Texas is the second largest state in the U.S, and more than 29.1 million residents live there. So, real estate opportunities are there for real estate agents.
The versatile economy of the place, including agriculture and mining industries, are quite efficient in managing the resources of the people who live there. So, where there is an opportunity, there will be people who grab that opportunity.
However, the Texas real estate market is quite impressive to watch out for. According to the data, only 63.4% of people have their own house in the place, and others are living on rent.
This particular data suggests the opportunity for the real estate agents to go for the hard money construction process and make an efficient deal.
But what is a hard money loan?
What Should We Know About Hard Money Loans And Lenders?
Hard money loans are asset-based loans generally provided by individuals or small firms. Of course, there is a bigger risk in hard money loans with more interest rates. Still, if you look at it closely, you will see that there are people who consider hard money loans because getting a real estate loan from the banks may take a huge amount of time, and there is no surety to getting the loan.
On the other hand, people who have low credit scores and are not able to get loans from the bank have this one option left to boom into their real estate business by taking loans from hard money lenders.
The risk is also high for the lenders, and they decide on high-interest rates so that the borrowers try to pay the loans as early as possible. However, typical hard money loans can be taken mostly for five years.
Hard money loans are also used for flip and flapping a house (renovation).
Real estate deals are certain deals, and sometimes exciting home selling and buying opportunities come and go like express. This is where real estate investors do not want to lose the opportunity and seek some escape route to ensure a better deal with future opportunities.
It may not be common for you but for investors taking out a loan for business purposes is common.
Best Texas Hard Money Consultation Lenders
There are various lenders available in the hard money market. Some of them focus on providing loans to experienced real estate investors, and others keep trust in the people who are investing in the real estate business for the first time.
Well, we have a quality, concise list for you to go.
1. HouseMax Funding
This real estate expert serviced thousands of agents and helped to flip over 3,000 homes. Its popularity also considers the $750 million selling of residential property.
On the other hand, this Austin-based lender provides a minimum loan of $75,000 and tries to lend almost 75% of the total repair value of a house.
2. Stratton Equities
Being invented in 2017, this firm has over five years of experience as a hard money loan provider. In the private lending market, they ensure loan amounts between $100,000 and $5 million.
The interest rates of this firm are 7.25% on average, and you can even avail of it as a foreigner.
Being founded in 2018, they have almost four years of real estate experience. However, this hard money lender considers single and multi-family housing processes with a minimum credit score of 600.
The interest rates start here from 8.50% for lending money. In addition, this lender is efficient enough to manage the upto 90% of the total project cost, which is very high compared to others.
4. Fund That Flip
This is a unique hard money loan lender that focuses mostly on short-term bridge loans. So, investors who are looking to flip their houses can easily trust this lender.
However, a 10% down payment is required to get their benefits. They are the direct lenders, so you do not have to lose your money in the middle.
5. Easy Street Capital
Except for North and South Dakota, this hard money loan provider works almost nationally. The interest rate can range between 6.9% and 10.9%. They are famous for quickly managing loans for investors.
Why Are These Loan Lenders Better Than Others?
All the above-mentioned hard money loan providers have good experience in the field of at least four years. On the other hand, these small firms are trying to capture the loan market for real estate investors to mitigate the deficiencies of traditional loan providers.
So, they are modern enough to find a better solution and keep you as their consumer.