I AM LOOKING TO START MY WHOLESALING IN TEXAS AND WANT TO LEARN ABOUT HARD MONEY LENDERS FOR TEXAS THAT DO NOT LOOK AT YOUR CREDIT, JUST THE DEAL. I HAVE LOOKED AT THE LIST HERE ON THE SITE BUT WOULD LIKE TO KNOW FROM YALL OF ONE THAT HAS WORKED FOR YOU. :smile
The hard money lenders examine your exit strategy. If your exit strategy is to own the property then you will need to refinance the property out of hard money so your ability to exit their loan makes it mandatory that they examine your credit score. If your exit strategy is to sell the property they want to make sure that it is likely that you will be able to sell the property at a profit in a short period of time.
It would depend on which city in texas you plan on buying property in using hard money. We do have asset based lenders who go up to 70% and other who are credit based. You exit strategy will factor in also based on if you are flipping or holding property.
Most HMLs will look at your credit as past history is often a good indicator of future performance. Many HMLs took back more properties than intended and they want to ensure that they do not repeat those mistakes. Therefore, being able to refinance out of the loan becomes important if the property does not sell by the maturity date of the loan. That being said strong finances and more money down can overcome bad credit.
Hard money loans are loans of need. If you feel the higher rates and cost of a hard money loan are justified by the investment opportunity it may be worth considering. Look for a loan that has lower upfront points, shorter or no prepayment penalties, and interest only payments.