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How to Qualify for Hard Money Loans in Houston

In asset-based lending, hard money loans are primarily given by private investors and companies to borrowers for their projects. Hard money loans in Houston are quick and easy, which is why most people prefer operating in Houston, covering major areas like Downtown Houston, Clear Lake, Spring Branch West, etc. Before you apply for a hard money loan, you must be qualified, and here are some requirements to fulfill to attain that qualification:

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How to Qualify for Hard Money Loans in Houston

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  1. How to Qualify for Hard Money Loans in Houston Slide 1 Investor Lending

  2. Slide 2 In asset-based lending, hard money loans are primarily given by private investors and companies to borrowers for their projects. Hard money loans in Houston are quick and easy, which is why most people prefer operating in Houston, covering major areas like Downtown Houston, Clear Lake, Spring Branch West, etc. Before you apply for a hard money loan, you must be qualified, and here are some requirements to fulfill to attain that qualification:

  3. Slide 3 • Save up a down payment (plus fees). In most cases, hard money lenders require a down payment of 10% to 30% of the purchase price. It depends on the loan-to-value ratio and the after-repair value of the property. It might be possible that you will need to pay for closing costs, appraisal fees, and origination fees.

  4. Slide 4 • Set up a Limited Liability Company (LLC). Hard money lenders feel comfortable lending to business entities instead of individuals for legal and tax reasons. You can set up an LLC to safeguard your personal assets and simplify your accounting.

  5. Find a reputable, local hard money lender. You can search online, ask for referrals, or attend events to come across a hard money lender. You should look for a lender that has experience in your market, offers market-compatible rates, flexible terms, and has a good reputation. Slide 5

  6. Slide 6 • Prepare income proof. Although hard money lenders do not rely on your credit score or income, they still want to see that you can repay the loan. Ready your bank statements, tax returns, pay stubs, or other documents that show your income sources and cash flow.

  7. Formulate your repayment strategy. Hard money loans have short repayment periods, typically between 6 months to 5 years. You should have a clear plan on how you will repay the loan, either by selling, refinancing, or renting the property. Slide 7

  8. Apply! Once you come in contact with a suitable hard money lender, you can apply for the loan. You will need to fill out an application form, provide the required documents, and submit a detailed scope of work for the rehab project. Slide 8

  9. Slide 9 Houston is a perfect city to accomplish your investment objectives. Excluding the swift formality of being eligible, hard money loans are not difficult to obtain.

  10. Slide 15 THANK YOU! CONTACT US AT: Investor Lending tina@4smartmoney.com +1 (713) 337-2000

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