You've found an excellent opportunity to form some money. You've heard about hard money bridge loans but you do not know what to expect? Here are a number of the basics:
The biggest advantage of a Texas hard money bridge loan is that the lenders are always concerned about the worth of the property, not such a lot you personally. In other words; the property is what secures the loan, not your current credit status. It's all about the worth of the property. The lifetime of a bridge loan is approximately one to six-months; although you'll get an extension of up to 2 or more years.
Again, these lenders aren't your average banks. The pliability of this sort of loan is why you'll either get approved (or not) in as little as 2 days. You may be asked by the lender why are you trying to find a tough money loan rather than a standard loan? There are many reasons why someone may think about using Texas hard money loans.
Presumably your response is going to be because you would like the cash now and not three months from now when the window of opportunity has presumably closed, otherwise you may respond that your credit has some blemishes, filed recent bankruptcy, low occupancy levels, etc.
Some of the items your Texas hard money loan lenders want to understand will be: the sort of collateral, the situation and approximate value of the property, the quantity owed and most vital , the exit strategy of the loan or how you will pay the lender back. Most bridge loan firms want your business and can work with you to urge you 60% – 75% financing.
In some cases you'll get 100% financing if you've got additional assets to place into the deal.) In 99.9% of most cases, the hard money lenders are private companies, and you will not typically get 100% of the worth of the property. The low loan to value is in situ to guard the lender just in case of default the loan.