Finding the right hard money lender can help first-time and even seasoned real estate investors succeed at their chosen field. There are several factors to look for and reasons why this type of financier is good for those entering this challenging field.
A hard money lender is a private investor who lends based on collateral. Usual terms are anywhere from 6 to 12 months, although many will extend these depending on the individual circumstances. One of the benefits of this type of investor is that they are much more prone to develop a personal, though business-based, relationship. It’s a lender that you can often call for advice and, if the relationship proves beneficial for both parties, many years of lending and borrowing on various real estate projects can be expected.
So, just how do you find these private money lenders? There are several ways to track them down. Before the advent of the World Wide Web, most Texas private lenders were found through networking or introduced by friends or family. In the shrinking world that we live in now, lenders can be found in a matter of minutes with just a few minutes of browsing. This, of course, makes it more important than ever that a borrower understands the basics of lending and what to look for in a private hard money lender.
While the basic benefit of a hard money lender is considered their process of lending based on assets instead of credit, there are additional attributes to look for. If the borrower is looking to get into this lucrative business for the long haul, they will want to consider a lender that they feel comfortable with, and one that they can turn to for multiple projects. When looking online, be sure to check for reviews and don’t hesitate to request references. Lenders often specialize in certain fields, so be sure to choose one that has experience in your field whether it be the fix-and-flip model, renovating and renting, or quick turnarounds on ideal properties that require little makeover.
Property Types for Texas Hard Money Loans
Most commercial properties will fit into a private investors lending model. Just be sure, as we mentioned, to obtain a lender that specializes in your type or investment strategy. These may include multi-units, single family homes, commercial properties and even industrial properties such as warehouses or distribution centers. One area of investing that Texas private lenders use to steer clear of was properties with no buildings—just land—and mobile or manufactured homes. Fortunately, times are changing.
At Level 4 Funding, we offer construction loans, bridge loans, loans on multi-family units, as well as manufactured homes, warehouses, and distribution centers.
Because we work with hundreds of private lenders, we undoubtedly have an investor that specializes in your field. It’s not uncommon for a borrower to have several lenders to choose from. At Level 4 Funding, we are here to steer you through the process and help you make choices that are best for your real estate investment business. Call us for a no-obligation quote, or two.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.