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Hard Money of Texas

1031 Exchange Bridge Financing

1031 Exchange Bridge Loans:
Don't Let a Financing Delay Blow Your 45/180-Day Clock

The IRS gives you 45 days to identify a replacement property and 180 days to close — full stop, no extensions. When a conventional lender can't move fast enough to meet that window, a hard money bridge loan lets you close on the replacement property now and refinance into permanent financing once the exchange is complete.

Day 0

Relinquished Property Sells

Proceeds go to a Qualified Intermediary — you never touch the cash

Day 1-45

Identify Replacement Property

We can close a bridge loan in 7-10 days once you're under contract

Day 46-180

Close & Refinance

Exchange completes; refinance the bridge into a DSCR or conventional loan

7-10 days

Typical Close

70-80%

Max LTV

6-12 mo

Bridge Term

No W-2

Income Docs Needed

The most common way a 1031 exchange fails isn't a bad property search — it's financing that can't close inside the clock. Conventional lenders routinely need 30-45+ days for underwriting, appraisal, and closing, which eats most or all of your identification window before you've even closed. Hard money bridge financing exists specifically for this timing gap: we underwrite on the replacement property and your exit plan, not a lengthy income-documentation process, and can typically close in 7-10 business days once you're under contract.

Once the exchange is complete and the property is stabilized, most investors refinance the bridge loan into a long-term DSCR or conventional rental loan at a lower rate — the hard money loan's only job is to get you across the finish line inside the IRS deadline without losing your exchange or paying capital gains tax on the relinquished property sale.

When This Makes Sense

Good Fit for a 1031 Bridge Loan

You're inside the 45-day ID window and a conventional lender can't close in time

Replacement property needs light value-add work before it will qualify for permanent DSCR financing

You're closing on multiple replacement properties and need speed on at least one

Seller requires a fast, non-contingent close and won't wait on a 30-45 day conventional underwrite

You have a clear refinance-out plan once the exchange settles

Watch Out For

Assuming any lender can move fast — confirm actual close timeline in writing before relying on it for your 45-day ID

Underestimating bridge loan cost — points and short-term interest need to pencil into your overall exchange economics

No refinance exit lined up — a bridge loan without a clear takeout plan just delays the problem

Missing Qualified Intermediary coordination — funds must flow correctly or the exchange is disqualified

Racing Your 1031 Exchange Deadline?

Send us the replacement property contract and your exchange timeline. We can typically close in 7-10 business days — before your window closes.

Submit Your 1031 Bridge Request →

1099 & Self-Employed Investor Financing

1099 & No-W2 Investor Financing:
Hard Money That Doesn't Care How You Get Paid

Self-employed investors, 1099 contractors, and business owners get punished by conventional mortgage underwriting — two years of tax returns, debt-to-income ratios that ignore write-offs, and automated underwriting systems that flag anything without a W-2. Hard money financing skips all of it: we lend against the deal, not your pay stub.

No Tax Returns

Required for Approval

No DTI Calc

Asset-Based Underwriting

70-75%

Typical LTV/ARV

7-10 Days

Typical Close

Conventional lenders qualify borrowers on documented, averaged income — usually two years of tax returns run through a debt-to-income formula that treats legitimate business deductions as if they were lost income. A 1099 contractor or self-employed investor who writes off equipment, mileage, or home office expenses can show strong cash flow on a bank statement and still get declined on paper, simply because the tax return doesn't match what a W-2 employee's pay stub would show.

Hard money lending doesn't work that way. We underwrite the property — its purchase price, after-repair value, and exit strategy — not the borrower's tax return. Whether you're a 1099 contractor, a small business owner, a gig-economy earner, or an investor with irregular income from multiple sources, the deal itself carries the underwriting, not a debt-to-income spreadsheet built for salaried employees.

Who This Fits

Common Borrower Profiles

1099 contractors and freelancers with variable or seasonal income

Small business owners whose tax returns show minimized net income after deductions

Newly self-employed borrowers without two full years of returns yet

Gig-economy earners (rideshare, delivery, contract work) with multiple income streams

Investors between W-2 jobs or transitioning to full-time real estate investing

What We Look At Instead

Purchase price and after-repair value of the target property

Available down payment/reserves — proof of funds, not proof of payroll

Exit strategy — sale, refinance to DSCR, or rental hold

Experience level with the specific project type (flip, rental, ground-up)

Credit history as a general risk indicator, not a qualifying DTI ratio

From Bridge to Long-Term: A Full Path for Self-Employed Investors

Hard money is often the entry point, not the destination — once a project stabilizes as a rental, self-employed investors can typically refinance into a DSCR loan that also skips personal income documentation, qualifying on the property's rental income instead. That combination lets a 1099 or self-employed investor build a portfolio without ever producing a conventional income-verification package.

Self-Employed or 1099 and Ready to Invest?

Send us the deal — purchase price, ARV, and your exit plan. We'll tell you what you qualify for, no tax returns required.

Submit Your Loan Request →

Adaptive Reuse Financing

Office-to-Residential & Commercial Adaptive Reuse —
Financing Buildings Banks Won't Touch Mid-Conversion

Several Texas metros are carrying elevated office and retail vacancy since the shift to hybrid work, and converting an underused commercial building into residential or mixed-use space is often the better economics than a new ground-up build in the same location. It's also exactly the kind of transitional collateral a conventional bank lender won't underwrite — the building's income doesn't match either its old use or its new one until the conversion is finished. Hard money is built for that gap.

Office / Retail

→ Residential or Mixed-Use

Change-of-Use

Permit Required

Milestone

Draws vs. Ground-Up Draws

Refi or Sell

Exit Once Stabilized

An adaptive reuse conversion isn't underwritten like a standard fix-and-flip or a ground-up build — it's its own category with its own risk profile. The shell, structure, and often the core mechanical/electrical infrastructure already exist, which can shrink the construction budget compared to new construction. But the building was never designed for its new use, and closing that gap is where the real underwriting and construction risk lives.

What Makes a Conversion Different to Finance

Municipal approval comes first: a change-of-use permit, and in many cases a full rezoning or variance, has to be in hand or clearly obtainable before a lender will fund construction dollars — see our zoning and non-conforming use financing guide for how that process typically runs. On the physical side, office floorplates are often too deep for residential units to get adequate natural light without significant reconfiguration; plumbing risers have to be relocated or added throughout the building to support kitchens and bathrooms on every floor instead of a handful of restroom cores; and egress, stairwell, and window requirements for habitable residential space are stricter than commercial office code. Parking ratios required for residential occupancy frequently don't match what a commercial building was built with, which can cap the achievable unit count. None of this makes a conversion a bad deal — it makes it a deal that needs a lender who underwrites the conversion plan itself, not just a rehab budget.

