If you’ve worked with Texas Hard Money Lenders before, you know how they operate, but if you’re applying for a loan the first time, it can be difficult to know what to expect. Arm yourself with the information you need to spot a bad deal, so you can have a successful venture.
Outright scams are incredibly rare when it comes to Texas Hard Money Lenders. The only news-worthy case in recent history involves investors who believed they were funding deals and unfortunately lost $1.2 billion, according to a Mortgage Professional America report. On the borrower side of things, similar events are largely unheard of, but the story highlights a major point. When you’re borrowing from Texas Hard Money Lenders, you’re usually being funded by private individuals. The regulations regarding the loans are different compared to what you’d find with a traditional business loan and the approval process is unique too. How can someone with little experience stay protected in uncharted waters?
For starters, it pays to watch for offers that promise way more than others are doing. For example, ultra-low interest rates can signify there are hidden fees or a promise that the group will fund any deal should raise red flags. Realistically, no investor could fund all deals because not every borrower is a safe bet.
Secondly, serious investors are going to investigate you and your proposals. More often than not, people turn to alternative funding because a bank loan isn’t going to cut it, so investors must be incredibly diligent about checking into things before funding. If they don’t personally check out a property or business site or send someone out whom they trust prior to approving, that’s also a red flag. They should be going over your application with a fine-toothed comb too. If you have a broker helping you through this process, you might not notice any hitches because he or she will likely catch anything before an application is submitted, but it’s something to be aware of if you’re going it alone.
Thankfully, it’s usually easy to tell who’s legit and who’s not. Authentic Texas Hard Money Lenders will have an established web presence going back many years. Anyone who isn’t doing business on the up-and-up can’t keep using the same name because it will get tarnished fast. While every company that’s been in business for an extended period of time will likely have a couple negative remarks purely because they’re coming in contact with the general public, you should be able to identify an overall trend in the business reputation.
Whether you’re working with a broker or directly with your investors, the aim is always to cultivate lasting relationships. When you’re successful, they’re successful, so they want to fund your deal and have you come back again. Even if a team cannot help you this time, they will still treat you with respect with the hopes that they can help you the next time.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions