Loan Denied…Why?
As a private lender, we field a number of new inquiries every week from people seeking to borrow money. Unfortunately, not every inquiry results in a new loan. In fact, being diligent with underwriting the property and the borrower may be the most important step in the loan process. We thought it would be helpful to share some of the common reasons that a loan request gets denied.
Estimating Closing Costs
There is no doubt that investing in real estate is capital intensive whether you are an all-cash buyer or borrowing money. As a private lender, we want to ensure that our borrowers are fully aware of the costs involved with closing a loan that are in addition to their down payment and loan costs.
Potential Fees for Hard Money Loans compared to RTX’s typical fee structure
Hard money loans often come with a variety of fees, which can vary significantly between lenders. Here's a breakdown of potential fees and their typical ranges as compared to REAL Texas Capital’s typical fee structure:
july ‘24 Market Update
The recently released July 2024 figures look very similar to last month’s figures overall. Active listings continue to rise and continued new highs of inventory supply.
Getting 100% Financing On Your Investment Property
Real estate investing almost always demands substantial capital. To overcome this hurdle, savvy investors often bring in equity partners that bring money for a share in future profits. One powerful strategy that is often overlooked (and does not require an equity partner), is cross-collateralization.
Property Insurance Overview
Properly protecting your real estate investment can be confusing even for the most seasoned investor. This overview will provide a basic overview of the different coverage options. However, we recommend consulting with a licensed insurance professional to ensure you have the right coverage in place.
Understanding Title
A title commitment is a document issued by a title insurance company before closing on a real estate transaction. It outlines the conditions under which the title insurance policy will be issued. Essentially, it's a promise from the title company to insure the title if certain conditions are met.
June ‘24 Market Update
In summary, looking at the totality of the 4 markets, active listings have steadily increased since December 2023 to new highs each month ending in June…indicating a sluggish market and raising the average days to sell a property to 87 days (almost 3 months)
Private Lender vs Hard Money
Understanding the differences between “Hard Money Lending” versus “Private Lending” can be subtle, yet important. Overall, Private Lenders oftentimes have flexibility that Hard Money Lenders may not have and are more boutique lending experience for the borrowers. We have compiled a quick article illuminating differences, so that you may choose which option may best suit your needs
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To close on a loan for your real estate investment project, private lenders will present a number of documents for your approval. The loan documents presented to you will be determined by your lender as well as the rules of the particular state. Below are the standard documents we require of our borrowers:
The 4 C’s of underwriting
So, how do private lenders decide who gets a loan and who does not? The answer lies in the framework known as the “4C’s of underwriting.” These 4 areas provide the lender with a picture of what they want to know about you and your project.
Flow of funds Example
As a private lender, we experience confusion from some Borrower’s on how much, when, and why private money loaned funds are determined and distributed.
As a result, we felt it may be helpful to go through the steps of a “standard” fix and flip loan and how funds are disbursed, and related priorities.
7 Steps to Loan Approval
Let’s take a look at the 7 KEY steps to guaranteed success in your loan approval process.
Private Lender vs Bank Lender
Differences Between a Private Money Lender and a Bank for Fix-and-Flip Projects
Fix-and-flip projects involve buying a property, renovating it, and then selling it for a profit. Choosing the right financing is crucial for success. Here's a breakdown of the key differences between using a private money lender and a traditional bank loan for your fix-and-flip project
Fix & Flipper traits
What it takes, and key characteristics, to get started and be a successful fix & flipper.
Fix & Flip Due Diligence
As a private lender who sees a variety of fix and flip projects, we thought it prudent to emphasize one of the easiest, but most important, items to not underestimate the importance of: upfront due diligence on a fix & flip project
Fix & Flip Success Reminders
As your Private Lender, REAL Texas Capital wants our Borrowers to succeed!!A few helpful reminders to Slash Your Fix-and-Flip Expenses & Strategies to Maximize Profits.
Who we serve
At REAL Texas Capital, we serve two groups: (1) our borrower partners and (2) our capital partners.
Behind the Curtains…
Being childhood friends from Spring, Texas, Ricky & Rusty have combined their talents, experience, character, and backgrounds to focus on providing unparalleled service and ethics in the private lending space.