How To Get Investment Property Financing In Texas

Investing in Texas real estate takes capital.

Many first-time real estate investors begin their journey by using their own personal savings or funds to purchase their initial properties. This approach can be a great way to get started, especially when buying one or two homes outright with cash—often referred to as buying ‘free and clear.’ However, this method has its limits. Before long, most investors find themselves running low on available capital.

At that point, they’re faced with a decision: either put a pause on acquiring more properties or learn how to continue building their portfolio using other people’s money—through financing, partnerships, or creative funding strategies.

The good news is, there are multiple ways to secure financing for real estate investments beyond your own wallet. In this blog post, we’ll walk you through several proven methods that successful investors use to fund their deals, grow their portfolio, and scale their real estate business without being limited by personal cash reserves

How to get investment property financing in Lubbock Texas…

In Lubbock, there are multiple ways to secure funding for an investment property. Here are some of the options available to you:

1. Traditional Banks and Lending Institutions

One common way to fund your next investment property is by taking out a loan from a bank or lending institution. If you have a solid credit history and enough saved for a down payment, this approach can help you grow your portfolio—sometimes allowing you to purchase multiple properties.

To qualify, you’ll need a strong credit score. That means paying your bills on time and keeping your balances low to show responsible credit usage. As your credit improves, lenders will be more open to working with you, making it easier to continue building your investments.

However, keep in mind that lenders have limits. As your number of properties increases, your debt-to-income ratio might eventually get too high for traditional banks. When that happens, you’ll need to explore alternative financing methods to keep expanding your real estate portfolio.

2. Self-Financing

A smart strategy for growing your real estate portfolio is to leverage the equity you’ve built in your current properties to fund future deals.

For instance, if you own a few properties with available equity, you could refinance them or take out a home equity line of credit (HELOC) to access that capital. You can then use those funds to purchase additional investment properties—this is a classic example of using leverage to accelerate growth.

Naturally, it’s important to ensure that the income from your new properties covers the cost of the borrowed funds. But many investors have successfully scaled their portfolios using this self-financing method and their own credit.

3. Private Lending

Another effective way to fund your real estate investment in Lubbock is by working with a private lender.

Private lending involves borrowing money from another investor rather than a traditional bank. While you still repay the loan with interest, private lenders often focus more on the deal itself than your credit score. Their decision to lend—and at what rate—is typically based on the property’s potential and the strength of the investment.

This financing method creates a true win-win scenario: you gain access to capital to close deals, while the private lender earns a return on their money without having to manage a property or handle the work involved in investing.

If you’re a private lender looking to invest passively in real estate, contact us at 806-630-0875. We can connect you with experienced investors seeking funding for strong, vetted opportunities.

4. Seller Financing

Seller financing is another powerful strategy for funding real estate investments—though recent federal regulations have made it a bit more complex, it’s still a viable option.

In a seller-financed deal, the seller acts as the lender. Instead of receiving the full purchase price upfront, they allow you to make payments over time, much like a traditional mortgage.

Many new investors are surprised to learn this approach even exists. But sellers often appreciate it because it provides steady cash flow without the responsibilities of managing a property. Plus, their risk is reduced—if the buyer defaults, ownership of the property typically reverts back to the seller. It’s a classic win-win.

How will you finance your next Lubbock real estate investment?

With so many financing options available, how will you fund your next real estate investment? Explore these four powerful strategies—and feel free to combine them to find the best fit for your goals.

If you’re ready to start investing but need access to deals or funding, click the link below and complete the short form. We’d love to help you grow your real estate portfolio!