How to Risk Less with Texas Hard Money Lenders

If you need a hard money loan, Texas hard money lenders can be your best friend. From less paper work to faster closing times, there are many benefits to using a Texas hard money loan compared to a bank loan. However, since a hard money loan is more investment driven, it is important that you take all necessary steps to minimize your financial risks and maximize your rewards. 

If you are in the market for hard money loans Texas investors use and trust, then you need Texas hard money lenders. A Texas hard money loan is a specialized type of financing that uses real estate to back the loan. Hard money loans are primarily used as investment loans or short term financing until a regular loan can be obtained. They are used for fix and flip investments as well as bridge financing. Hard money loans can also be used as a short term loan when cash is needed for something like an auction purchase that is then refinanced to a traditional loan at a lower rate. The primary reason that hard money loans are used as short term investments is their higher interest rates.

There are several benefits to hard money loans for borrowers. Firstly, hard money loans from Texas hard money lenders have quick closing times. This helps Texas investors get cash fast to be able to make strong offers, financing in hand. Secondly, hard money loans are not contingent on the borrower’s finances so investors with bad credit or a high debt to income ratio can still get the money they need. Finally, hard money loans are flexible with the option to cross-collateralize and borrower more or even extend the terms of the loan if necessary.

Texas Hard Money Lenders Want YOU to Know, 3 Ways to Minimize Risk with Hard Money Loans

While there are many benefits to hard money loans, there are still risks involved. In order to help protect yourself and your investment, here are three ways to risk less.
1. Have the property purchase you are making appraised. The number one way investors lose money with hard money loans is by a home not selling for as much as they thought it would. Have the property accurately appraised before you buy it. This will help you risk less. 
2. Make smart renovation choices. If you are renovating an investment property, Texas hard money lenders recommend that you choose your renovations carefully. Spend your money where it really matters and remodel the home in ways that will get you the most bang for your buck. 
3. Pay  the loan off quickly. The truth about hard money loans Texas investors rely on is, they have higher than average interest rates. The faster you can pay the loan off, the less the interest rate will matter. 

Once you have decided that a hard money loan is the right choice for your investment, find Texas hard money lenders to lend a helping hand.

Here are Level 4 Funding we have loan officers who specialize in Texas hard money loans. Call our office today to get your questions answered and get started today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:      (512) 516-1177

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701

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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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.