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Parent Category: Texas

Texas Hard Money Loans, Investor Loans, Private Money Mortgage and Bridge Loans, which are similar to hard money commercial loans.

Difference between Private and hard Money lenders

Often people use these terms interchangeably. However, there is a difference between the two terms. The source of funding or hard money is obtained through different sources. If you opt for private money lenders, you have a direct access to an investor who is investing his capital to fund your deal. In this case it is your close friend, relative or someone whom you can rely on.

Hard money lending involves a deal between the private investor and a person who wants to fund in his capital in a real estate investment. These people want to fund their capital because they do not have direct access to a private investor and this is the reason on this conduit.

 Texas Hard Money Loans, Investor Loans, Private Money Mortgage and Bridge Loans, which are similar to hard money commercial loans.  

 

These investor loans typically refer to loans for Texas commercial or investment property which is in transition, and therefore do not qualify for traditional financing, whereas hard money loans are more like bad credit loans for financially distressed borrowers.  

 

The qualifying criteria for a bridge loan is essentially the same as a hard money loan, however.  Typically the maximum loan amount one can expect to receive is 65-70% of the property's market value.  

 

Because of the higher than average risk of default with these types of commercial real estate loans, the lenders typically charge higher than average interest rates and often require joint venture or sell back requirements from the riskiest borrowers.  

 

These Texas private money mortgage companies may offer hard money loans to buy the property within a given time period, and if it is not bought back or sold within that given time period, the lender can keep the property at an agreed upon price.

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