Office-to-Apartment

Vacant or underleased office buildings converted to multifamily units

Retail-to-Mixed-Use

Ground-floor retail retained with residential or office added above

Hotel-to-Apartment

Existing room configurations and plumbing cores repurposed into efficiency or one-bedroom units

Industrial-to-Loft

Warehouse and light-industrial space converted to loft-style residential or creative office

Get in Front of These Before Funding

Change-of-use permit and any required rezoning or variance — in hand or with a clear, realistic path

A structural/MEP assessment confirming risers, egress, and floorplate depth work for the planned unit layout

A licensed architect or engineer's set of plans, not a conceptual sketch — draws will track against these milestones

A realistic stabilized exit: refinance into permanent multifamily/commercial debt, or a sale to an operator

Common Underwriting Sticking Points

Floorplate too deep for interior units to meet natural-light requirements without a light well or major reconfiguration

Parking ratio shortfall capping the residential unit count the city will actually approve

Environmental review needed on older industrial or gas-station-adjacent sites before construction can begin

How Draws Work on a Conversion

Draw structure follows the conversion's real milestones rather than a generic rehab schedule: permit issuance, demolition/abatement, structural and MEP rough-in (including riser work), framing of new unit layouts, and finish-out. Because permitting timelines on a change-of-use are often the longest-lead item and the hardest to predict, we build the interest reserve and draw calendar around that reality up front rather than assuming a fixed-rehab timeline.

Have a Commercial Building You're Looking to Convert?

Bring us the building, the intended use, and where you are in the permitting process — we'll tell you how a conversion loan would be structured.

Get Your Hard Money Quote →

ADU Hard Money

Accessory Dwelling Unit (ADU) Hard Money Financing

Adding a backyard cottage, garage apartment, or basement unit to an existing rental property can meaningfully increase its total rental income — but the construction capital is a financing gap most conventional lenders won't fill on an already-financed property. Hard money funds the ADU build against the property's after-completion value.

70-75%

Typical LTC/ARV

Draw-Based

Construction Funding

7-14 Days

Typical Close

6-12 Mo

Typical Term

Many Texas cities have loosened zoning to allow accessory dwelling units on single-family lots, and for investors, adding an ADU to an existing rental is one of the most efficient ways to increase total property income without buying an additional property. But if the primary residence already has a mortgage, most conventional lenders won't originate a second loan for the ADU construction — the financing gap has to be filled by cash, a HELOC (if enough equity exists), or hard money.

Hard money funds the ADU construction as either a standalone loan secured by the property's additional equity, or as part of a larger cash-out refinance/construction package, with draws releasing as the build progresses. Once complete, the combined property (main house plus ADU) typically refinances into long-term financing sized off the total combined rental income.

Common Uses

Common Scenarios

Adding a detached backyard cottage or garage apartment to an existing rental

Converting a basement or attached space into a legal, permitted ADU

Building an ADU on a property acquired specifically for its ADU-add potential

Adding an ADU across a small portfolio of properties to systematically increase income

What Still Matters

Confirm local zoning actually permits an ADU on the specific lot before committing to the project

Permitting and inspection requirements vary significantly by city — budget the time for this

Realistic ADU rental income projection backed by comparable local listings

Utility separation/metering requirements can add cost depending on the jurisdiction

Building Income Without Buying Another Property

An ADU add-on is one of the highest-ROI improvements available on many existing rental properties, since it captures additional rental income from land the investor already owns. Hard money financing is what makes the construction capital available without disturbing the existing first mortgage on the property.

Adding an ADU to a Texas Rental Property?

Send us the property, ADU plans, and budget. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your ADU Loan Request →

Ag Exemption Rollback Tax Guide

Converting Texas Ag Land? Budget for the
Rollback Tax Before You Borrow

A lot of Texas land carries a 1-d-1 agricultural or wildlife valuation that keeps property taxes artificially low — and converting that land to residential or commercial use triggers a rollback tax that catches borrowers off guard mid-deal. We factor it into the deal from day one instead of letting it surprise a borrower at closing.

3 yrs

Lookback Period

Annual Interest on Rollback

Varies

By County Appraisal

At Conversion

When It's Triggered

Not tax advice. Rollback tax rules changed in recent years (the lookback period was shortened from 5 to 3 years) and vary by county appraisal district — borrowers should confirm exact figures with their county appraisal district or a Texas property tax professional before closing.

Land under a 1-d-1 open-space agricultural valuation is taxed on its productivity value rather than market value — often a fraction of what a comparable non-ag parcel pays. The moment the land's use actually changes to something no longer qualifying (residential subdivision, commercial development, storage, etc.), the appraisal district can assess a rollback tax recapturing the tax savings for the lookback period, plus interest, all due at once.

Where This Comes Up in a Deal

Ag-to-Residential Development

Converting a working ranch or farm tract into a residential subdivision or acreage development

Ag-to-Commercial Conversion

Repositioning ag-valued land for retail, industrial, or storage use

Partial Parcel Conversion

Only a portion of a larger ag-valued tract is being developed or sold off

Wildlife Exemption Land

Land under a wildlife management valuation facing the same rollback exposure on conversion

Handled Well

Rollback tax estimate obtained from the county appraisal district before closing, not after

Rollback liability budgeted into the deal's use-of-funds alongside acquisition and development costs

Timing of the use-change coordinated with the borrower's exit or refinance plan

Partial-parcel conversions clearly mapped so only the converted portion triggers rollback

Costly Surprises

Borrower unaware the parcel even carries an ag or wildlife valuation until after closing

Rollback tax bill arrives mid-construction with no budget line item to cover it

Use change triggered on the whole tract when only part was actually intended for development

No exit or refinance plan accounting for the one-time rollback tax hit on the budget

Why This Matters for Hard Money Underwriting

A rollback tax bill can run into real money on a large tract, and it's due whether or not the borrower budgeted for it — which is exactly the kind of line item a bank's standard underwriting sometimes misses entirely on a land deal. We ask about ag/wildlife valuation status up front on every raw land file so it's priced into the deal, not discovered after the county sends the bill.

Converting Ag or Wildlife-Valued Land?

Send us the parcel and intended use change. We'll help you budget the rollback exposure alongside your financing.

Get Your Hard Money Quote →

Appraisal Waiver Fast-Track

Skip the Appraisal Wait:
AVM/BPO-Based Fast-Track Hard Money

A full appraisal can take 1-2 weeks to schedule and complete — time you don't have on a competitive deal with a tight close date. On qualifying deals, we can move forward on an automated valuation model (AVM) or broker price opinion (BPO) instead, cutting real days off your closing timeline.

24-48 hrs

AVM/BPO Turnaround

1-2 Weeks Saved

Vs. Full Appraisal Wait

Lower LTV Cap

Typically Applies

Deal-Dependent

Not Every Property Qualifies

A full appraisal is thorough, but it's also the single slowest step in most closings — appraiser availability, site visit scheduling, and report turnaround routinely add a week or two to a deal that could otherwise close in days. For well-comped, straightforward properties (a standard single-family or small multifamily flip in an active market with plenty of recent comparable sales), an AVM or a licensed broker's price opinion can support the valuation just as reliably, faster and cheaper.

When This Path Makes Sense

Good Fit for Waiver

Property type and area have abundant, recent, tight comparable sales (tract subdivisions, common condo types)

Loan amount and LTV comfortably within a conservative range — waivers typically come with a lower max LTV than a fully appraised loan

You need speed more than maximum leverage — a tighter closing window matters more than squeezing out the last few points of LTV

Property condition is visible and unremarkable — no unusual features an AVM/BPO would miss

Still Needs a Full Appraisal

Unique, high-value, or rural properties with thin comparable sales data

Larger commercial or multifamily assets where income approach and detailed inspection matter

Deals seeking maximum leverage, where a full appraisal supports a higher LTV than a waiver path allows

Properties with significant deferred maintenance, damage, or atypical condition an AVM can't capture

We Tell You Which Path Fits Before You Commit

Not every deal is a good candidate for a waiver, and forcing one onto a property that needs a real appraisal just risks a re-trade at closing. We evaluate the property and your timeline together and tell you honestly whether the fast-track path applies — and if it doesn't, we still move the full-appraisal process as quickly as possible.

