Suppose you’re looking to invest in a San Antonio (SATX) property. You need hard money and have no idea where to begin.
The search should start with Hard Money San Antonio, TX, and this should begin with us! – We are a hard money lender in San Antonio, Texas
We can help with your Texas project!
In that case, this lending guide is for you. Whether San Antonio is a new market for you or you’ve invested here before – we outline what you need to know to get the San Antonio hard money loan you need.
We want to help you turn a profit quickly with your next real estate project.
San Antonio Lender – Investment Property With Private Money
There’s no doubt that the state has the right mix for rapid economic growth and long-term prosperity.
What makes San Antonio that much more remarkable? It is the fact that it continues to thrive during challenging economic times and the COVID-19 pandemic.
San Ant, Texas, has been resilient where other cities have faltered, making it an excellent investment for today and the future.
When Should You Use Private Money Funds?
Low, competitive rates (interest rate) and the ability to close quickly are two reasons to use hard money.
Use it to rehab your investment property, Turn it around and sell it for a profit or put it up for rent.
Your goal as a real estate investor is firstly to purchase the investment asset. Then do what you need to do quickly to get the greatest return on your investment.
This may require the help of money lenders like ourselves – DFW-HardMoney.
Here are the top four investment strategies:
1 – Fixing and Flipping / Fix and Flip:
The real estate strategy of buying a property that needs repair, renovating it, and then selling at a profit has been widespread. There was an unprecedented real estate market in 2020, and now 2021, it is no different.
Limited inventory and high demand have made this strategy profitable for investors. Those that can identify a home at a discount because of its condition, yet find it located in a growing area like SATX, will have the advantage.
Putting in just the right amount of rehab and bringing the house out of disrepair usually involves improving aesthetics and bringing kitchens and bathrooms up to date.
The investor aims to fix the property quickly and return it to the market for a sizable profit (flip it). So now you know where the term fix and flip originate from.
More info here – How to start fixing and flipping? & Flipping houses checklist
2 – Hard Money For Commercial Use:
Commercial properties & commercial real estate include warehouses, medical offices, corporate offices, manufacturing facilities, restaurants, retail strip centers, and more. These properties may be new, from the ground-up construction, renovations, or change of use play for resale or long-term hold.
A Traditional Bank dealing with real estate often has long and tedious processes to approve commercial finance to an investor. Financing this way when real estate investing is not always to the borrower’s advantage when appraising a real estate investment.
All sorts of issues can be raised – bad credit, personal credit score problems, and minimum credit scores, being a few. In this respect, hard money can be a life/project saver. Private funding avoids a lot of these pitfalls.
Previous loan issues are often cited – bad credit, payday, commercial, conventional, bridge, construction, installment, FHA, short-term, or a home-based cash advance.
This is before they look into any mortgage issues and mortgage rates (i.e., mortgage banker & credit union issues).
3 – Private Transactional Funding:
Transactional funding can apply to residential, commercial, farm and ranch, or other facets of a real estate asset. One of the roles of transactional financing is to allow the buyer to quick-turn the property to another buyer.
In this case, we provide funds for the buyers closing while waiting for their buyer’s funds to come through. This is when private money is at its most beneficial.
4 – Land Development:
Land development projects refer to altering the landscape for a commercial or residential property asset.
For example, a residential lot development to sell to builders or a commercial development used for a specific or mixed-use. It can be challenging to find financing for land development, and they require a great deal of detailed knowledge and, in turn, cost.
Seeking out the best lenders would be a good start! Are you wondering how much you will need and what are the overall costs involved?
What Does The Hard Money Loan Process Look Like?
Getting ‘cash’ quickly from a private lender is the number one way investors succeed.
The challenge is that it is not always easy to do.
This is because many lenders are not transparent and have hidden fees.
You want to find an established lender with an easy process. You also want someone experienced in providing real estate investors with what they need – funds to purchase or renovate non-owner-occupied residential or commercial real estate properties.
They will also offer you advice and help you navigate the unique challenges that can arise. In the end, your deal will go much more smoothly and stress-free.
Our team makes the process easy with free applications, same-day approval, and 24-hour closings.
You must complete a simple application with your financial information to get started. It should take you no more than five to 10 minutes to complete.
The approval process can take as little as one day when all required documents are completed. So you can react to a great investment property quickly and not lose an excellent opportunity.
What Sheet Lending Terms and Fees Should You Expect?
Finding the best rate is critical, but that’s not always easy, as a lender may try to hide fees.
