The economy’s taken its toll on many folks in the market, and many Texas hard money lenders are reaching out to those folks that need a little assistance in making their monthly, even daily budgets work out. A hard money loan, at its most general and fundamental, is a loan for capital that is collateralized by some piece of real estate.

Now, as with any financial instrument, the terms and details of such an arrangement will vary from lender to lender, but more or less, that is what constitutes the hard loan. This sort of arrangement varies, and isn’t like the sort of loan that you get at a big bank. See, a big bank doesn’t see the value in offering, for example, more short term loans, because it just doesn’t have the sort of meaty profit margin that a big mortgage has. Though you can whip up a customized deal like this at a traditional big box bank, you’d be hard pressed to find a banker that will go out of her way to do this for you in this sort of economy.

Texas hard money lenders do a lot of social good, in this sense. Hard money lenders in Texas help folks that they understand won’t necessarily be tied into their system for good. Unlike credit companies that really work to try to get a consumer “hooked” on a financial product, these small independent financial shops really work toward getting a good deal done for a customer, and then being more than content with that alone—no pitching of other offers, such as a CD, a refinancing deal on your house, or anything like that.

Texas hard money lenders and Texas hard money have been around since the Great Depression. It was in those years that they seemed to have done a good deal of work in the economy to keep folks from completely losing their shirts. Times were tough then; and though what we’re going through today isn’t as bad, there are many similarities. Back then, there were bank runs, that was before the FDIC was established. Today, there would be bank runs if the FDIC wasn’t there to say, “Hey guys, you don’t have to withdraw all your cash; Uncle Sam’s here to give you cash if your bank can’t.” Back then as well, when household budgets fell short, folks needed a short term loan hard money, and good luck getting one from a big box bank back then.