Need to Close Faster Than a Full Appraisal Allows?

Send us the property and your target close date. We'll tell you if a waiver path is realistic.

Ask About Fast-Track Closing →

Deal Analysis

After-Repair Value (ARV): The Number That Makes or Breaks Every Texas Flip

ARV is the most important number in fix-and-flip investing — and the most frequently wrong. Overestimate ARV by 10% on a $300K project and you turn a $30,000 profit into a $0 deal. Underestimate it and you walk away from good deals. Here's exactly how experienced Texas investors calculate ARV, how lenders use it, and the adjustments that separate accurate ARV from wishful thinking.

The 70% Rule — Hard Money Lender's Maximum Bid Formula

Max Bid = (ARV × 70%) − Rehab Cost

Example: $300K ARV, $50K rehab → max bid = $300K × 0.70 − $50K = $160,000

How to Pull Accurate Comps: The 6 Rules Texas Investors Use

ARV is only as good as your comparable sales. Most new investors pull comps too loosely — wrong size, wrong location, wrong time period — and end up with an ARV that's $20,000–$40,000 too high. Here's the discipline that keeps your ARV honest.

Same Subdivision or 0.5-Mile Radius

The tighter the geographic boundary, the more reliable the comp. In rural Texas, expand to 1 mile. In urban infill (East Austin, Oak Cliff), stay within 3–4 blocks — micro-markets shift dramatically street by street.

Rule: Same neighborhood before expanding

Sold in Last 90 Days

Use closed sales only — active listings are asking prices, not market prices. In fast-moving markets (DFW suburbs 2024–2026), 90 days captures current market. In slower rural markets, extend to 6 months with caution.

Rule: Closed sales only, 90 days max

Similar Square Footage (±20%)

A 1,400 SF comp does not validate a 1,900 SF subject. Appraisers adjust ~$50–85/SF for size difference in Texas markets — that's a $25,000–$42,500 adjustment on 500 SF. Stay within 20% or adjust explicitly.

Rule: ±20% SF, then adjust $60–80/SF difference

Same Bedroom/Bath Count (or Adjust)

A 3/2 comp for a 4/2 subject requires a bedroom adjustment. Appraisers typically adjust $5,000–$15,000 per bedroom depending on the market. If you're adding a bedroom in your renovation, factor this into projected ARV.

Rule: Match bed/bath or apply $8–12K per bed adjustment

Similar Condition — Fully Updated

Your ARV reflects the fully renovated end state. Use comps that sold fully updated — new kitchen, baths, flooring, paint. Ignore distressed or cosmetic-only sales for ARV purposes. Appraisers call this "as-improved" value.

Rule: Updated comps only — match your renovation standard

Lot Size and Configuration

In Texas, lot size matters more in suburban markets than urban. A corner lot adds value in some neighborhoods and creates traffic noise concerns in others. A 6,000 SF lot vs 10,000 SF may adjust $5,000–$20,000 depending on market.

Rule: Note lot adjustments especially in suburban markets

Common ARV Adjustments — What Each Feature Is Worth in Texas

Feature	Market	Typical Adjustment	Notes
Full kitchen renovation	DFW suburbs	+$15,000–$25,000	New cabinets, granite/quartz, appliances, fixtures
Master bath renovation	Houston suburbs	+$8,000–$15,000	Walk-in shower, new vanity, tile — buyer expectation
Pool (existing)	Suburban TX	+$15,000–$30,000	Adds value in TX heat — especially with fence/landscaping
Pool (add during reno)	Any TX market	Often negative ROI	Cost $40–60K to add; return $15–25K — avoid
Garage conversion (removed garage)	Any	−$10,000–$20,000	TX buyers expect garages — converting to living space hurts resale
Extra bedroom added	DFW/Houston	+$8,000–$15,000	Going from 3/2 to 4/2 — must be permitted
New roof	All TX	+$5,000–$10,000	Buyers discount heavily for old/damaged roof — replace it
Foundation repair (done)	All TX	Neutral–slightly pos	Buyers want warranty — disclose and provide paperwork
Backing to busy road	All TX	−$5,000–$15,000	Can't be renovated away — factor into purchase price
New HVAC	All TX	+$3,000–$6,000	TX summers make HVAC a health issue — buyers notice

ARV Deal Analyzer

Run the full deal math — max bid, loan sizing, total cost stack, and projected profit

ARV ($)

Rehab Budget ($)

Purchase Price ($)

Hold Period (months)

Hard Money Rate (%)

—

70% Rule Max Bid

—

HML Loan (75% of cost)

—

Total Cost Stack

—

Projected Profit

The 4 ARV Mistakes That Kill Texas Flips

Using Active Listings as Comps

Zillow's "Zestimate" and active listings reflect asking prices, not sale prices. In a softening market, listings sit 10–15% above where they'll actually close. ARV must be based on closed sales only — what buyers actually paid.

Ignoring Micro-Market Differences

One street in East Austin or Oak Cliff can be worth $50/SF more than the street behind it. Pulling comps from 1 mile away in an urban infill market introduces massive error. Get hyper-local or get burned.

Projecting Your Renovation Standard onto Buyers

Premium finishes (quartz waterfall island, high-end tile) in a $200K neighborhood don't add $30,000 to ARV — buyers in that price point don't pay for luxury finishes. Match renovation quality to the price point of the neighborhood.

Not Accounting for Seasonality

Texas spring (March–May) is peak selling season — ARV comps from spring may be 3–5% higher than what you'll actually achieve listing in August or November. Adjust your ARV for when you expect to list, not when you buy.

Have a Deal? We'll Run the ARV with You.

Our underwriters have comped thousands of Texas flips. When you submit a deal, we pull comps independently — and if our ARV differs from yours by more than 10%, we tell you why before you commit. Get a same-day indication on any Texas fix-and-flip deal.

Submit Your Flip for Review →

Investor Education

Buying at Texas Foreclosure Auctions:
The Complete Investor's Guide

The courthouse steps are where savvy Texas investors find their best deals — and where unprepared investors lose money. Here's how the process actually works, from notice to deed in hand.

Non-Judicial

Foreclosure Type

No court required — fastest in the country

1st Tuesday

Auction Day

Every county, every month

21 Days

Notice Period

Minimum notice before auction (most give 30+)

Cash Only

Payment Required

Must have funds or pre-commitment to bid

No Inspection

Access to Property

Buyer takes as-is; no due diligence period

How Texas Non-Judicial Foreclosure Works — Step by Step

From the first missed payment to the day you can take possession as the new owner:

Months 1–3 — Default Phase

Borrower Falls Behind on Payments

After 1–3 missed payments, the lender issues a "Notice of Default" and gives the borrower a final opportunity to cure (catch up on payments). Most lenders attempt loan modification or payment plans during this phase. As an investor, you can sometimes negotiate a "short sale" or direct purchase here — before the public auction.

