Even with higher interest rates than traditional loans, hard money loans austin offer some great benefits that are opening doors for many investors in the real estate industry.
Hard money is not some less than legit lending resource that is found in dark alleys and the dark web. In reality, hard money loans Austin are simple loans that are funded by individuals rather than traditional banks or credit unions and that is why they are referred to as non-traditional loans. And because borrowers are not dealing with huge companies and corporations, these non-traditional lenders can offer some great benefits and advantages.
The most commonly known benefit to hard money loans Austin is the unique criteria that the lenders use to determine whom they find and whom they deny. Unlike traditional lenders who require a great credit score and credit history, hard money lenders are mainly focused on the current market value of the property that is being purchased. So even if a borrower has less than perfect credit, he or she has an excellent chance of securing hard money.
Another great benefit of hard money is that the funding is coming from a person or a small group of people who operate under their own guidelines. They are not entrenched by rules and criteria set up by a large corporation which means that they can be much more flexible on all aspects of the loan. This means that borrowers can negotiate for terms such as the length of the loan, the fee structure and even an option to extend the term of the current loan. Having the ability to customize loans can be a huge benefit to many borrowers.
Speed Is Good
Being that hard money lenders are individuals or small groups; the processing of loans is extremely fast in comparison to a traditional loan. Hard money is often approved within just a few days and can be funded in just a few more. At its best, the process can be completed in about a week as compared to traditional lenders who sometimes take months to process an application only to turn down the borrower’s request. This fast approval and funding mean that borrowers can take possession of their new property much faster. In the case of an investment property, this fast action means that investors can process more properties and make greater profits.
Best Uses Of Hard Money
Hard money loans Austin are not the solution to every borrower’s needs but there are certain applications that they are perfect for. If a borrower needs the funding quickly for a great deal then hard money is likely to be the only option. And for a fix and flip where the loan only needs to extend for a short period of time, then hard money is perfect. And even for the consumer who is rebuilding his or her credit but is not quite able to secure traditional funding, hard money will work as a short-term solution until the loan can be refinanced. When used properly, the benefits of hard money are hard to beat.
Texas Tel: (512) 516-1177
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.