How can Hard Money Lenders in Dallas help you with your real estate investment?

Hard money loans are the best friend of real estate investors. These loans are the quickest way to secure a deal. However, hard money lending might be complicated and therefore you should know what you are receiving before making decisions. The more you know about hard money lenders Dallas, the better for you. Hard money loans are the biggest source of capital these days.

What are Hard Money Loans?

Hard money loans are loans that are issued to investors based on property or hard assets. Though hard money lenders consider some factors such as credit, income, and experience of the individual borrower, they are not a high priority while deciding the eligibility of borrowers and the loan amount. These loans are available with higher interest rates and they have a shorter-term period of say 12 months. Hard money lending is a quicker kind of funding and the loans are issued within days and weeks rather than months.

Need for Hard Money Loans

Real estate investors focus on fix and flip properties and rental properties and they turn to these loans as their means of financing at a time when they have failed to get conventional loans from banks. The investors, who are unable to meet the bank standards including income and high credit score, find hard money loans a great alternative kind of funding.

Finding hard money lenders

Many new investors want to know how they shall find lenders of hard money for financing their projects. There are a few simple ways you can get these loans including the following:

·         Traditional Lenders or Real Estate Agents- Ask the mortgage broker or the realtor whether they know any hard money lenders

·         MeetUp meetings- Hard Money lenders speak at real estate events. You can ask fellow members whether they know trustworthy lenders or not.

·         Google Hard Money Lenders- You can google and find them. However, be careful as there are many rogue individuals. Talk to people and ask for references to receive their opinion.

Using hard money loans

Hard money lenders issue loans related to all kinds of property, however, there are certain kinds of investments that are made for hard money. Construction loans, rehab projects, and land loans are financed through hard money.

It does not indicate that other investments cannot be financed by hard money. When the buyer of any property has to act quickly or has credit issues, he should seek hard money loans due to the convenience and speed offered by this loan.

Hard money lenders versus other lenders

The main difference you will find between hard money lenders and other lenders is that hard money financing does not give importance to credit history or your income. Rather, hard money lenders Dallas see the value of the property as its deciding factor and puts emphasis on the after-repair value.

Some other differences are:

·         Hard money loans are for a short term. The borrowers cannot have a repayment period of 15-30 years. These loans have 6-18 months repayment period.

·         A hard money lender does not invest in owner-occupied residences as these properties have many rules and regulations.

·         Hard money lenders give their own money or they raise it from investors. This loan amount is based on property specialization and the risk they are comfortable with.

·         Hard money lenders have flexible negotiating terms. They have specific interest rates, upfront points, and defined durations.

Hard money loans for real estate are common nowadays in housing sectors. These loans give investors an edge over traditional financing. The borrowers can get capital faster and thus if you want to fund any deal, it is difficult to ignore hard money loans.