Texas has become an increasingly attractive option for real estate investors over the last few years. With its growing economy and job market, Texas boasts a diverse population and low cost of living. In addition, the state has experienced strong population growth throughout 2021, resulting in increased demand for housing and rental properties. This has created favorable conditions for both long-term asset appreciation as well as short-term cash flow opportunities from rental properties. 

Real estate investing trends in Texas have been highly positive in 2021. Factors such as high ROI numbers on residential property investments combined with low mortgage rates have enabled even higher returns than expected in certain areas of the state. This trend is projected to continue into 2022 and 2023, making Texas a promising prospect for real estate investors looking to grow their portfolios in a robust market climate.

The 5 Cities in Texas with the greatest potential for rental properties 

1. Houston: With a strong job market and booming tech industry, Houston provides an excellent opportunity for investors looking to capitalize on rental income.
2. San Antonio: An up-and-coming city that offers favorable conditions for real estate investments due to its diverse population and low cost of living.
3. Austin: Home to several universities and tech companies, Austin is an attractive option for investors looking to tap into the area’s robust job market potential.
4. Dallas: Boasting a large population and no shortage of entertainment options, Dallas is an ideal location for those seeking high rental income from their properties.
5. Round Rock: With its convenient location between Austin and Dallas, Round Rock offers investors favorable opportunities in close proximity to both cities’ amenities.

Why HMM as your hard money lenders Texas?

This is where we separate ourselves from other lenders, we under promise and overdeliver time after time! You speak with a decision-maker on all phone calls and by email (you can even text us too!) not some account executive that is just reading off their product matrix and hoping to fit your loan in their box.

From  Houston to Dallas to San Antonio to Austin, Hardmoneyman.com LLC has helped real estate investors from new to experienced achieve their investment goals. Regardless of your location in Texas, Hardmoneyman.com LLC is there to help you achieve your funding needs.

Our quick and efficient process from intake to underwriting to closing, and then draws done in-house with our construction team, make us the market-leading hard money lenders Texas.

Submit your application today online or call us at 866-461-2695 and get approved for your next deal.

What are the typical LTV ratios for hard money loans?

 Hard money loans often have varying loan-to-value (LTV) ratios, depending on the lender, property type, and specific circumstances. Here are some general guidelines:

1. Residential Properties:

   • For residential properties (such as single-family homes or condos), LTV ratios typically range from 60% to 80%.
   • A lower LTV requires borrowers to bring more personal funds to the table.

2. Commercial Properties:

   • LTV ratios for commercial properties (office buildings, retail spaces, etc.) can be 50% to 70%.
   • Commercial properties often have higher risk factors, leading to lower LTVs.

3. Fix-and-Flip Loans:

   • If you’re flipping a property, hard money lenders may offer an LTV of 70% to 90% of the purchase price plus renovation costs.
   • The property’s after-repair value (ARV) plays a significant role in determining the LTV.

4. Bridge Loans:

   • Bridge loans (used for short-term financing between property transactions) may have LTVs around 70% to 80%.
   • These loans bridge the gap until permanent financing is secured.

5. Land Loans:

   • LTV ratios for land loans (raw land or development sites) are typically lower, ranging from 40% to 60%.
   • Land is considered riskier due to lack of income-producing structures.

6. Higher LTVs with Experience:

   • Experienced real estate investors with a successful track record may negotiate higher LTVs.
   • New investors or riskier projects may face stricter LTV limits.

Remember that each lender has its own policies, and it’s essential to discuss LTV ratios upfront when considering a hard money loan.

How can I calculate the LTV for my specific property?

Calculating the Loan-to-Value (LTV) ratio for your specific property involves a straightforward formula. Here’s how you can do it:

1. Gather Information:

   • Obtain the appraised value of your property. This value represents the estimated market worth of the property.

2. Determine the Loan Amount:

   • If you’re applying for a hard money loan, find out the loan amount you’re eligible for or planning to borrow.

3. Apply the Formula:

   • The LTV ratio is calculated as: [ \text{LTV} = \frac{\text{Loan Amount}}{\text{Appraised Value}} ]

4. Example:

   • Let’s say your property has an appraised value of $300,000.
   • You’re seeking a hard money loan of $200,000.
   • Calculate the LTV: [ \text{LTV} = \frac{200,000}{300,000} = 0.67 ]

5. Convert to Percentage:

   • To express the LTV as a percentage, multiply the result by 100: [ \text{LTV} = 0.67 \times 100 = 67% ]

6. Interpretation:

   • In this example, the LTV ratio is 67%. This means the loan amount is 67% of the property’s appraised value.

Remember that LTV ratios vary based on the lender’s policies and the type of property. Always consult with your lender to confirm the specific LTV for your situation.