What’s the Difference Between Houston Real Estate Lenders for Real Estate Investors?
Many times conventional lending is not the best option for real estate investors. Maybe the property doesn’t qualify, maybe the borrower’s income or credit is un-conventional, maybe the transaction has to happen in days…not months or they’ll lose the property, or maybe they want to hold on to more of their cash for additional investing. There are many times when a conventional real estate lender is not the optimal choice. So what are the options?
Hard Money – Hard Money loans are called that because they are based on “hard” assets (real estate), more than the qualifications of the borrower such as credit or ability to pay. Hard money loans are easy to find and relatively fast and easy to obtain. Hard money loans have higher interest rates and origination fees than conventional loans. This kind of lender typically considers foreclosure and resale of the properties part of their business.
Private Money – Private Money loans are just that…private. Often the lenders are a family or friends, maybe a business associate or referral. Private Money is often cheaper and more flexible than Hard Money, but not always. That said, Private Money Lenders have limitations and are much harder to find.
Zeus Hard Money – is the best of both worlds. Out Real Estate lending is based on a percentage of the After Repair Value (ARV), your repair budget is actually included in the loan. So far so good, but Zeus Hard Money also takes into consideration the qualification of the borrower in order to be able to offer the best possible terms. Zeus Hard Money is flexible and always offers choices. And fast! No real estate lender can close faster. In as little as 4 days!