Commercial Real Estate Loan In Houston
Find the Best Real Estate Investment Loans in Houston, TX
Becoming a real estate investor in Harris County is a great way to earn income. But you will need some money on hand to get started in real estate investing. If you don’t have your own cash funding, you will most likely be looking into real estate investment loans.
When you are searching for a commercial real estate loan for an investment property, you must make an educated choice. You want to select the right loan to yield you a successful real estate investment in Harris County. Texas Funding and Consultingmakes sure their property investor clients in Houston, TX understand all of the loan and lender options available. There are six types of real estate investment loans that could work best for your investment.
- Conventional Mortgage Real Estate Investment Loans
A conventional mortgage is a home buyer’s loan available through or guaranteed by a private lender or Fannie Mae and Freddie Mac. It is not offered or secured by a government entity. Loan qualifications for conventional investment mortgages differ by state, but there are some standard requirements. Real estate investors should expect to pay 20% of the income property’s purchase price as down payment. Credit score and history help determine approval and the loan’s interest rate. Property investors will need to prove they can afford monthly mortgage payments on the income property.
- Commercial Real Estate Investment Loans
Commercial investments require a different type of loan. These loans are for investment properties. Investors need to show a solid business plan and have a good credit score. Lenders evaluate the necessary work needed to improve the investment property in order to calculate potential cash flow. Commercial hard money loans are short-term loans to purchase and renovate an owner-occupied commercial property.
- Private Money Real Estate Investment Loans
Private money lenders are not professionals. They are individuals who have extra money and want a good return on investment for their money. Private money lenders can be within your personal network (family, friends, neighbors, co-workers, etc.) or even other property investors and people you’ve met through your real estate investing career. These loans are ideal for investors who were turned down by banks. A close relationship between the investor and lender and the length of the loan thereby makes it more flexible and negotiable.
- Fix and Flip Real Estate Investment Loans
Fix and flip financing options help real estate investors leverage their money and access more funds than they can by using their own money alone. This loan helps you finance the purchase and renovation of a property, and sell it upon completion of the fixes. It’s actually easier to get approved and obtain a fix and flip loan compared to conventional loans. Keep in mind, a fix and flip loan can be costly. The real estate investor may end up with higher interest rates, quicker time to pay if off and pay more closing costs.
- Hard Money Real Estate Investment Loans
You can get hard money loans from professional individuals or companies that lend money specifically for real estate investing. These loans are faster to secure than conventional loans. Hard money lenders are not concerned with credit score. They simply evaluate the income property value to approve the loan. Hard money loans are ideal for real estate investors who buy inexpensive properties, fix them up, quickly sell for profit and pay off the loan quickly.
- Home Equity Real Estate Investment Loans
A home equity loan is a great option for a long-term income property or flip. These loans allow homeowners to borrow against the equity of their current home to use towards buying a second home or income property. The loan is based on the difference between the homeowner’s equity and the property’s current market value. Home equity loans for investment properties are essentially a second mortgage, but they have higher interest rates than the first mortgage. This loan is designed for the real estate investor who calculates the ideal borrowing amount and has a steady cash flow to pay the loan.
Texas Funding and Consulting Can Help You Make a Smart Real Estate Investment Loans Selection in Houston, TX
Don’t stress about real estate investment loans in Harris County. Texas Funding and Consulting can help you decipher the different types of a commercial real estate loan for investment properties and answer all of your questions.
Call 713-344-1199 or visit https://funding4texas.com to set up a free, no-obligation consultation with a financing professional. Texas Funding and Consulting will help you achieve your investment property goals with a commercial real estate loan Houston.
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