Private Money Loans
Texas private money loans are a form of real estate investment financing that is designed for short-term ventures. Instead of carrying long-term commitments that last for several years or decades, these debt instruments offer schedules that are much more suitable for investment projects, such as fix and flips. Plus, they are available through unconventional lenders, meaning there’s no corporate bureaucracy involved. Read on to learn more about private money loans in Texas and what you need to know
Texas private money loans provide forms of financing that are designed nearly exclusively for real estate investment purposes. These products are somewhat similar to traditional bank and credit union construction or bridge loans but differ in the fact that there is no long-term obligation. In the former, Banks and credit unions offer construction or bridge loans, also referred to as rehab loans, for people who purchase a residential property as their primary asset and refurbish it in order to limit it. However, the latter, or private money loans, are intended for investors who will acquire a residential real estate asset, remodel it, and then sell it.
Because of their very structure, private money loans come with short repayment schedules, which can range up to a year or two. Additionally, since there’s no large chain Bank involved, there’s no red tape or lengthy application and approval process. What’s more, funds are made available very quickly and there is usually some level of customization offered to the borrower in order to better fit their needs. This is why private money loans are so ideal for short-term real estate investments.