Obtaining that first Texas Commercial Loan is one of the major stumbling blocks that keeps want-to-be real estate investors from turning their dream into a reality. There are options and one may be just the right one for your needs.
If lack of funds is holding you back from making your move into real estate investing, don’t let it. Very few investors make all cash offers or have the 20 to 35 percent down and high credit scores that some conventional lenders require. These lenders are often banks or credit unions and, while a good option for those that are approved, they do take time to fund—at least a month in many instances. There are alternatives.
Participating Mortgage or Joint Equity mortgages offer alternatives to traditional lending. In a participating mortgage, the lender is offered a percentage of the resale proceeds if the investment is a fix and flip model, or they are provided with a share of the rental income if the property is a buy and hold. In a joint or shared equity mortgage, both lender and real estate investor agree to share capital, risks and rewards. These individuals or groups come together for one project, which is what makes it different from a partnership. Investors often use this strategy when they are looking for knowledge and experience as well as funds. Like any partnership, it’s important to make sure that the two of you hold the same values and vision.
Crowdfunding has become a growing avenue for obtaining Texas Commercial Loans for real estate projects. Equity investors hold a stake in the property while debt crowdfunding, also known as peer-to-peer, investors are paid back in regular monthly installments with interest over a period of time, usually three to five years. Both are funded by numerous individual investors, some of whom may make an investment with as little as $1,000. This type of lending usually requires strong credit scores and solid business plans.
Private hard money lenders offer asset-based loans that are typically short-term in nature and provide access to quick capital. Terms are anywhere from 3 to 60 months. Credit scores and creditworthiness is typically not as an important factor as it is with other types of Texas Commercial Loans . The loan is based on the property that you are using as collateral, whether the investment property or your current home. As well as a budget and plan, most private hard money lenders require a good exit strategy which will let them know how they will get back their money at the end of the build-out or renovation. An exit strategy for a fix-and-flip property is typically when the home or property resells while, for a buy and hold investor, it may be when they obtain a traditional loan after the property has been repaired and rehabbed.
A private hard money lender provides asset-based Texas Commercial Loans . Credit scores are, typically, not as important to funding as is the collateral.
At Level 4 Funding, we offer quick access to capital. Approval is often determined within 24 hours of applying and capital may be available in as little as two to three days. Call us to see if we are the right private hard money lender for your real estate investment needs.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.