21+ Days Before Auction — Notice of Sale

Notice of Foreclosure Sale Filed

The lender's trustee files a Notice of Trustee's Sale with the county clerk and mails it to the borrower. This notice sets the auction date (always the first Tuesday of the month) and is public record. Track these filings on your county's official website or through third-party services like Foreclosure.com, PropertyRadar, or PublicData.us. This is your lead list.

1st Tuesday of Month — Auction Day

Courthouse Steps Auction

Auctions happen at the county courthouse between 10 AM and 4 PM — exact time varies by property. Register with the trustee that morning. Bidding starts at the lender's minimum bid (usually the outstanding loan balance). You must pay with certified funds or a hard money lender's cashier's check/wire confirmation on the same day. The highest bidder gets the trustee's deed.

Immediately After — Right of Redemption

Texas Has No Redemption Period

This is a major Texas advantage: unlike many states, Texas has no post-sale redemption right for residential properties. Once you win the bid and the trustee issues the deed, the prior owner has no legal right to buy it back. You own it immediately. (Exception: tax deed sales have a 2-year redemption period for homesteads.)

Days 1–30 — Possession

Evicting Occupants (If Needed)

If the prior owner or a tenant is still occupying the property, you must go through the standard Texas eviction process — file a forcible detainer action at the JP court. With a trustee's deed, you'll typically get a hearing within 10 days. Once you have a writ of possession, the constable removes occupants. Never attempt self-help eviction (changing locks) — it's illegal and will get you sued.

Auction Risks Every Investor Must Understand

Buying at auction is not like buying through an agent. The upside is real — so are these risks:

High Risk

No Interior Inspection

You're bidding on a property you may have never seen inside. HVAC failures, foundation issues, mold, and trashed interiors are common. Budget a 10–20% contingency on top of your estimated rehab cost.

High Risk

Second Liens Survive

Winning a first-lien foreclosure wipes the first lien but may NOT clear second mortgages, HOA liens, or IRS liens filed before the first lien. Always run a full title search before bidding. Junior liens on a property you "won" can cost you the property.

Medium Risk

Overbidding in Competitive Markets

Institutional buyers with deep pockets attend DFW auctions in force. Emotional bidding can push prices above ARV. Know your max bid before you arrive and walk away at your number — there's always another auction.

Medium Risk

Same-Day Funding Requirement

If you win a bid and can't fund same-day, you lose the bid deposit and may be barred from future auctions. Hard money lenders can issue a "proof of funds" letter or cashier's check in advance — but confirm your lender is auction-ready before you bid.

How We Fund Auction Purchases — Same Day

The #1 reason investors lose auction deals isn't being outbid — it's not having funding in place. Banks can't move at auction speed. We can.

Proof of Funds Letter: We issue a same-day proof of funds letter specifying the property and maximum bid amount. Most Texas auction trustees accept a lender's POF letter to satisfy the funding requirement on auction day, with wire to follow within 24 hours.

Pre-Commitment: If you're a repeat borrower, we can pre-approve a credit line for auction purchases up to a specified dollar amount — so you can bid confidently on any deal that fits the criteria we've agreed to, without calling us before every auction.

What we need from you: Property address, opening bid amount, your estimated ARV, and your rehab budget. Submit the deal 24 hours before the auction and we can be ready when the hammer drops.

Have an Auction Deal? We Can Fund It.

Get a proof of funds letter or pre-commitment before the first Tuesday. We've funded courthouse-steps deals across DFW, Houston, San Antonio, and Austin.

Get Auction Funding →

Cross-Collateral & Blanket Financing

Blanket Hard Money Loans:
One Loan, Multiple Properties, Faster Scaling

Investors scaling a rental or flip portfolio hit a wall financing one property at a time — every deal needs its own underwrite, its own closing, its own timeline. A blanket loan cross-collateralizes multiple properties under a single note, letting you acquire, cash-out, or bridge an entire portfolio in one transaction.

2-10+

Properties per Loan

65-75%

Blended LTV

1 close

vs. Multiple

Partial

Releases Available

A blanket loan (also called a portfolio or cross-collateralized loan) uses several properties together as collateral for a single loan, rather than financing each one separately. For an investor with 3-10 rental properties or a flipper juggling multiple projects, this means one underwriting file, one closing, and one payment instead of managing several separate notes with different lenders, different terms, and different maturity dates.

The structure also unlocks leverage that individual-property financing often can't: a strong-performing property with substantial equity can offset a newer or thinner-equity property in the same pool, letting the blended LTV work even when one asset alone wouldn't qualify. Most blanket loans include a partial release clause, so you can sell or refinance out a single property from the pool without unwinding the entire loan — the remaining properties simply continue securing the reduced balance.

Blanket Loan vs. Individual Property Loans

Factor	Blanket / Cross-Collateral	Individual Loans
Closings needed	1 for the whole portfolio	1 per property
Underwriting	Portfolio-level, blended LTV	Separate file each property
Leverage flexibility	Strong assets offset weaker ones	Each property stands alone
Exit flexibility	Partial release available	Each loan paid off independently
Best for	3+ properties, active scaling	1-2 properties, simpler exits

Good Fit for a Blanket Loan

You own or are acquiring 3+ investment properties and want to consolidate financing

You're using strong-equity properties to unlock cash-out for new acquisitions

You want one closing and one servicing relationship instead of juggling multiple lenders

Your portfolio has a mix of stabilized rentals that can offset a value-add or bridge property

Things to Structure Carefully

Confirm partial release terms upfront — know exactly what it costs to release one property from the pool

Cross-default risk — a problem on one property can technically affect the whole note if not structured with release provisions

Title and entity structure across properties needs to be clean and consistent before closing

Not ideal if you plan to sell properties individually in the near term without a clear release schedule

Scaling a Multi-Property Portfolio?

Send us your property list and current debt structure. We'll tell you what a blanket loan looks like — blended LTV, terms, and release structure — usually within 48 hours.

Submit Your Portfolio for Review →

Boat & RV Storage Hard Money

Hard Money for Boat & RV Storage Facilities

Acquiring or developing an outdoor or covered boat/RV storage facility in Texas — a low-maintenance, high-margin income property most conventional lenders underwrite too slowly for a competitive land deal.

A Real Estate Play With Almost No Operating Complexity

A boat and RV storage facility is close to the simplest income property an investor can operate: paved or graveled outdoor parking spaces, sometimes a covered or fully-enclosed building tier for premium units, a perimeter fence and gate-access system, and minimal tenant-facing maintenance beyond mowing and gate repairs. Texas's boating and RV ownership rates — driven by the state's lake and coastal recreation culture — keep demand for this storage type strong in growing suburban and exurban markets around Austin, Houston, San Antonio, and the DFW metroplex, especially where HOA rules increasingly restrict driveway parking of boats and RVs.

Hard money fits this asset class well because the best acquisition or raw-land opportunities move fast and rarely wait on a 60-90 day conventional commercial loan — a bridge loan lets an investor secure the land or existing facility now, build out or add covered units, and refinance into a conventional or SBA loan once occupancy stabilizes.

