Hard money lending!
This particular type of loan has become one of the favorites of many real estate investors.
There are several reasons behind that. Along with having a faster processing time, hand money lenders also provide much flexibility when it comes to meeting certain criteria.
The best part is that you don’t have to show reliable credit history, a clean financial history, a stable income, or the source of your down payment.
Yes, you read that right; hard money lenders do not care about all these things. They also do not care about whether you have a bankruptcy history or not. All they prioritize is the property you are buying for which you are taking the loan.
They determine whether the property you are buying has the potential to bring enough profit so that you can pay off the loan.
There is also asset-based hard money lending, where the lender uses your collateral. Of course, your collateral will be any of the real estate entities. Here, in this article, we will talk about asset-based hard money lending.
What Is Asset-Based Hard Money Lending?
When it comes to asset-based lending, hard money lenders typically use your collateral in the form of real estate in order to assist you in acquiring additional cash for funding further real estate projects.
In case your money is tied up in real estate, it is obviously not liquid. And when you are growing your real estate business, it is obvious that you will require more cash for growing your business.
How Asset-Based Lending Works
To be honest and practical, hard money lenders can offer you cash really quickly in comparison to other conventional financial institutions. It is because hard money lending needs less paperwork and also offers more flexibility at the same time.
In addition to the equity in your current real estate assets, the hard money lenders will only look at the equipment, accounts receivable, and inventory in order to determine your loan.
It is because the real estate itself is not at all liquid, and in addition to that, you are not borrowing the money on your personal income. Here, we will also like to let you know that hard money lenders usually charge higher interest rates in comparison to traditional banks.
You might have understood why.
Advantages Of Asset-based Hard Money Lending
When you are thinking about growing your real estate business, asset-based hard money loans can come with several benefits. They are as follows.
- These types of loans are much faster than all those conventional loans from traditional financial institutions, along with less paperwork and documentation. Plus, these types of loans usually have fewer underwritten guidelines, which are also flexible.
- You can use the loan money as per your needs, and it is not at all restricted to any specific purpose, like purchasing equipment or anything like that.
- The asset-based hard money lending also can bridge the gap between expenditures and incoming cash receipts for your real estate business.
Asset Based Hard Money Lending In Austin, Texas
When you are looking for asset-based hard money lenders in Texas, here is a suggestion for you; HouseMax Funding. We are recommending Housemax funding for several reasons.
One of them is that your loan will get approved online. After that, you just need to submit your documents and complete the process. Within a minimum timeline, you will get your funding really fast.
They have more than 2,000 funded deals in their portfolio. Apart from Housemax Funding, here are some more options for asset-based hard money lenders in Austin, Texas.
- RCA Capital.
- ABL Outsourcing.
- Val-Chris Investments.
- Stormfield Capital.
FAQs (Frequently Asked Questions)
We believe now you have understood at least the basics about asset-based hard money lending in Austin, Texas. Still, if you have any doubts or queries, you can reach us anytime. We will try to come up with a reliable solution as soon as possible.
Till then, the following questions might help you.
Q1: Why To Opt For Asset-Based Hard Money Lending In Texas?
Texas is a great place for real estate business, and when you are planning to do so, you should opt for asset-based hard money lending for the following reasons.
- Faster processing.
- Less documentation and paperwork.
- No credit history is required.
Q2: What Are The Best Asset Based Hard Money Lenders?
We have already provided you with the names of the best asset-based hard money lenders in Austin, Texas.