Pros of Hard Money Loans in Houston
The best part about acquiring hard money loans is that you don’t have to visit conventional banks several times. Normally, banks take at least a month or so to provide funds to an individual. And, when it comes to commercial loans, the duration of approval is not less than 60–90 days. On the contrary, hard money loans Houston is generally funded within a week.
Secondly, banks have traditional underwriting guidelines, so they generally don’t lend on real estate that needs repairs. Nevertheless, a private money lender provides a loan on a property that is either deprived of cash flow or needs improvements.
Lastly, conventional banks depend on a borrower’s credit score, reported earnings, and the potential of the borrower to repay the debt. As a consequence, these banks refuse to offer loans to real estate investors, doctors, lawyers who have good incomes but a lot of debt to pay back. Hard money loans Houston plays a primary role in lending to borrowers depending on the value of the investment versus the debt to revenue of the individual borrower.