The real estate market in Texas is as rich as the region’s history, and the Texas hard money lenders are often easy to negotiate with and willing to make a good deal. Part of what makes this state special are the long-lasting effects of the oil boom that saw the region get so heavily populated during the Industrial Revolution. The amount of natural resources that the region has to offer ensure that it remains an important state for many developers of all kinds.
Working With Texas Hard Money Lenders
For hard money lenders, Texas represents a very rich and highly desirable market, especially for industrial and commercial development. Home rehabilitators, the next most common applicants for hard money loans, are also likely to see good business here, but larger development plans remain the bread and butter of the real estate business in the area.
Thanks to the desirability of the land in this part of the country, it is generally possible to negotiate a good deal with your lender. In many cases, you should expect the following as a minimum:
- 60-65% commercial hard money LTV;
- Purchase money of at least 65% without rehab funds; and up to 65% of the completed value on rehab loans
- Cash out that goes up to 65% of the value.
Thankfully, Texas regulations do not stipulate that these loans must be credit driven. Many of them can be made without making inquiries into the developer’s credit history or score, which facilitates making a mutually beneficial deal happen quickly. Often, a single week is enough time to get a loan through the application process and hard money in-hand, ready to be used either to develop a property or as bridge money for a property-in-progress.
Types Of Properties To Loan On
By far, the Texas real estate market is focused on commercial properties – and, true to the old saying “Everything is bigger in Texas””, you can bet that the bigger the investment is, the better your loan can be structured and negotiated towards your favor. If you want to start developing in this area, Texas hard money lenders can be your greatest allies.