A private money lender in Houston can help provide funding for many different projects. Commercial real estate development requires a lot of capital, so if you’re interested in development, you likely need quite a bit of financing to make your vision a reality. Fortunately, a private lender can help provide some of the funding for your project.
Commercial Real Estate Development vs. Investment
First, it’s important to understand the difference between real estate development and real estate investment. Of course, you can use a hard money loan in Houston for both of these endeavors. However, they are much different in terms of scope. Generally, a real estate investor simply buys a property, performs some work to enhance value, and then either rents or sells it for a profit.
A real estate developer, on the other hand, often has a much larger project on their hands. In general, the scope of development projects include securing land and building necessary infrastructure like roads, parking lots, and utility connections. Then, generally the developer constructs a building or group of buildings. This can be for commercial use or residential use. Once finished, they either sell the property or rent the property to turn a profit. Naturally, development projects often require quite a lot of funding to accomplish, which is where a private money lender in Houston can help.
Why Use a Private Money Lender in Houston for Real Estate Development Projects?
There are many different financing options for commercial real estate development projects. For example, capital from investors or traditional bank loans. Hard money is another option for securing financing for your development project.
Hard money lending in Houston is a good option if you need short-term financing. It offers a simple approval process and quick disbursement timelines. With hard money loans, the property itself serves as the collateral. This means we can provide funding for your development project even if you have poor credit. The details of your hard money loan really depends on many different factors. Because they are funded by private investors, there is no “standard” for approval requirements, and we are open to negotiation for many different factors of your loan.
In most cases, developers use hard money similar to a bridge loan. You can use hard money to help fill gaps in funding or to help stabilize cash flow as your project goes on. For most development projects, the developer then refinances, though if you’re nearing the end of your project and you plan to sell, you might choose to pay off the loan after the property sale. In any case, there are many exit strategies to choose from for your real estate development hard money loan.
Need a Hard Money Loan in Houston? Texas Funding is Here for You
When you need quick, straightforward, and creative financing options, our team at Texas Funding is here for you. We’ve been helping investors and developers since 1982 and are confident we can help find lending solutions to suit your needs. We offer private, collateral-secured loans to provide you with funding quickly. We can close in just days with minimal paperwork and higher loan-to-value ratios for your needs. Get in touch today to discuss your funding needs with our specialists.