Hard money loans in Houston Texas come in various forms. Fortunately, this type of financing is here and available for real estate investors, for a variety of reasons. For those unfamiliar with hard money loans, these are debt instruments that offer reasonable interest rates, flexible terms, and are ideal for short term projects. Read on to learn more about hard money loans in Houston Texas and throughout the Lone Star State.
Hard money loans in Houston Texas usually come from specialty lenders, including private investment groups. If you’re just coming across the term hard money loan, you’re probably wondering what it is and how it works.
What are Hard Money Loans, Anyway?
The simplest way to describe a hard money loan (also known as an asset-based loan or bridge loan), is a short term arrangement that allows an investor to borrow funds to finance a real estate project. The financing is backed by the real estate asset and most come with six-month term to a year to eighteen months, and even up to five years.
How Do I Get a Hard Money Loan?
Unlike traditional banks, hard money loans in Houston and elsewhere are available through specialty lenders or private investment groups. Because of this, there isn’t bureaucracy involved in the process and therefore, funds arrive in a very short period of time. It also means being able to customize hard money loans for the deal itself, rather than a one size fits all approach.