When it comes to hard money lenders Texas real estate investing is one area where they can come in handy. Particularly if you are interested in rehabbing houses or taking over some incomplete projects, sometimes it is difficult to get conventional financing. And, even when you can, sometimes they do not offer the best options. Check this tips from fha loans Houston below.
Banks will only finance 80% of the purchase price. Meaning that out of your own pocket, you must come up with 20%, plus closing costs, plus money for construction. If you have done your research and put in your time looking for a deal that can turn a true profit, you can sometimes double your investment, but until you resell that house, all of your capital is tied up. If you find another great deal, you won’t be able to buy it. That’s why hard loan money Texas providers are a better choice.
Unlike bank loans, Texas hard money loans can be used to cover 100% of the purchase price, if the after repair value is high enough. Conventional lenders never look at the after repair value, since it is an estimate and sometimes difficult to calculate. …