Posted over 5 years ago

How Texas Private Money Lenders Change the Way You Borrow

If you are denied funding by a traditional, public lender, you may find success reaching out to an alternative, private lender. Private lenders tend to have more flexibility and may be able to lend you a solution to help your real estate dreams come true.

Wren wanted to fix and flip a nearby property, and went to his local bank to see if he would qualify for a loan. He was new to the real estate business, and wanted to renovate a nearby property away from the city.

When Wren went to his local bank, he was disappointed. He didn’t realize how low his credit score seemed to the bank, who didn’t take his renovation proposal seriously. Additionally, they highly considered his debt to income ratio, which was low considering Wren was an emerging writer who hadn’t yet blossomed. Wren was ready to just give up his dreams and live in the woods when he realized he could seek out alternative lenders who would consider his financial history, but would regard his property’s potential more highly.

Reasons to Consider Private Lenders

The needs of Wren’s property were pretty simple and solid, despite being rejected by the bank. Still, he revised his plans and made adjustments that would elevate his plans, timeline, and future goals. He soon met with Dave, a Texas private money lender who offered hard money. Dave supported his plans for renovating the cabin near the woods, and even offered a few suggestions.

After working with Dave, Wren realized the major difference between private and public lenders was the focus on the potential of the property. Texas private money lenders heavily weigh in the property’s risk when making a decision, while public money lenders heavily weigh in the borrower’s risk. Because Dave supported Wren’s plans and believed him to be a reliable candidate, he approved Wren for a loan.

Moving Forward with Private Lenders

Wren was able to begin work on his property immediately. Fortunately, he didn’t encounter any major problems in his fixer upper, but he was glad he had prepared for it in his plans anyway. The interest associated with Texas private money lenders are really high, and the smooth sailing made the costs a little easier on him. Despite the high costs, Wren was happy.

As he reflected on himself and life away from the city in his new cabin, he meditated on a few things: finding a reliable private lender is going to be as important as being able to rely on yourself in life. His ability to produce solid plans, research and find a property to invest in with value was what made him able to renovate.

Though some lenders are unreliable, he was able to rely on himself to do the research and make a decision that was best for him and his future real estate goals. He began to write an essay titled “Self-Reliance” in his renovated property. He sold his home, paid his lender, and lived happily in his renovated property—that is, when he wasn’t camping in the forest.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
[email protected]
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.