Houston real estate investors getting started or looking to scale their businesses should consider hard money loans eventually. Sometimes you may find an investment property but don’t have the money to grab it and put your offer ahead of the competition. Bridge loans can provide the immediate funding you need.
Hard money lenders extend these short-term loans to real estate investors for their renovation or development projects. The biggest advantage of these loans is not having to jump through hoops, since these lenders consider more than just your credit. They will determine your loan amount using the after repair value (ARV).
The short repayment term on these loans is the biggest con, since typical loan terms range from three months to three years. It’s important to make sure you can sell the property fast enough to prevent ending up with a negative ROI.
Using the property as collateral and flexible terms are other pros of taking these loans. Lenders tailor the terms depending on the loan amount, and sometimes offer perks like lowering your origination fee and changing your repayment schedule.
Another disadvantage is that these loans may cost you more since lenders leverage their risk by charging higher interest rates, origination, and other fees. Whether you’re flipping houses or considering real estate investing in Houston, learning about the leading bridge loan lenders is vital to make your plan a reality (unless you’re independently wealthy).
Here are the five best hard money lenders to fund your next investment project in Houston.
1. Capital for Real Estate
Capital for Real Estate extends fix and flip, hard money refinancing, buy and hold, private commercial, and bridge loans. Typical loan terms are interests ranging from 8.99%-12%, maximum LTV of 70% on amounts up to $5,000,000, and terms of 6 months-3 years. They allow their clients to apply online for most of their loans.
2. Noble Mortgage & Investments
Based in Houston, this lender also serves the areas of Dallas, San Antonio, Austin, and Fort Worth. Noble Mortgage & Investments offers refinance, conventional, house flipping, and commercial hard money loans. They extend loans from $50,000-$1,500,000 with a 70% maximum LTV at rates from 11%-14% for 1-5 years.
3. Jet Lending, LLC
Jet Lending is the most versatile lender in our list by extending buy fix and sell, term to perm, single-close rental, and transactional loans. They offer online applications and pre-qualifications for their loans.Their financing parameters are loans with maximum LTV of 70%, terms of 3 months-3 years, and rates between 9.9%-14.9%.
4. Catalyst Funding, LLC
This lender extends rental property and house flipping loans for single-family homes and multi-family properties. Catalyst Funding offers loans for terms up to 6 months with a 70% maximum LTV at rates from 9.99%-13.99%. You can complete their online application or schedule a free consultation to learn more about your eligibility.
5. Zeus Mortgage Bank
With main offices in Houston, Zeus Mortgage Bank also provides loans throughout San Antonio, Dallas, and Austin. They extend short term bridge, refinancing, private commercial, rental property, and house flipping loans. You may be eligible for loans up to $2,500,000 with a maximum LTV of 75% and interest rates beginning from 8.95%.
Learning about the hard money lenders in Houston is vital to successful real estate investing in this market. However, working with a local real estate agent is the first step to make the right calls. A Houston realtor can help you find an investment property with an impressive ARV to skyrocket your house flipping profits.
An experienced agent like a Clever Partner Agent can provide insight into the best areas to invest in the Houston market and financing options. When you work with a Partner Agent, your agent will schedule on-demand showings for the listings you choose. As a real estate investor, you need support when selling your investments.
Our agents can help you sell your home faster and get the best deal while saving in realtor fees. Partner Agents provide full agency service at a lower commission rate.
Our realtors only charge a $3,000 flat fee or 1% if the property sells for $350,000 or more. When you contact Clever, you’ll connect with a top performing agent in Houston to buy a propertyand get the best guidance with no obligation to sign.