Hard Money Lender in Dallas, TX

Hard money loans make a fix and flip mortgage possible. It comes from private individuals or companies that accept assets or property as collateral. Borrowers can use them to pay off a mortgage or loan application denied. That allows them to avoid lengthy approvals for traditional loans.

These types of loans are secured loans that have the property as collateral. If the borrower defaults in repaying a secured loan, the lender can seize the asset. Private lenders are more flexible than traditional mortgages or other secured loans. These loans are outstanding for those who need to buy a property quickly.

A mortgage application can take over a month to process. In a matter of days, our loans can be closed.

Real estate investors, house flippers, and developers often use hard money. These loans are a faster and more convenient way to finance an investment purchase. They don’t require traditional financing or the approval process required by most financial institutions. These types of loans do not require a borrower to have good credit.

 A Quick Hard Money Loan Overview

• Used for real estate transactions. They are money from an individual, company, or institution and not a bank.
• Quick way to raise funds, but they have a higher cost and lower LTV.
• The funding process is quicker because they are secured and not dependent on the applicant’s financial situation.
• Often subject to negotiation between the lender as well as the borrower. These loans often use collateral such as property.
• Lenders can still make a profit by collecting collateral if the borrower defaults.

These loans are used to finance a property that is being renovated or developed and then sold for profit. A hard money loan is more attractive to investors than a conventional loan due to its ease of access. Lending options from financial institutions can be difficult to approve and require a lot of paperwork.

The real estate project’s potential typically secures hard money loans. It makes approval much quicker. We will generally review the property and decide on lending within days.

The loan terms are based on the collateral value and not the creditworthiness. Hard money lenders are not traditional lenders like banks. Instead, they are private individuals and companies who see the value in this type of risky venture.

Home flippers may seek funding if they plan to renovate the property and then resell it. Often, the loan is paid off within one year.

For providing the loan, hard money lenders often charge fees. These fees are known as “points.” Points are equal to one percent of the loan amount and can range from 2% to 3%.

The interest rates for a hard money loan vary depending on who is lending it and the deal. Most lenders will offer loans with a fixed rate of interest. However, there are some cases where you may be able to negotiate a floating rate. Hard money loans have an interest rate between 11.99% and 13.99%, depending on the lender and the calculated risk.

A great way to finance a real estate investment is from a private lender. They are a fast and easy way to get financing. You get access to the funds faster, and the loan is based more on the asset purchased than the borrower’s credit or personal approval. You should ensure that you choose a trusted private money lender with a proven track record in the field when searching for a hard cash lender.

These loans may not be the right choice for everyone. You will pay a higher interest rate than a traditional owner occupied property. These loans not only have higher percentage points than traditional loans but may also include origination points.

Let’s see how DFW Investor Lending ,LLC compares to traditional mortgage financing options.

Hard Money Loan

You are approved based on the value after completion. We will conduct a quick credit and financial assessment, but it won’t be as thorough as traditional loans. That allows a quick loan process, and they can receive their money in days instead of weeks or months.

The downside to this process is that the lender takes on more risk. That means the borrower will have to pay more. Our have a higher interest rate and require higher down payments than the average loan.

These loans often must paid back within 12 months. It contrasts with traditional mortgages, which have words that can last for 15 to 30 years.

Traditional mortgage loan

Traditional loans are not well-defined. You apply for the loan, and the lender checks your credit to make sure you can repay it. They will review your finances once they have approved your application.

Many different types of loans fall under this umbrella, including mortgage loans, auto loans, personal loans, or home equity loans. Private lenders can provide these loans, but they don’t have to meet the exact requirements of traditional lenders. Private loans may be more expensive and less beneficial to borrowers due to the risk involved.

Traditional loan lenders will review your financial history and evaluate your income. They will also assess your cash reserves, credit history, and down payment. The lengthy process is necessary to lower the risk lenders take when lending money. If borrowers show good credit, lenders can offer more affordable rates and lower interest rates.

These are the top reasons why people get hard money loans.

Flipping a House

Real estate investors who make money by purchasing low-cost properties needing fixing up, making value-boosting repairs and renovations, and then flipping the homes for profit.

Because real estate professionals & flippers are usually able to complete projects quickly, they prefer to obtain financing quicker. House-flippers can often sell a house in a brief timeframe – typically less than one year. It means they don’t need a longer loan term than traditional mortgages and can secure rehab loans with the repair value.

Buying Investment Property

Individuals who are not eligible for traditional financing but want to invest in a rental property may be eligible to receive a hard money loan.

It’s a good option for those who cannot get traditional loans approved due to their credit history or need more money than a conventional lender.

Commercial Property Purchase

If traditional financing is not available, a business owner can also borrow hard cash to finance commercial actual property purchases. Lending is available for entrepreneurs who can’t get conventional financing or have limited funds to pay for commercial loans.

What Are The Current Hard Money Loan Rates in Dallas, TX?

Private money can be costly. Let’s compare interest rates on these loans to more traditional loan types.

According to Freddie Mac, in January 2020, the average rate on a 30-year fixed-rate loan was 3.622%. Our loans are often between 8% to 15% and come with higher interest rates.

They can also be more expensive depending on the lender’s preferred loan-to-value (LTV) ratio. If a lender is only willing to finance 70%-80% of the property’s value, you will need to make a significant down payment before the loan can close. If you don’t have enough money, you might not have hard money financing.

