You may be turning to a private hard money lender for needed capital for a business loan, a real estate investment, or the purchase of a new home. Whatever the reason, there are a few tips to consider that may just help you get the Texas Commercial Loan you are seeking.
A hard money lender bases their loan on the collateral supplied by the business, property or home you are purchasing. In addition to using the collateral of what you are purchasing, you can also use personal assets such as your existing home, vehicle or other personal property. If you are applying for a Texas Commercial Loan for an existing business, you might consider using the equipment as collateral.
Have a business plan and budget. If you are applying for a buy and hold or a fix and flip real estate investment, take pictures of the property’s interior and exterior. Because a hard money lender is more concerned about your asset than your credit score, they will want to know that you know all that goes into a renovation or rehab project. To this end, unless you are planning on doing all the work yourself, be sure to get bids from contractors and include these in your budget. Have a detailed plan and know your numbers.
In most cases, your payments will be interest only until the end of the project, or your home sells, or the accounts receivables from your business starts to flow in. Because of this, private hard money lenders require an exit strategy. How do you plan on paying the lender back at the end of the Texas Commercial Loan terms or when your project is complete? For instance, a loan for a fix and flip property usually has its sale as the exit strategy. They will want to know that you know what you are doing. Again, if it’s a fix and flip property, what is your knowledge base regarding markets, construction and real estate? Do you have a real estate license? All the better.
Documentation for Texas Commercial Loans
Hard money lenders differ in their required documentation. Most will require a purchase contract or, if you are refinancing, a payoff statement. A proof of funds statement may be required in order to verify that the borrower has enough money for the down payment. This is usually in the form of a bank statement. Proof of insurance will be required. If this is a real estate investment that is going to require renovation and rehab, they will also want to see your budget, plans and exit strategy.
Many contractors and real estate investors turn to private hard money lenders for Texas Commercial Loans.
At Level 4 Funding, we offer construction loans with terms up to 24 months with monthly draw programs. These loans are easy to qualify for and quick to fund. Funding for commercial and residential real estate is available for up to $50,000,000. The documentation we require is a copy of your budget, plans and permits. Call us today for a no obligation quote.
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.