Longhorn Investments was created in 2008, and since its inception, it has been funding thousands of loans. We have complementary businesses, including a title company and a real estate law practice operating out of our corporate office that can put investors through all aspects of all transactions using our rich experience in this field. Longhorn Investments is your best option for a hard money lender, whether your investment strategy is flipping or long-term rentals.
Longhorn Investments Houston TX is a hard money lender in Houston. Houston is an excellent choice for real estate investing as it continues to grow and expands. However, if you don’t have a reliable source of financing, you may miss out on the opportunity—that’s why Longhorn Investments is here for you. Whether you are flipping or renting a house in Houston, we are on call, ready to ensure that you obtain the funding you need. Our investors can maximize real estate investment opportunities in today’s growing Houston market with our complex money lending products.
Longhorn Investments Guide to Hard Money Loans
A real estate investor’s friend could be hard money loans. The statement does hold water, as cliché as this may sound. For real estate investors looking to supplement their investment deals, these loans provide a stable flow of funds. A hard money loan is a valuable tool to keep in one’s toolbelt whether an investor needs to quickly close on an undervalued property or fix it up for a prospective buyer. Hard money loans do have costs. The key to making the most of a real estate investor’s most significant capital source is understanding hard loans. Several seasoned real estate investors are familiar with the gist of hard money loans. However, various individuals don’t understand the actual mechanics of how they work or what they indeed cost. Longhorn Investments has taken the time to break down the basics of hard money loan costs and interest rates.
Hard Money Loan Hire Purchase Rates
Hard money loans are short-term loans based on hard assets. They are also known as bridge loans. Before agreeing to lend money on a deal, most reputable hard money lenders will look at both the asset and the creditworthiness. The requirements and paperwork involved are often quite a bit less stringent than a conventional loan. Therefore, hard money loans can typically close in days instead of many weeks. They also can fund more money into a transaction that requires less money out of pocket from the borrower. This is the primary drawback of hard money loans, even though it makes them more attractive. Funding more money and giving out loans with more detailed underwriting requirements means a more significant risk to the lender. This results in charging high interest rates to mitigate the risks.
Getting Better Interest Rates on Hard Money Loans
One may lower the interest rates of hard money loans, although the interest rates are typically higher than conventional rates. The following are some things that one can do to lower the monthly payments.
- Increasing a down payment
- Improving personal credit
- Complete and pay off multiple loans with a hard money lender.
Closing Costs on Hard Money
Additional hard money costs include the following other than the interest rates;
- The origination points; points cover the costs of processing and borrowing a loan. Hard money points are usually higher than those of a conventional one. The origination may be anywhere between 1% and 5% of the total loan based on the specifics of the loan and the lender.
- Underwriting fees, the lender must legally secure their interest in the property placed as collateral to secure a hard money loan. Both parties have to agree to these terms in a legally binding agreement to achieve this.
Requirements of Getting Hard Money Loan
Even though hard money loans are easy to access, it doesn’t mean that lenders can give their money to anyone who goes to them.
- Borrower qualifications; two leading indicators of how likely a borrower would be to pay back the loan promptly are the borrower’s reserve and the creditworthiness.
- A down payment or skin in the game
- A flexible deal
Do not let the opportunity pass you by if you are confident that a property has the potential to generate a healthy property margin. Apply for a hard loan with Longhorn Investments House and get started right away.