If you are someone just starting in the real estate investment world, you need to learn whatever you can about lenders and how to get the financing to move forward. For a lot of people, this may include looking for hard money lenders in Austin to get the right amount of funding.
Once you hear the terms private money loan or hard money loan, what comes to mind? It is natural to be worried that you are not taking the best step to get the financing you need, so it is important that you learn all of the advantages that come from working with such a private money lending institution.
Years ago, there were a lot of poor examples throughout the lending industry of hard money lenders. However, when you look for hard money lending institutions today, you will see that there are solid companies to work with.
What is Hard Money Lending?
The term hard money loan is simply another way of describing a short-term loan that is secured using real estate. These loans are funded through a private investor, or a team of investors, rather than going through conventional lenders like a credit union or bank. The terms for such loans will usually last around 12 months, but the term of the loan can be stretched out to anywhere from 2 to 5 years depending on your situation. This is a loan that calls for monthly payments of the interest or the interest along with a portion of the interest. In the end, there is a balloon payment that marks the end of the term.
When it comes to the amount that the hard money lenders in Austin are able to provide, it is all based on the value of the property at hand. This property could be owned by one borrow that would like to use it as collateral, or the property could be one that the borrower is looking to acquire.
Does Your Project Fall Into Hard Money Lending Guidelines?
People can use hard money loans for a variety of reasons. You may be looking to buy a second property to flip, or you are looking to help out with a construction loan. Working with the right lending team will help you to not only determine the best loan to fall into your needs but also help you to ensure you are going through all of the steps in the right manner. Hard money loans are most often used in situations where there are:
- Credit issues with the buyer
- Land loans
- Flips and fixers
- Construction loans
- Fast action by the real estate investor
Do you still want to learn more about hard money loans and whether or not they are right for you? Our team at Bay Mountain Capital wants you to know that we are the hard money lenders in Austin that you need. Contact us today if you would like to learn more about short-term financing and how we can help you to get the funding you need for your next real estate venture. You can reach us by calling (214) 915-0435.