What Qualifies

Raw land acquisition and pad/fence/gate development for a new facility

Acquisition of an existing outdoor or covered storage facility

Adding covered or fully-enclosed premium unit tiers to an existing lot

Gate-access and security system upgrades tied to a value-add repositioning

What Lenders Look At

Zoning approval for outdoor vehicle storage use, a frequent friction point near residential areas

Drainage and paving quality — surface water pooling is the most common maintenance complaint

Local competitive supply and typical monthly rent per space in the submarket

Exit plan and stabilized occupancy assumptions before a conventional refinance

Developing or Acquiring a Boat & RV Storage Facility?

Get a same-day term sheet on the land or facility — move before the deal gets away from you.

Get Your Free Quote

Who We Fund

6 Types of Investors Who Use
Hard Money — and Why

Hard money isn't just for distressed borrowers. It's a precision tool that sophisticated real estate investors use when speed, flexibility, or property condition rules out conventional financing.

🔨

The Active Fix & Flipper

2–6 flips per year

Doing multiple deals simultaneously. Can't wait 60 days for conventional approval — a deal that sits dies. Needs fast closes and is comfortable with higher rates because the hold time is short (4–6 months).

Why hard money: Closes in 2 weeks. Interest cost on a 5-month flip at 12% is ~$7,500 on a $150K loan — a rounding error vs. the $40K profit on a good deal.

🏗️

The First-Time Flipper

Learning the system

Has the capital but not the track record for bank financing. Hard money lenders evaluate the deal and the down payment — not your history. First deal closes; first profit builds the track record for the next one.

Why hard money: Banks require 2+ years self-employment history. Hard money requires a good deal and 20–25% down. The asset qualifies the loan.

🏢

The Portfolio Builder (BRRRR)

Recycling capital at scale

Buys distressed, renovates, rents, refinances into DSCR or conventional, pulls capital back out. Hard money is the acquisition vehicle — cheap enough to hold for 6–12 months while renovation and seasoning happen.

Why hard money: DSCR refinance requires a stabilized, rented property. Hard money bridges the gap between distressed acquisition and lendable condition.

⚡

The Auction Buyer

30-day close deadlines

Courthouse steps, REO auctions, and online platforms often require closing in 15–30 days with proof of funds upfront. No conventional lender can move that fast. Hard money can.

Why hard money: Auction rules don't accommodate bank timelines. A hard money commitment letter (or proof of funds letter) wins the bid. Banks get you disqualified.

🔄

The Bridge Borrower

Buying before selling

Has equity in an existing property but not the liquid cash for a new acquisition. Uses hard money to bridge — buys the new property, sells the old one, pays off the bridge. No contingency, clean close.

Why hard money: Conventional lenders count the old mortgage in your DTI, killing the qualifying math. Hard money lends against the asset — your DTI is irrelevant.

📋

The Self-Employed Investor

Too many write-offs for banks

Business owners and freelancers who write off expenses to minimize taxes end up showing $40K in taxable income on a $300K actual income. Banks decline the loan. Hard money lenders look at the deal, not the 1040.

Why hard money: The only income document we require is your word and the property's rent roll. No Schedule C forensics. No 24-month average income calculations.

The Kinds of Deals Hard Money Solves

These are representative deal types — the situations where hard money solves the problem a bank can't:

🏚️

Distressed SFR — Dallas$95K purchase, $45K rehab, $210K ARV. Property wouldn't qualify for conventional — no working HVAC. Funded at 85% LTV of purchase.

Days to Close

⏱️

Auction Purchase — HoustonCourthouse steps sale. 21-day close required. $320K purchase. Proof of funds issued in 4 hours. Funded in 18 days.

Days to Close

🔄

Bridge Loan — Austin Investor$1.2M commercial property. Buying before prior property sold. 90-day bridge. Paid off clean at sale of prior asset.

Days to Close

🏗️

First Flip — San AntonioNo prior flip history. $130K purchase, $28K rehab budget. Borrower had 30% down and a solid contractor. We funded the deal; they made $44K net profit.

Days to Close

When Hard Money Is NOT the Right Tool

We'd rather tell you now than waste your time. Hard money doesn't fit every situation:

Primary residence purchase (TILA/consumer lending rules)

Long-term hold with no exit strategy (rates too high for 5+ years)

Deals with no equity cushion (we need 20–25% skin in the game)

Rural land with no improvements and no timeline

Borrowers who can qualify for conventional (bank rates are cheaper)

Speculative deals with no clear ARV or rental comps

See If Your Deal Qualifies

Submit your deal summary — property, price, your plan. We'll tell you within 24 hours whether we can fund it and at what terms.

Get Pre-Qualified →

Bridge vs. DSCR Decision Guide

Short-Term Bridge or Long-Term DSCR Hold? How to Decide Before You Buy

The financing structure you choose at acquisition should be driven by your exit plan — not the other way around. Here's how to decide between a short-term hard money bridge and a long-term DSCR rental loan before you ever make an offer.

The single most common financing mistake we see from newer investors isn't picking the wrong lender — it's picking the wrong loan structure for their actual exit strategy. An investor planning to renovate and refinance into a long-term rental should be thinking about DSCR qualification from day one, not scrambling to find a permanent loan after a 12-month bridge note comes due. Conversely, an investor planning a quick flip who takes out a 30-year DSCR loan is often paying for amortization and reserve requirements they'll never use.

The Core Question: What's the Actual Exit?

Bridge financing is priced and structured for speed and a short hold — typically 6-18 months, interest-only, underwritten heavily on the deal and the plan rather than long-term cash flow. DSCR financing is priced for a 30-year hold, underwritten on the property's rental income relative to the payment, with lower rates than bridge debt but a longer qualification and closing process. Neither is "better" — they solve different problems.

Short-Term Bridge (Hard Money)

Typical Term

6-18 months

Underwriting Basis

Property + plan, not DSCR

Rate

Higher — call for today’s rate

Best For

Flip, quick reposition, auction buy

Long-Term DSCR

Typical Term

30-year fixed or ARM

Underwriting Basis

Rent-to-payment ratio

Rate

Quoted on your deal

Best For

Buy-and-hold rental, BRRRR refinance

Choose Bridge When

Property needs rehab before it can qualify for rental-income underwriting

Exit is a sale or refinance within 6-18 months

Speed to close matters more than rate — competitive offer, auction, or off-market deal

Property is currently vacant or non-conforming for a standard appraisal

Choose DSCR When

Property is rent-ready or already leased at or near market rent

Plan is a long-term hold — 5+ years minimum

Rate matters more than speed — you have 30-45 days to close

You want fixed, predictable long-term debt service on the asset

The BRRRR Bridge-to-DSCR Sequence

Most experienced investors don't pick one or the other — they sequence both. Acquire and renovate on a short-term bridge loan sized for speed, then refinance into a DSCR loan once the property is stabilized and rent-ready, locking in long-term financing at the new, post-rehab value. Planning both legs of that sequence before closing on the property avoids the scramble of shopping for a refinance under a looming maturity deadline.

Not Sure Which Structure Fits Your Deal?

Tell us the property and your exit plan — we'll tell you whether bridge, DSCR, or a planned sequence of both makes the most sense.

