(Most consumers believe that banks are the only place to go for a loan. But there are many legitimate private money lenders in Texas who can meet the unique needs of some borrowers.)
As the name implies, private money lenders in Texas are simply another resource other than the traditional banks and mortgage companies that many borrowers use. These are private individuals or even small private groups who are in business to loan money for a profit. In many cases, the borrowers are real estate investors who are looking to finance a property for a fix and flip or as a rental income property. Other borrowers are individuals who are financially challenged due to a poor credit score or other credit issues. And some borrowers are budding entrepreneurs who are in need of some money to bring their dream to reality.
The biggest benefit for many borrowers is that private lender's fund loan requests much more quickly than traditional lenders. Part of the reason banks are slow is that they require a huge amount of documentation to be sure that you have a good credit history and can afford the loan that is being requested. But private lenders are looking more at the value of the property that you are using to secure the loan. This asset-based lending principle means that creditworthiness is not as big an issue as the value of the collateral. In most cases, it is the property being purchased, but if the loan is to start up a business, then the collateral could be your personal home or other property that you own outright.
What private money lenders in Texas are looking for is a reliable deal. They are not in business to foreclose on properties and amass a portfolio of rentals. They are planning on taking a calculated risk to make a certain amount of profit in the form of interest. To ensure the success of their deal, lenders will want to see the contract for the property purchase, photos of the property and an executive summary of how you plan to be able to repay the loan.
What Private Lenders Have To Offer
You already know that private lenders will process a loan request much more quickly than a traditional lender, but there are other benefits as well. The private lender does not need to follow the same stringent processes as a traditional lender. This means that the terms of each loan can be customized to best meet the needs of the borrower. The length of time for a loan, the schedule for payments or even the options to refinance or pay the loan off early can all be negotiated with a private money lender.
Great Benefits At A Cost
Private money lenders in Texas offer many services that are not possible when financing through a traditional lender. The speed and convenience of private lenders cannot be achieved by any bank or mortgage company. And the ability to secure the loan with collateral rather than a credit score is also a benefit to many borrowers. But these services and benefits do come at a slightly higher rate than a traditional loan. Knowing the facts about private loans and hard money can help you to make the best choice to meet your needs.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
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.
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