When it comes to Houston Real Estate trends, the competitive market has seen a rise in the role of private lenders in driving development. Texas, and cities like Houston, have seen an increase in demand for multifamily properties and real estate spaces. These are excellent investment opportunities for commercial real estate investors.

Private Lending Offers Targeted Funding for Houston CRE Projects

Direct loans are known for being fast, flexible funding options for a range of commercial real estate scenarios.

For example, one funding option for a commercial real estate investment is to have the private lender secure the value of the direct loan from the property itself. An experienced real estate private lender in Texas understands the fine points of local real estate investment opportunities and what could be a solid investment for all involved.

If the property/development holds the value necessary to deem worth pursuing, an experienced hard money lender for commercial real estate can help you navigate private lending options and real estate investment financing solutions that best fit your unique project and financial circumstances.

Speed and Flexibility Set Houston Deals Apart

Direct private lenders in Texas such as RoseRock Capital Fund provide access to fast funding in a commercial real estate market that’s all about speed and opportunities that are here today, gone tomorrow.

In addition, private money lenders for real estate in Texas have loan options to better serve your specific requirements, such as loan terms tailored to the needs of your project, flexible interest rates, short-term loan options such as a land bridge loan, and they bring to the transaction a range of experience, knowledge, and local resources when it comes to land purchases and commercial real estate development.

Houston’s desirable commercial real estate market is incredibly competitive and if you don’t have funding ready when the time is right, chances are you’ll miss out on valuable real estate opportunities.

Why Houston Investors Are Moving Away from Traditional Banks

If you work with a traditional financer such as a bank vs. a private lender, your chances of not securing the financing needed to fund a land acquisition or a commercial real estate project are significantly higher.

Banks generally take longer to process funding requests, which can take up crucial time and give the competition a substantial advantage. However, if you choose to work with a private money lender for commercial real estate and secure a hard money loan, you’ll be able to move quickly and secure your commercial real estate investment.

Bridge Loans Keep Houston Projects on Track

Private lenders are driving development in Houston’s real estate sector for many reasons, two of the main reasons being that private money lenders offer loans that are both flexible and accessible. For example, many real estate projects start out on-track, but then stall because of one reason or another, generally having to do with a need for more financing in some capacity. However, every delay in the project costs more money.

Direct lenders offer short-term bridge loans or land bridge loans that can help “bridge” the funding gap and make sure the project doesn’t fall behind or fail because of a lapse in funding. A bridge loan can generally be secured quickly and with flexible terms that fit the project’s needs.

Choosing the Right Houston-Based Lender Matters

The private lending sector is growing, and that can be both a good and negative thing when it comes to accessing secure funding for your commercial real estate project from a reputable, trustworthy, and experienced private lender in Texas.

Before you sign on with a direct private lender, it’s important to do your due diligence when it comes to researching all angles of the company, funding sources, and the people you’ll be working with.

It’s important to look at reviews before choosing a direct lender. Online reviews are easy to access and can often quickly paint a clear picture as to whether you want to work with a particular company—or not. You can also ask around the old-fashioned way and speak directly with other investors in commercial real estate who have worked with that private lender. If possible, check out some of the other projects they’ve funded.

It's also important to meet in person with the people you’ll be working with for the duration of the project to see if you’re a good fit and can work together well. Good communication and transparency when it comes to all details of the loan are also important components of working with a direct lender to fund your commercial real estate project.

Private Lending is Powering Houston's Real Estate Boom

Real estate is a finite commodity and growing locations such as Houston offer excellent commercial real estate investment opportunities… and it is direct private lending that’s helping drive that development by providing fast, flexible, trustworthy funding solutions for commercial real estate projects.