Get a Financing Recommendation →

BRRRR Method Financing

BRRRR Method Hard Money:
Buy, Rehab, Rent, Refinance, Repeat — Funded Right

The BRRRR strategy only works if the first two steps — Buy and Rehab — are financed fast enough and cheap enough to leave real equity for the refinance to pull out. That's what hard money is built for: quick acquisition and rehab capital based on after-repair value, so you can get to the Refinance step with a property worth financing.

Buy

Hard money purchase funded fast, priced off ARV not just current condition

Rehab

Draw-schedule construction funds released as work completes

Rent

Property stabilized with a paying tenant in place

Refinance

DSCR refinance pulls cash out based on new appraised value

Repeat

Cash-out proceeds fund the next hard money purchase

Investors running BRRRR at scale live or die on speed and leverage in the first two steps. A hard money loan sized correctly against ARV — not just purchase price — means less of your own cash tied up in the deal, which is the entire point of the strategy. We underwrite the rehab scope and ARV together at the front end, so you know before you close roughly what the property should appraise for once the refinance step comes around.

Where Most BRRRR Deals Actually Break

What Makes a Deal Work

Realistic ARV backed by comps, not wishful thinking — this is what the refinance will actually appraise against

Rehab budget with contingency, and a contractor who can hit the timeline

A rental market that supports the rent needed for DSCR refinance qualification

Enough seasoning (or a delayed-financing structure) lined up before you need to refinance out

Where Deals Stall

Over-optimistic ARV that the refinance appraisal doesn't support, leaving cash trapped in the deal

Rehab runs over budget or timeline, pushing the refinance further out than planned

No refinance lender lined up in advance — scrambling for a DSCR refi after the rehab is finished

Rent comps too thin to hit DSCR ratio requirements on the refinance

We Fund the Buy and Rehab — And Can Point You to the Refinance

We finance steps one and two of your BRRRR — the purchase and the rehab draws — and because we work with DSCR refinance lenders regularly, we can help you understand what the step-four refinance will actually need to see before you're mid-project trying to figure it out.

Ready to Run the Numbers on Your Next BRRRR Deal?

Send us the purchase price, scope of work, and target ARV. We'll tell you what we can fund — usually within 24-48 hours.

Get Your BRRRR Deal Financed →

Builder Line of Credit

Builder Lines of Credit:
One Facility Instead of Refiling for Every Spec Home

A builder running several spec homes a year burns real time and closing costs re-applying loan-by-loan. A revolving builder line of credit sets a borrowing base against your active work-in-progress inventory once, so drawing on the next lot is a request against an existing facility — not a brand-new loan file.

Revolving

Facility Structure

WIP-Based

Borrowing Base

Days, Not Weeks

Per-Draw Turnaround

Multiple Lots

Financed Under One Facility

A one-off spec home inventory loan finances a single project from acquisition through sale — fine for a builder doing one or two homes a year. A builder line of credit instead sets an overall facility size and borrowing-base formula against a builder's active pipeline, so completing and selling one home frees up capacity to start the next without a fresh underwriting cycle each time.

Who This Fits

Repeat Spec Builders

Builders consistently running 3+ spec homes at a time across a rolling pipeline

Small Production Builders

Builders scaling from one-off custom projects into a repeatable, multi-lot model

Land-and-Build Operators

Builders who acquire lots and build out on a continuous cycle within one market

Established Track-Record Builders

Builders with a completed-project history who want faster access than loan-by-loan filing

Good Fit for a Line

Consistent pipeline of multiple active or near-term spec home starts

Track record of completing and selling prior spec homes on schedule

Organized draw and inventory reporting the lender can underwrite the base against

Builder wants to avoid re-underwriting from scratch on every new lot

Better Fit for a Single Loan

First-time builder with no completed spec home track record yet

Only one project planned with no near-term pipeline behind it

Irregular or undocumented project reporting that's hard to underwrite as a rolling base

Highly custom, one-off project that doesn't fit a repeatable borrowing-base formula

Why the Borrowing Base Matters More Than the Rate

The real value of a builder line isn't just pricing — it's how the borrowing base is calculated against your work-in-progress and how quickly a completed sale frees up capacity for the next lot. We structure the base formula around how you actually build and sell, so the facility scales with your real pipeline instead of sitting fixed against outdated assumptions.

Running Multiple Spec Homes at Once?

Tell us about your current and planned pipeline. We'll structure a line that scales with it.

Get Your Hard Money Quote →

Business-Purpose Loan Requirements

Why Hard Money Loans Must Be "Business Purpose"
(And What That Actually Means for You)

First-time borrowers sometimes ask if they can hard-money-finance the house they're going to live in. The answer is almost always no — and it's not a lender preference, it's federal law. Here's what "business purpose" actually requires and why it protects you as much as it protects us.

TILA/Dodd-Frank

Federal Basis for the Rule

Investment/Business

Required Loan Purpose

Entity or Individual

Borrower Can Be Either

No Ability-to-Repay

Consumer Rules Not Applied

Hard money and private lenders operate outside the heavily regulated consumer mortgage system (TILA, RESPA, and the Ability-to-Repay/Qualified Mortgage rules) specifically because these loans are for business and investment purposes, not for financing a primary residence. That exemption is what lets us move fast, skip income-verification paperwork, and underwrite the deal instead of the borrower's W-2 — but it only applies if the loan genuinely serves a business purpose.

"Business purpose" doesn't mean you need an LLC (though many investors use one for liability and tax reasons) — it means the money is going toward an investment, business, or commercial activity: buying a rental property, funding a fix-and-flip, bridging a business acquisition, or similar. It specifically excludes financing a home you or an immediate family member intends to occupy as a primary or even secondary residence.

What Qualifies vs. What Doesn't

Qualifies as Business Purpose

Purchase or rehab of a property to rent out or resell (fix-and-flip)

Cash-out refinance of an investment property to fund another deal

Bridge financing for a business acquisition or commercial expansion

Property held in an LLC or other entity used strictly for investment activity

Does Not Qualify

Buying a home you or your spouse/dependent will live in as a primary residence

Financing a second home intended for personal vacation use, not rental

Refinancing your own owner-occupied residence for personal debt consolidation

Any use where the stated purpose doesn't match the actual, documented intent

Why We Ask the Questions We Ask

When we ask about your intended use of the property, occupancy plans, or exit strategy, it's not idle curiosity — it's the underwriting basis for the entire loan being legal to originate as a business-purpose transaction. Answering honestly protects both sides: it's what keeps the loan structured correctly from day one, with no compliance issue surfacing later at closing or resale.

Have an Investment or Business-Purpose Deal to Finance?

Tell us the property and your plan for it. We'll confirm it qualifies and get you terms fast.

Check Your Deal →

Specialty Property Financing

Cannabis & Hemp Real Estate Financing

Cultivation facilities, dispensary buildouts, and hemp-processing warehouses sit outside what most banks will touch — federal illegality under the Controlled Substances Act keeps national and even most regional banks off this asset class entirely, no matter how compliant the operator or how strong the state license.

