Monday, July 4, 2011

Texas Hard Money For Land

Hard /Private money is available for land. Texas land , both ranch type land and land to be developed are property types that we like and can be funded up to 60% of value.

A good aerial map or google earth map is best (know your site)
history : when purchased, for much
facts: zoning, utilities, flood area......,mineral estate...

use of land : if to be developed, what is best use?

more can be found:

Tuesday, April 1, 2008

Addressing Joint Venture and equity

In general , 100% financing deals dont work. On the rare deal that does make sense, it becomes a partnership. The lender will always take the approach of " why do a need a partner to finance 100%, i'll just buy the deal". Now it doesnt really happen like that, but thats why its better to partner with clients who already own the property or can put at least 10% into any deal.

equity partners on average will put 10-20% of the required capital in a real estate deal.

100% financing may work with a land owner who has enough equity that a 100% loan to cost on some sort of a development makes sense

Wednesday, March 12, 2008

Rehab to rental vs straight purchase

investors should consider using a rehab loan to acquire rental property. consider 95 - 100% loan to cost vs 80 - 90% on conventional loans.

after the rehab, simple refinance at 70 - 75% LTV. (you get better terms and may be able to get back your original 5% down payment)

Why: you can do deal after deal vs using your capital up on 1 or 2 deals.

Tuesday, March 11, 2008

Hard money for Texas Land

Texas real estate is holding steady compared to most of the US. We like commercial land deals in and around our major metro areas and in path of growth. if you are refinancing , understanding when you purchased and for how much is the first step in evaluating risk and value. Some areas land has depreciated. Also, private lenders would prefer the sponsor keep some equity /cash in the deal.

If you want someone to look at your land, please provide short and concise loan request, detailed location map and explanation of zoning and entitlements.

Monday, March 10, 2008

High risk borrowers for hard money in Texas

Although Texas is lender friendly in regards to foreclosure and interest rates, be careful of clients who are likely to drag you into a bankruptcy. I ask borrowers to consider and sale and leaseback. That way, if there is a problem you simple own the property and avoid most of the legal proceedings. Just a thought.

Thursday, March 6, 2008

Hard money myths chapter one

In no real order:

i dont have to provide documentation. (while the property is 75% of the underwriting, we dont want to fight bankruptcy, criminals and other things that tie up our money)

I have an appraisal ( do you believe every movie review without some research?)

as long as i pay high interest rate, i can get a loan:

In Texas property is appreciating ( not everywhere)

I dont have to have money , you are loaning on value (why are you buying at a 50% discount, need good explanation)

There will be more. I would like others to talk about misconceptions and myths, it will help us all with transactions we can close.

Wednesday, March 5, 2008

Establishing value

you have an appraisal, good. Its a MAI (made as instructed...). To help us understand value have some recent comps and listings available. Has the property been for sale , how long? Was it under contact? These are some things that should be in the initial loan request under supporting value data.