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.

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Hard Money San Antonio TX: Loans From Private Lenders SATX

July 20, 2021

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 t