PROBLEM

Bank Charter Risk

Federally chartered banks avoid plant-touching real estate outright, regardless of state legality

PROBLEM

Specialized Buildouts

Grow rooms, HVAC/dehumidification, security vaults, and odor mitigation don't appraise like standard commercial space

PROBLEM

Licensing Timelines

State license approval can stall a purchase for months — most sellers won't wait on a bank's timeline

OUR ANSWER

Private, Asset-Based Capital

We underwrite the real estate and the operator's plan directly — no federal chartering constraint to work around

Why This Asset Class Needs a Private Lender

State-licensed cannabis operators — cultivators, processors, dispensaries — and the fully legal hemp/CBD industry both routinely get turned away from conventional commercial financing, not because the deal is weak but because the property itself is classified as plant-touching or adjacent to it. We lend as a private capital source, not a federally regulated depository institution, so a state-legal cannabis or hemp operation is a property type we can actually finance rather than an automatic decline.

What We Look At

State licensing status and standing with the regulating agency, the real estate itself (industrial/warehouse cultivation space, retail dispensary buildout, or raw land for a ground-up facility), and a realistic use-of-funds plan for tenant improvements — reinforced electrical service, specialized HVAC, security systems, and compliant waste handling all factor into as-is and after-repair value the same way any other specialized commercial buildout would. Loans are sized against the real estate and improvements, structured as short-term bridge or rehab financing to get a facility license-ready or stabilize an operating dispensary lease.

Hemp and CBD-only operations (federally legal under the 2018 Farm Bill) face fewer of these hurdles but still get lumped in with cannabis by risk-averse underwriters — we evaluate the actual business and real estate on their own merits rather than applying a blanket policy.

Have a Cannabis or Hemp Property to Finance?

Tell us about the license, the space, and the plan — we'll tell you fast whether it's fundable.

Talk to a Loan Officer →

Seller Carryback + Hard Money

Seller Carryback + Hard Money Combo:
Stretch Your Down Payment Without a Full Cash Purchase

When a seller is willing to carry a second position, pairing that carryback note with a hard money first lien lets an investor control a property with far less cash out of pocket than either option alone — common on deals where the seller wants a clean exit but doesn't need all their equity in cash immediately.

Seller carryback financing means the seller acts as a lender for part of the purchase price, typically in a second-lien position behind your primary loan. On its own, a carryback still usually requires the buyer to bring a meaningful down payment to satisfy the first-lien lender. Combining it with a hard money first mortgage changes that math: the hard money lender funds the bulk of the purchase price against the property's value, the seller carries a second note for a portion of the remaining gap, and the buyer's actual cash requirement shrinks to whatever's left — sometimes 10% or less of the purchase price.

This structure shows up most often on deals where the seller has significant equity, isn't in a rush for full cash proceeds, and wants a clean, fast close without a buyer's conventional financing contingency dragging the timeline. It's especially useful for buyers scaling a portfolio who don't want to tie up large amounts of cash in a single down payment.

Sample Capital Stack

$400,000 Purchase — Combined Structure

Hard Money First Lien (70% of purchase)$280,000

Seller Carryback Second (20% of purchase)$80,000

Buyer Cash Required (10%)$40,000

Good Fit for This Structure

Seller has substantial equity and is open to carrying part of the price on a note

Buyer wants to preserve cash for rehab, reserves, or the next acquisition

Property cash-flows or has a clear value-add plan supporting both lien payments

Seller and buyer can agree on subordination terms acceptable to the hard money lender

Clear exit plan — refinance or sale — to pay off both liens within the hard money term

Structuring Requirements

Hard money lender must approve the seller-carry terms and subordination — not all lenders allow a second lien

Combined debt service (first + second) must still make sense against the property's income or exit plan

Seller note terms (rate, term, balloon) need to be documented clearly and recorded correctly

Total combined leverage typically capped around 85-90% of purchase price — this isn't a 100%-financing workaround

Have a Seller Willing to Carry a Note?

Send us the purchase price, the seller's proposed carryback terms, and the property details. We'll tell you what the combined structure looks like and whether we can subordinate to it.

Submit Your Carryback Deal →

Cash-Out Refinance Hard Money

Cash-Out Refinance Hard Money for Texas Investors

Sitting on equity in a property you own free and clear or with a low loan balance? Hard money cash-out refinancing lets you pull that equity out fast — days, not weeks — to fund your next acquisition, cover a renovation, or bridge a gap conventional lenders won't move quickly enough to fill.

High LTV

Cash-Out Leverage, Per Deal

7-10 Days

Typical Close

No Seasoning

Options Available

6-24 Mo

Typical Term

Conventional cash-out refinancing runs on bank timelines — full income documentation, appraisal scheduling, underwriting review, often 30-45 days start to finish. That's too slow when the reason you need the cash is time-sensitive: an off-market deal with a closing deadline, a renovation that's stalled without funding, or a portfolio opportunity that won't wait. Hard money cash-out refinancing moves at the speed of the opportunity, not the speed of a bank's process.

Unlike conventional refinancing, hard money doesn't require years of seasoning before you can pull equity out — some lenders will refinance a property acquired just months ago if the value supports it. The tradeoff is a shorter term and a higher rate than a conventional refi, which is why this tool works best as a bridge: pull the equity now, deploy it, then refinance into permanent DSCR financing once the next project stabilizes.

Common Uses

Common Scenarios

Pulling equity from a stabilized rental to fund the next acquisition's down payment

Cashing out a paid-off or low-balance property to bridge a time-sensitive deal

Refinancing out of a maturing hard money or private note without waiting on conventional seasoning

Funding a renovation on a different property using equity from one already owned

Consolidating debt across a small portfolio into a single bridge position

What Still Matters

A clear exit plan — sale, DSCR refinance, or payoff from another liquidity event

Current appraised value supports the cash-out amount at conservative LTV

Clean title with no unresolved liens or judgments against the property

Higher rate than conventional refinancing — cost of speed and flexibility, not a permanent solution

A Bridge, Not a Destination

Hard money cash-out is most useful as a short-term liquidity tool — pull the equity, use it to move on the next opportunity, then refinance into long-term DSCR or conventional financing once the timeline pressure is gone. Investors who use it well treat it as working capital, not permanent leverage.

Need to Pull Equity Fast on a Texas Property?

Send us the property, current value, and how much you need. We'll tell you what you qualify for — often within 24 hours.

Submit Your Cash-Out Request →

Co-Living / Room-by-Room Hard Money

Co-Living & Room-by-Room Rental Conversion Hard Money

Converting a single-family home or small multifamily property into room-by-room co-living rentals can multiply rental income compared to a standard lease — but it requires renovation capital most conventional lenders won't fund without an existing operating history. Hard money bridges the purchase and conversion, then refinances once the property is stabilized at co-living rents.

70-75%

Typical LTC

Draw-Based

Renovation Funding

7-14 Days

Typical Close

6-18 Mo

Typical Term

Co-living — renting a property by the room, often with shared common areas, to multiple unrelated tenants — has grown fast in Texas's major metros where housing costs have pushed young professionals and students toward shared-housing arrangements. But the conversion work (adding locks, reconfiguring common space, sometimes adding bathrooms) needs real capital before the property can generate the higher room-by-room rent roll that makes the strategy work in the first place.

Hard money funds the acquisition and renovation together, with draws releasing as work completes, so investors aren't carrying the full conversion cost out of pocket. Once the property is renovated and leased at stabilized co-living rents — typically well above what a single-lease rental would generate on the same property — it refinances into long-term financing sized off the new, higher income.

