Your Primary Guide to Real Estate Investor Loans By Investor Lending

 

Real estate investor loans Dallas

It’s the showdown of the century, an all-out battle royale, so to speak. The economy is behaving super-favorably towards the real estate market and everyone wants to invest now. With funding options still a bit on the limited side, it’s a battle between the different types of real estate investor loans in Dallas, Texas. On one side we have dependable options such as Mortgages and Home Equity loans, on the other, the more adventurous opponents, Hard Money Loans and Private Loans. So which deserves to fund your next investment, let’s take a look at their pros and cons.

Mortgages

Mortgages are government-regulated long-term real estate-specific loans.

Pros

·         Offer the lowest interest rates on the market.

·         The repayment periods can be as long as 30 or even 40 years.

·         Have reasonable monthly premiums.

Cons

·         Have a long waiting period for approvals due to strict government regulations

·         Involve a lot of background checks.

·         Interest rates are heavily dependent upon your credit score.

·         Require at least 20 to 30 percent down payment.

·         Have fluid rates that can rise with the years.

Best for people looking for long-term or lifetime use of the property like a home or office.

Hard Money Loans

Hard Money Loans are unique among the real estate loans in Dallas, for being short-term bridge loans that use the financed property as collateral.

Pros

·         Have little to no background checks.

·         The interest rates are independent of your credit score.

·         Have fewer government regulations.

·         The approval period is as short as 7 days.

Cons

·         Interest rates can be as high as 25 to 30 percent.

·         Can require a more down payment based on the property’s risk value.

·         Have higher application fees.

·         Higher premiums.

Best for people looking to make a quick profit by flipping a property or renting it out.

Home Equity

 

Home equity loans are acquired by placing already owned property as collateral.

Pros

·         Have lower interest rates.

·         The rates can be flexible and fixed.

·         Require no down payment.

·         Repayment periods are as long as mortgages.

·         Lower monthly premiums.

·         Since you’re equating the value of your property interest rates are less dependent on your credit score.

Cons

·         You’re risking the closure of your property.

·         You can only get about 80 to 85 percent of the equity value.

·         Like mortgages, have long approval periods.

·         Are heavily regulated by the government.

Best for people that want to invest but don’t have the capital for the down payment.

Private Loans

Any financial assistance that is independent of a financial institution that you have to repay and involves a formal contract is called a private loan. Such loans or investments may be acquired from an organization, groups, or individual people.

Pros

·         Private loans are highly negotiable.

·         You can set the premiums to be monthly, yearly, or even lump sum.

·         Have no government regulations.

Cons

·         Can make your next Thanksgiving dinner awkward if you got the loan from a family member.

·         The legalization of the contract can be a lengthy process.

·         You might need to hire a lawyer to check for any legal liabilities.

Best for people that have someone well-off willing to invest in their venture.

Final Words

Different kinds of investments have different kinds of risks. Therefore, always do your due research before venturing into something. But hopefully, by now you’re well equipped to choose the loan among all the real estate investor loans in Dallas.


Location: Dallas, TX, USA

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