How Hard Money Financing Can Help You Achieve Your Real Estate Goals in Austin, Texas

28 Mar 2022

Finding the Best Hard Money Lenders in Austin Texas

 

If you’re looking for the next place to invest your money in real estate, the beautiful and booming city of Austin, Texas is definitely worth considering. Even in the face of the COVID-19 pandemic, Austin is thriving. There are plenty of exciting opportunities for astute real estate investors and many Austin hard money lenders ready to help you kick your investment property goals, whether you’re looking to invest in vacant land, residential or commercial property. Even if you have no experience investing in real estate or have a less-than-perfect credit history, real estate hard money can help you take advantage of the many opportunities Austin has on offer from private hard money investors.

 

Why Invest in Austin

The state capital of Texas is enticing new residents in huge daily numbers and it’s easy to see why. A stunning city known for its great weather and attractions to suit all lifestyles, it is also home to a growing number of big-name companies. Austin is home to Apple’s $1 billion campus and Tesla has recently relocated to Austin with Elon Musk himself is predicting Austin will be the “biggest boomtown that America has seen in fifty years”. Samsung, which already has premises in Austin, is also slated to build an enormous plant that could generate 1,800 new jobs.

With money constantly flowing into the diversifying Austin economy, Austin also boasts low unemployment rates and an increasing population. This means more residents needing homes to buy or rent, and companies needing office, retail or commercial spaces. For hard money investors, this means numerous opportunities. And with a rising median house price and decreasing time properties are listed on the rental market, there’s never been a better time to make a move on Austin.

 

Where to Invest in Austin

When it comes to locations with viable investment opportunities, Austin has so much to offer. There’s much more to Austin than just the Downtown area. There are a range of lucrative markets to invest in Austin, including many that are growing in popularity such as the Northwest, East Austin, West Austin, and the Lake area.

Some hot-ticket suburbs in and around Austin include:

• Millwood
• Taylor
• North Cape
• Cedar Park
• Austin Colony
• Liberty Hill
• Buda
• Bastrop
• Pflugerville
• Georgetown
• Manor
• Hutto
• Leander

 

How Hard Money Can Help You Build Your Austin Portfolio

If you’re convinced that Austin is where you should be investing in property, a hard money real estate loan could be what gets your deal over the line. You’ll find a number of top hard money lenders in Texas, like Alpha Funding, that know the Austin market inside out and can help you optimize your Austin investment.

Private lenders for real estate like us can offer significant loans ranging from $2 million to over $100,000. Private money real estate loans include a wide range of loans such as equity commercial bridge loans, purchase loans, refinance loans, distressed property purchases, non-recourse loans, renovation loans, condo financing, short-term bridge financing, commercial mortgage bridge loans in Texas, bridging loans for property development, hotel construction loans, resort financing, hotel financing and bridge apartment loans. You can use them to purchase, refinance or renovate endless property types such as:

• Residential investment properties
• Vacation homes
• Condominiums
• Multifamily
• Mixed-use properties
• Retail premises
• Office buildings
• Single-tenant properties
• Seniors housing and assisted living properties
• Car dealerships and automotive premises
• Self-storage facilities
• Gas stations
• Industrial properties
• Marinas
• Rental portfolios

Another option for private hard money investors in Austin is the purchase of vacant land. Buying land without any existing structures gives you endless opportunities for adding value, and in Austin, there is plenty of vacant land on offer. Private commercial money loans are available for purchases of land in Austin, including for large land purchases from $2,000,000 to over $25 million. You can use commercial bridge financing to purchase land ranging from a few hundred square feet right up to huge acreage purchases, including:

• Commercial land
• Agricultural land
• Residential land
• Industrial land
• Raw land

Hard money land loans are generally short-term loans between 12 and 36 months, giving you the opportunity to make your improvements before reselling or refinancing.

 

Why Choose a Hard Money Bridge Loan Over a Traditional Loan?

Asset-based finance is ideal for fix and flip investors, buy-and-hold investors, and investors with short-term projects in mind. Commercial real estate hard money financing and bridge loan financing are appealing options for many real estate investors because they:

• Are short-term. Generally,a private commercial money loan term will be between 12 or 60 months, which will give you enough time to purchase a property, renovate or, in the case of empty land purchases, construct from the ground up, then refinance, rent out or sell.
• Are flexible. The terms of a hard money commercial mortgage, including the repayment terms, can easily be adapted to suit your needs. Most hard money lenders for commercial real estate are happy to tailor a loan, ensuring it ticks all your boxes.
• Require minimal documentation. Unlike banks who require what feels like endless documentation in order to approve a loan, a hard money real estate loan only requires a few key pieces of documentation such as an appraisal, recent profit and loss statements, a personal financial statement and other documentation where relevant such as a rent roll, purchase sales agreement or settlement statement, operating agreement and list of improvements made or required.
• Can close extremely quickly. If you need to move quickly on a deal in Austin, a hard money loan can close in as quickly as two to three weeks.
• Can cover up to 100% of renovation costs. If you intend to renovate an investment property you are either purchasing or refinancing, rehab hard money can cover the entire costs of the renovation or even construction on vacant land.

Eligibility is another reason an investor might choose an asset-based real estate loan over a more traditional loan. For instance, if you’ve got a bad credit history or have never invested in property before, you may get rejected from a traditional financial institution such as a bank. Hard money commercial mortgages have no minimum personal FICO score, which means they open doors for all kinds of investors. In the case of vacant land, banks and government-backed lenders have strict criteria in place and typically won’t finance the purchase of vacant land. Accordingly, many real estate investors looking to purchase land in Austin will seek out a hard money land loan.

Other scenarios where a hard money commercial real estate loan might come in handy for your Austin investment, include:

• If you are a foreign national
• You’ve been turned down by a bank
• You need to close quickly
• The property you are investing in is vacant
• The property you are investing in is in a distressed location
• Chapter 11 exits
• When you are wanting to make balloon payments only

 

If you’re ready to make a move on a property or plot of land in Austin, need bridge financing or want to temporarily refinance your existing portfolio, get in touch with Alpha Funding today. We are a leading commercial hard money lender in Texas with extensive experience in the Austin market. Our friendly team is ready to help with tailored loans designed to optimize your Austin investment.