• Have you been trying to settle on a new home but were declined by your bank? 
• Have you planned the construction of your new home, yet your bank does not accommodate construction loans? 
• Have you been planning a renovation to get a better price for your property but was declined? 

You may have experienced the said scenarios in pursuing your deals. Low credit scores, high debt-to-income ratios, insufficient income, or unverifiable income halts our desires for real estate ownership, whether this is for our family or for our dream of owning a real estate business. Mortgage rates from traditional lenders remain high, construction loans are not preferred, and real estate prices remain relatively high. 

Alternative Lenders for Real Estate

Building a real estate rental portfolio or financing your fixer-uppers need not limit you to traditional lenders. There are other alternative ways of funding your real estate business. Whether you want to go into rentals or in fix-and-flipping houses, alternative financing options are your ticket. Your choices include private money loans or hard money loans. While small Private Money Lenders may give you immediate access, Hard Money Lenders professionalizes the lending practice outside traditional banks. Now, if you do not want to ask for funds from your close circle, you can apply for a loan from a hard money lender such as GL&L Holdings.

What is a Hard Money Loan?

• It is a real estate mortgage loan provided by Hard Money Lenders. 
• These lenders can finance your real estate deal even if traditional banks have closed their doors on you. 
• Hard Money Lenders focus on the real estate property or asset you mortgage. Thus, they are also called asset-based lenders and will require real estate properties for collateral. They have become popular because they assess the property after repair value based on the repairs you have lined up. They also look into the earning potential of the property. With this outlook, hard money lenders thus give more weight to the asset than the borrower’s financial capacity and records. 
• Hard Money Loans can release loans in as fast as one week, but the average processing time is usually 15 days. 

One advantage of dealing with Hard Money Lenders is that they are mostly locally-based. They do not adhere to strict lending policies commonly associated with big lenders. Thus, they can render decisions faster than traditional banking institutions. They are also well versed in your local real estate market. Another advantage is that most hard money and small Private Money Lenders do not need to report to credit agencies.

Where do I find Hard Money Lenders in Houston?

Searching for Hard Money Lenders is not a complex undertaking. Being able to look for the right one is another matter. So how do you find a Hard Money Lender in your area like Houston?

• Ask around and talk to real estate industry players in your city. Realtors or building contractors are candidates. They may recommend a high money lender or two whom you can visit or call.
• Google is your friend. Search for Hard Money Lenders in Houston, for instance. A list of hard money lenders will come up with their contact numbers and offices. You can call them, send an Email, or schedule a visit to their offices.
• You can also visit local real estate forums on the internet and look for hard money lenders. Web Forums are a good source of information for your mortgage queries.

Are all Hard Money Lenders The Same?

Not all Money lenders are the same. They charge different rates and fees. Almost always, however, they evaluate loan applications on a case-to-case basis. Chances are, though, you will want to establish a long-term business relationship with your lender. As you search for a lender partner, you might as well be aware of the following pointers.

• A Hard Money Lender should be licensed and registered to operate as one. 
• Hard Money Lenders take care of their reputation as hard as borrowers do with theirs. Ask the industry players, or read through the forums so you can at least have a shortlist of lenders. 
• Hard Money Lenders do not ask for personal information directly. They require documents to prove your identity and your capabilities.
• If a lender you are talking to does not provide specifics, is vague in their words, or promises things that are too good to be true, you might want to stay away from them. Hard Money Lenders use clear and specific terminology when you talk with them. They want you to understand their process. They encourage you to ask questions.
• Licensed and registered hard money lenders disclose their addresses on their websites. Having an office that you can visit reduces anxieties of a scam. You can then observe how they do their business on your visit. 
• The contracts you sign are clear and are not haphazardly done. An employee must be able to explain the details of the loan contract. The employee must also be able to explain the terms and conditions of the loan. And answer any loan-related questions that you have with confidence.
• You should be aware of the rates and fees. While private money lenders may charge rates weekly, and some even deduct interests outright, hard money lenders are not into this practice. Most Hard Money Lenders do not collect fees at the onset. Your loan application has to be approved first. They do not also deduct loan interests at once. Private Money lender rates are not as fixed, though, because they are between individuals, they can be flexible.

Hard Money Lenders, Final Thoughts

A reliable financial partner bolsters your capabilities as you build your real estate business. You will have access to funds for your real estate deals where hard cash alone may not be sufficient. With a financial partner, you can realize your goals sooner than doing it alone. GL&L Holdings is a hard money lender in Houston that helps realize real estate goals. We provide hard money loans tailored to your needs.