At first glance, the ‘best rate’ is not always the best rate when all things are considered.
That’s why we suggest investors do their due diligence and select competitive rates from a transparent lender—one with experience and a proven record – Check out our Google Reviews
Our requirements are unambiguous and can be found on our terms page.
They include an $850 fee for closing costs. Only non-owner occupants (individuals and corporations allowed). A personal guarantee, and for the lender to be in the first position.
Loan Terms – What To Expect:
Many terms are essential to know, including after-repair value, or ARV, of a piece of real estate when deciding whether a deal is worth pursuing.
The ARV estimates the property’s worth after all the needed repairs, renovations, and upgrades.
For an explanation of all sheet lending terms, including ARV, loan amount, purchase price, loan to value (LTV), and more, check out our 3-minute Explaining a Term Sheet video.
It will walk you through everything you need to know and understand as an investor in the real estate market.
Real Estate Finance and Closing Time:
Because closing quickly is vital so you can start your San Antonio investment with its next phase. The right decision is crucial.
You want to ensure the hard lender you are working with has testimonials from previous clients that show they are easy to work with and can be trusted. Picking the right San Antonio real estate partner is paramount to your success.
They should also have proven examples of where they have closed in as little as 24 hours; or as soon as the property title is clear.
We Provide Projects Quick Cash Across San Antonio TX
With over 20 years of real estate experience, DFW has helped many investors succeed with their real estate projects – small and large.
We’re a private lender serving real estate investors who are flipping houses and need funds for commercial property investments, transactional funding, developments, fix and flip, and more.
Looking for private funding in San Antonio, Texas:
We are a trusted direct lender who is here to help!
As the direct lender, we lend using a simple 5-Step Process.
We operate in the following areas:
DFW, Denver and Colorado, Birmingham and Alabama, Tampa and Florida, Atlanta and Georgia. Kansas and Missouri, OKC and Oklahoma, Charlotte NC, Raleigh NC, Nashville and Tennessee, Salt Lake City and Utah and Texas (Dallas, Fort Worth, Houston, Austin, San Antonio
1-4 Fix and Flip | Commercial | Multi-Family | Land Development | Vertical Construction | Transactional Funding | Purchase Price Only
To learn more about us, call (817) 200-7575, or complete a no-obligation application today.
We’re happy to supply you with references and testimonials from the many real estate investors we’ve helped over the years.
Further Information & Questions:
What actually is Hard Money?
It is a type of financing secured by real estate. It is called “hard” money because it is typically backed by a hard asset, such as a house or a commercial property, rather than the borrower’s creditworthiness or income.
Real estate investors often use hard money to finance the purchase and renovation of properties. They can be a valuable source of funding for investors looking to flip houses or those needing help to secure traditional financing due to credit or income issues.
One of the main advantages is that it can be obtained quickly, often in as little as a few days. They also tend to have higher interest rates and shorter terms than traditional mortgages, which means they can be more expensive in the long run. However, they can be a good option for investors who must act quickly to take advantage of a good investment opportunity.
It’s essential to remember that this finance is generally riskier than traditional financing, both for the borrower and the lender. Borrowers may be required to put up a significant amount of their own money as collateral, and lenders may face the risk of default if the borrower cannot repay the borrowed sum.
As a result, it’s crucial for both parties to carefully consider the terms and risks of a hard money loan before agreeing.
How do you actually calculate Hard Money loan payments?
We have a very in-depth article on this subject on our blog – HERE but below is a quick overview:
To calculate the monthly payment, you will need to know the following information:
The loan amount is the amount of money you borrow from the lender.
The interest rate is the percentage of the amount you will be charged as interest.
This type of private finance often has higher interest rates than traditional finance, so be sure to factor this into your calculations.
The term is the time you have to repay the money, typically in months.
To calculate the monthly payment, you can use the following formula:
Monthly payment = (loan amount * interest rate) / (1 – (1 + interest rate)^(-loan term))
For example, if you are borrowing $100,000 at an interest rate of 10% for a loan term of 36 months, your monthly payment would be:
Monthly payment = ($100,000 * 0.10) / (1 – (1 + 0.10)^(-36)) = $10,000 / (1 – 0.46) = $10,000 / 0.54 = $18,518.52
Remember that this is just a rough estimate of your monthly payments and does not include any additional fees or charges that may be added.
It’s always a good idea to carefully review the terms of your agreement before signing on the dotted line.
Do you cover other areas across Texas?
Yes, we do; from north to south – Austin, Dallas, Houston, and Fort Worth are all included in our private loan business service.