A hard money loan in Houston is a type of loan that uses property as collateral. These loans can help real estate investors purchase and rehab properties. If you’re considering investing in multifamily property, hard money may help provide some or all of the funding you need.
Why Use a Hard Money Loan in Houston for Multifamily Investments?
Hard money lending in Houston ais based more on the deal than your personal credit score. These loans are used for commercial properties. For instance, non-owner occupied multifamily properties. If you’re planning to profit from a property either through ongoing income or through resale, then you may qualify for a hard money loan in Houston. These loans offer fast closing and fewer qualification requirements. You can use hard money for many things. For example, property acquisition, rehab costs, or a combination of both. Many investors use hard money loans for multifamily properties that need renovations and updates to increase value and profitability.
Hard money loans are more flexible than conventional lending. Not only can you get hard money loans with a poor credit score or a high debt to income ratio, but the terms of the loans can be customized to your situation. One example is that your hard money lenders can utilize either loan to cost or after repair value to determine loan amount. Loan to cost (LTC) is essentially the total costs of real estate acquisition and rehabilitation. The lender provides a certain percentage of these costs for the loan. In other cases, the lender may provide funding based on after repair value (ARV), which is the projected resale value of the property after the proposed changes and renovations.
Keep in mind that a hard money loan in Houston is typically a short-term loan and may have higher interest rates. They also typically use the property you’re purchasing as collateral. Because of these particulars, hard money may work for your project or you may want to go with conventional financing for your multifamily investment. You can also use hard money to snatch up property fast and then refinance later with conventional loans if you need to act quickly.
Why Invest in Multifamily In Houston?
If you’re interested in multifamily real estate investment, the Greater Houston area might be a good place to start. The city is growing and thriving, constantly adding new jobs to bring newcomers to the area. What’s more, the multifamily market is having a hard time keeping up with demand, meaning there are many renters to choose from for multifamily properties. Multifamily properties also often offer good returns and cash flow. While management can be difficult without a property manager or property management company, many real estate investors find success in the multifamily market. Therefore, if you’re considering multifamily real estate investment, you may want to look in the Greater Houston area. Of course, make sure you do your research and due diligence to ensure it’s the right choice for you.
Texas Funding Corporation – Hard Money Lending in Houston since 1982
At Texas Funding Corporation, we specialize in private money lending in Houston. We offer fast close times, minimal paperwork, and no pre-qualification requirements when you need hard money loans. As a direct private lender, we provide collateral based hard money loans for commercial real estate. Our team offers creative loan terms and decades of experience to help you get the funding you need. Reach out now to get funding from our team.