Austin, TX, August 26, 2012 --(PR.com
)-- With lending on spec homes drying up, hard money lenders are one of the few sources of capital to finance these types of assets. Stallion Funding has been providing capital from private investors for spec homes, land, remodels and apartments for over five years. Texas hard money loans are typically available for borrowers with less than perfect credit and in some cases may require very little out of pocket cash.
Company President Vincent Balagia is quote as saying "We are excited to see more building activity in Austin, in particular South Austin."
Hard Money is a term used to describe alternative financing for various real estate projects. For a number of reasons, banks can not or will not finance certain types of real estate. Under these circumstances investors who wish to develop land, remodel homes or commercial projects must turn to individuals to borrow money or special funds that can lend without the restrictions of traditional banks. At times, the borrower’s credit is a stumbling block to obtaining financing and at other times investors are already leveraged through other projects. In any case, there may be a combination of reasons why real estate professions turn to hard money.
Typically hard money is significantly more expensive than what banks charge to reflect the additional risk inherent in creative financing. Investors who agree to fund hard money projects are normally sophisticated investors who understand real estate investing. Other times, hard money may be loaned by a special fund with many investors contributing capital and investing in several properties.
For more information contact David Disraeli at 512.219.5558