Whether you believe it or not, Texas is an amazing place to invest in the real estate segment. Unlike any other part of the USA, it has an ever-growing economic rate and an excellent population flow. Nonetheless, the pricing of the houses here can be quite high, to be honest.
Therefore, if you want to invest here, it might be best for you to take a hard money loan. But, whom should you get it from? Let’s learn more about it
Best Hard Money Lenders
In this section, we’ll talk about some lenders that can help you make the most of the fix-and-flip opportunity you’ve found. Keep reading, then.
Option – 1: HouseMax Funding
When getting funding for your fix-and-flip venture, no one can provide as much flexibility as HouseMax Funding. With them, you can get pre-approved online. And for that, all you need to do is go to their website, submit your details, and that’s all.
And, there’s no need to worry about your credit score or anything at all. The organization will offer you the loan for whatever reason you want without asking anything.
Option – 2: Investmark Mortgage
A three-time award-winning loan provider, Investmark Mortgage covers from North Texas to South Texas efficiently. As they’re a direct lender, you won’t have to worry about paying additional money to a broker with them.
The processing fee of Investmark Mortgage is quite low. And, you’ll only have to offer 3% of the loan fee (2% at payoff, 1% at closing). Pretty affordable, right?
Option – 3: Longhorn Investments
Formed in 2008, Longhorn Investment provides a simple interest-only payment procedure to its clientele. However, with them, you have to pay quite a few fees, including
- The draw inspection fee,
- Loan admin fee,
- Credit report fee, and
- Monthly service fee.
Apart from these, you also have to reimburse a small amount of cash for your loan documentation. It might revolve somewhere around USD 475 to USD 500.
Option – 4: Peak Capital Funding
Unlike the former, Peak Capital Funding doesn’t only offer its service in a fix-and-flip industry segment. Apart from that, you can also get money from them to pay off your –
- Rehabilitation fee,
- Multifamily loan, and
- Commercial building (if you’re buying it for some reason).
Apart from everything else, you will have an LTV of up to 75%. And the loan rate is pretty low (around 10%-12%). You’ll get around 24 months to pay it off.
Option – 5: DFW Investor Lending
Like any other private lending organization, DFW Investor Lending also provides an interest rate of around 11.99%, offering a competitive rate. However, 2% to 3% of the origination fee will also be loaded here. But, the processing fee is fixed here at USD 595.00. So, that’s a relief.
One of the best things about DFW Investor Lending is that you don’t have to offer any kind of prepayment penalty at all. As of now, they have funded more than 500 projects.
So, they’re quite experienced, too.
FAQs – Frequently Asked Questions
In this section, we’ll talk about some of the things we couldn’t or didn’t do in the former. So, let’s not make any further ado and start with it.
What Credit Score Is Needed For A Hard Money Loan?
Usually, a hard money lender does not ask to see your credit score. Therefore, you don’t have to worry too much about it. However, as a rule of thumb, we’ll still ask you to maintain a score of around 600 to make the most out of it.
What Is A Good Return On A Hard Money Loan?
A typical hard money loan will come with a return between 8% to 12% of the overall lending amount. However, you might get even more money if you’re lucky.
Wrapping It Up!
So, that’ll be all for this article.
We hope we can offer you as much data as you were looking for here.
Nevertheless, if we omitted anything, don’t forget to comment below. We’ll try our best to reply to you as soon as possible!