Fix and Flip Loans

Our fix and flip loans are guaranteed to transform the way you view flips. Yes, we provide the evident capital but also offer our industry-tested advice.

We have mastered the skill of flipping, appraising, and wholesaling. For this reason, we have enough wisdom to excel in your process. Buying an investment property and restoring it for a high ROI should not be taken lightly. Many moving parts to this equation and a slip in the wrong direction could have monumental consequences.

It would be best if you had someone by your side throughout the entire process. We are your go-to lenders… and beyond.

The Dallas real estate market provides excellent profit-generating chances for all kinds of investors, from novice purchasers to experienced specialists. In Dallas, big apartment and single-family houses represent the bulk of the city’s real estate stock, with studio apartment structures representing most of the staying homes. Owner-occupied and renter-occupied real estate is discovered in equivalent quantities in Dallas.

• Population Predicted to Double in Next 15 Years
• Dallas is among the leaders in the U.S. for work and population development.
• 52.9% of Dallas leas vs. 33% across the country.
• The need for rental lodging is increasing year over year.
• Low entry rates for Dallas financial investment homes.
• Recently renovated REOs (2004 or more recent).
• Residence 5%– 15% listed below market price.
• Cap rates above 6 percent.

Dallas-Fort Worth-Arlington City house worths have increased 19.4% over the previous year, and the most recent projection is that they will increase 14.5% over the next twelve months.

Dallas County house worths have increased 16.4% over the previous year, and the most recent patterns reveal that costs will continue to grow at a slower rate over the next twelve months.

• The typical house worth of houses in Fort Worth is $260,859, up 20.8% over the previous year.
• Over the next twelve months, Fort Worth house rates will continue to increase, however, slower.
• The typical house worth of houses in Arlington is $270,421, up 20.5% over the previous year.
• Over the next twelve months, Arlington house costs will continue to increase, however, slower.
• Texas (Statewide) house worths have increased 16.6% over the previous year and will continue to grow in 2021.

Numerous investors have questioned whether acquiring a residential or commercial property in Dallas is an intelligent monetary choice. You must dig deeper into the regional patterns if you want to understand what the genuine estate market will be like for actual estate financiers and purchasers in 2021. The Dallas real estate market is an exceptional location to buy earnings residential or commercial properties, whether you’re acquiring your very first or just including another to your portfolio. It does not get a lot more “place” than this when it concerns reality.

Private individuals and companies can provide hard money loans. Therefore, loan requirements may vary between lenders. The borrower usually deals directly or closely with the lender and, thus, can negotiate better terms. You might have to provide additional information if you are a first-time borrower. Lenders will typically review the borrower’s financial history and verify the asset’s value before granting a hard money loan. Usually, a down payment of 30% to 40% is required to secure the loan.

If you’re a local real estate investor looking for a Dallas hard money lender, let’s talk. Dallas is a great place to invest in real estate. We are here to provide you the money you need to secure your home investment.  We aren’t just hard money lenders, we are also investors and appraisers.

We not only provide you with fix and flip loans, our services include FREE Consulting. We understand the stress and worry that comes with home investing- that’s normal. We’re here to help you be profitable.

You don’t have to do it alone! Our team is multi-faceted. We are Fort Worth hard money lenders, appraisers, flippers, advisors, and underwriters. By utilizing our unique, hard money loan calculator, we bring you the best financial rates Dallas, TX has to offer.

Best of all, we are local lenders. We are located in the DFW Metroplex. Serving our local community means everything to us. The ability to have a positive impact on nearby investors inspires us to work even harder and pursue the best options for our clients. The possibilities drive us.

Next Level Service & Transparency

When you work with our dedicated team members, you will receive unwavering support and advice. We have been through the process and can anticipate challenges and bumps in the road. We believe in authenticity.

That is why we eliminate the “middle man.” We are the administrators. All of our clients deal directly with us. Unlike many “lenders” claiming their services in a particular city (meanwhile, their offices are in another state), DFW Investor Lending has real roots in Dallas. We service the community with pride and integrity.

Fair Rates & Generous Lending Guidelines

Our Dallas hard money loan rates are of the highest caliber compared to our competitors. We not only offer fair interest rates but take each of our deals very seriously. When we lend, we are considering the real estate property first and the borrower second.

We are determined to help you reach your home investment goals with the most structured and unrivaled loan programs. Our loan program profitability calculator accurately provides your monthly payment and the potential profits from your deal.

As stated above, there is absolutely no fee for early payment. That means you can pay off your loans anytime within 12 months with no penalties.

Origination fees are kept as low as 2-3%! Our loan term is conveniently set at 12 months to provide realistic and smooth repayment. We never charge a prepayment fee. We always put our client’s interests first.

How Do I Get Started?

Are you ready to tap into your limitless potential in the real estate arena? Are you excited to work with mentors who will advocate for your success in every way possible? If so, we are glad to have you.

Call us to get started on your transformative journey. One of our kind and dedicated team members will be glad to assist with any questions you may have. We take pride in our customer service and are here for you. (214) 382-2676. We are open Monday through Friday, 8:00 am – 5:00 pm CST.

If you prefer, fill out our online application form for convenient online access. We will review your application and be in touch shortly.

If you have any other questions and would prefer to reach out via email, simply fill out the online application form here on our website, and one of our team members will promptly respond to your inquiry.

We look forward to showing you all the possibilities of our loans. From brand new to seasoned investors, DFW Investor Lending is your go-to lender.