense?

A hard cash money loan could make sense in any of the following scenarios, and also many others.

• The Borrower has a unique opportunity (such as a discounted payoff, etc)
• The subject property is not currently listed (such as a short sale, foreclosure, etc)
• The borrower has to close quickly
• The borrower does not qualify for a conventional bank loan
• The subject property is vacant
• The subject property needs rehab
• The borrower is looking for a cash-out refinance on an investment property

The benefits of working with Texas commercial hard money lender:

The info above & the list below outline some of the advantages that hard money lenders can provide but conventional & traditional lenders can’t.

·         Easier application procedure and Asset-based with more collateral choices

·         Lesser borrower eligibilities

·         Quicker approval procedure & closing

·         Lesser hoops to jump through

·         Included cost of rehab and construction

·         Amounts based upon the borrower and subject property needs

·         Access to more capital & financing options

·         Lower Down Payments

·         Faster & easier access to funds

If you want to work with a hard money lender for your commercial lending in Texas, look no further than Commercial Loans Of Texas. We have been closing Texas commercial loans since 1998. Feel free to call us today at (888) 727-3057 for a hard money loan in Texas.