Hard money can be an amazing tool for many Texas real estate investors looking to flip properties. However, just because hard money can help doesn’t mean that every lender is right for you. Here are a few things you should consider before considering your next hard money loan.
1. Educate yourself. Know as much as possible about the loan structure and payments before entering the loan. Hard money loans are a very helpful funding source for your next rehab project, but always know what you’re signing up for. The terms Loan Ranger Capital offers across the major Texas cities (Austin, Dallas, Fort Worth, and Houston to name a few) differ from many other Texas hard money lenders and banks. Although the loan is easier to obtain, because it is primarily based on the property’s ARV (after repair value), they’re typically for short-term borrowers.
2. Choose a trustworthy lender. It is most important to deal with a company or someone you trust and will be transparent with you at all times. Offerings from different lenders will vary significantly. Things to look out for such as: interest rate, origination points, loan term (length), and many others will alter, so you must work with someone who has your best interest in mind so that you can ensure success.
3. Know the industry. Make sure to do your homework before starting your fix and flip project. Make sure to have an idea of how much the property you’re purchasing is worth. How much is your repair budget? What is your target sales price? How long can I expect for this to sit on the market? These are just a few things to consider before starting.
In utilizing hard money, Texas fix and flips can be very successful and lucrative. If you have any questions feel free to contact Loan Ranger Capital. We pride ourselves on our ease of use and look forward to helping with your next investment!