Common Uses

Common Scenarios

Converting a single-family home into a 4-6 bedroom co-living rental

Renovating a small multifamily property for room-by-room leasing

Adding bathrooms, locks, or common-area upgrades to support co-living tenants

Repositioning a distressed or underperforming rental into a higher-yield co-living unit

Building a portfolio of co-living properties near universities or major employment centers

What Still Matters

Check local zoning and occupancy limits — some cities restrict unrelated-occupant room rentals

Realistic rent-by-room projections backed by comparable co-living listings in the market

A clear exit plan into long-term refinance once the property is stabilized

Fire/life-safety code compliance for the increased occupant count

From Conversion to Stabilized Refinance

The typical path: hard money funds the purchase and renovation, the property gets converted and leased room-by-room, and once occupancy and rent collections stabilize, it refinances into long-term financing sized off the property's actual co-living income — which is frequently well above what the same property would qualify for as a standard single-lease rental.

Converting a Texas Property to Co-Living Rentals?

Send us the property, renovation scope, and target rent-by-room. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Co-Living Loan Request →

Commercial Bridge Lending

Commercial Hard Money Loans in Texas:
Fast Capital for Value-Add & Bridge Deals

Hard money isn't just for residential flips. Texas investors use commercial hard money to acquire distressed retail, reposition underperforming multifamily, bridge to permanent financing on stabilizing commercial assets, and fund ground-up construction when bank timelines don't work. The underwriting is asset-based, not income-based — which means speed and flexibility that no conventional commercial lender can match.

Most Active

Multifamily Bridge

Acquire 5–50 unit apartment at below-stabilized occupancy. Rehab units, lease-up to 90%+, then refi into DSCR perm. Hard money bridges the gap between acquisition and stabilization.

LTV: 65–70% as-is · Rate: call for today's rate · Term: 12–24 mo

Value-Add

Retail Strip Repositioning

Buy a vacant or distressed strip center at a deep discount, execute lease-up with new tenants, then refi perm at stabilized value. Hard money funds acquisition + TI + leasing commissions during the repositioning period.

LTV: 60–65% · Rate: call for today's rate · Term: 12–18 mo

Income Replacement

Office Conversion

Distressed suburban office being converted to medical, coworking, or residential. Hard money bridge while permits and renovation are underway — then DSCR or conventional perm at stabilization. Dallas and Houston have active conversion pipelines.

LTV: 58–65% · Rate: call for today's rate · Conversion: 6–18 mo build

Ground-Up

Small Commercial Construction

Build-to-suit or speculative commercial construction for retail, medical, or industrial use. Draw-based funding tied to construction milestones. Hard money construction lenders move faster than banks and don't require 2 years of operating history.

LTC: 65–70% · Rate: call for today's rate · Term: 12–18 mo + extension

Distressed Purchase

Foreclosure / REO Commercial

Buy commercial properties at courthouse steps, bank REO, or note sale. All-cash or hard money required — bank foreclosure and note purchases don't allow conventional financing contingencies. Speed to close is the competitive advantage.

LTV: 55–65% · Rate: call for today's rate · Close: 5–10 business days

Perm Bridge

Refinance Bridge

Property qualifies for perm but conventional lender needs 60–90 days. Hard money closes in 10 days, lets you fund the purchase or payoff the matured loan, then you refinance into bank financing at your leisure.

LTV: 65–70% · Rate: call for today's rate · Term: 6–12 mo

Commercial Hard Money vs. Bank Construction Loan

Factor	Commercial Hard Money	Bank Construction Loan
Close timeline	7–21 days	60–120 days
Income documentation	Asset-based — minimal docs	Full 2-yr tax returns, P&L, global cash flow
Stabilized property required	No — lends on as-is or as-built value	Often requires stabilization before funding
Borrower experience required	1 commercial deal preferred, not required	3–5 years track record often required
Interest rate	Quoted on your deal	Prime plus a program-set spread (lower long-term)
Points / origination	2–4 points upfront	0.5–1% origination
Extension flexibility	Usually available at 1–2 points	Often rigid — must refi or pay off
Portfolio / distressed assets	Yes — lends on challenged properties	Must be standard, well-leased, conventional

Real Texas Commercial Hard Money Scenarios

Houston — 18-Unit Apartment, 55% Occupied

Bridge → DSCR refi playbook

Purchase price $920,000

As-is value (appraised) $980,000

Hard money loan (65%) $637,000

Rehab budget $108,000

Rate / term 11.5%, 18 months

Stabilized value (90% occ) $1,420,000

DSCR refi (70%) $994,000

Cash-out after bridge payoff $357,000

DFW — Distressed Strip Center, 3 of 8 Units Leased

Value-add acquisition + lease-up

Purchase (courthouse steps) $1,100,000

Hard money (60% as-is value) $720,000

TI + leasing costs $85,000

Rate / term 12%, 12 months

Hard money cost (12 mo) $86,400 interest + 3 pts

Stabilized NOI (8 tenants) $148,000/yr

Perm value @ 7% cap $2,114,000

Equity created ~$800,000

Commercial Deal in Texas That Needs Fast Capital?

Multifamily bridge, retail repositioning, office conversion, ground-up construction, or foreclosure purchase — if the deal makes sense at the asset level, we can fund it. No 60-day bank process. No stabilized income requirement. Submit your deal and we'll have an indication of interest within 24 hours and close in 2–3 weeks.

Submit Your Commercial Deal →

Condemned & Red-Tagged Property Rehab

Condemned & Red-Tagged Property Rehab Hard Money

A property tagged uninhabitable by the city — code violations, an expired certificate of occupancy, or a formal condemnation notice — is exactly the kind of deeply discounted opportunity most buyers and every conventional lender will walk away from. Hard money funds the purchase and the rehabilitation needed to bring it back into code compliance.

60-70%

Typical LTC/ARV

Draw-Based

Rehab Funding

7-14 Days

Typical Close

6-18 Mo

Typical Term

A city red-tag or formal condemnation notice — triggered by code violations, structural issues, unpermitted work, or safety hazards — makes a property unfinanceable through conventional channels and unlivable until the underlying issues are corrected and re-inspected. That combination scares off most buyers entirely, which is exactly why these properties can trade at a steep discount to comparable, code-compliant real estate in the same area.

Hard money is built for exactly this situation: the loan funds the purchase and the full rehabilitation scope needed to clear the code violations, pass re-inspection, and get the certificate of occupancy reinstated, with draws releasing as remediation work completes and gets verified. Once the property is brought back into compliance and stabilized, it can refinance into conventional financing like any other renovated property.

Common Uses

Common Scenarios

Acquiring a red-tagged or condemned property at a steep below-market discount

Rehabilitating a property with an expired or revoked certificate of occupancy

Correcting unpermitted work and code violations to bring a property back into compliance

Structural or safety-hazard remediation on a distressed acquisition

What Still Matters

A detailed city inspection report identifying every violation is essential before you bid

Realistic remediation budget — condemned properties often have hidden issues beyond the cited violations

Coordination with the city's building department on re-inspection requirements and timeline

A licensed, experienced contractor familiar with code-compliance rehab, not a standard cosmetic flip crew

Deep Discounts for Experienced Rehabbers

Condemned and red-tagged properties are an advanced acquisition strategy — the discount reflects real complexity and risk that requires experience to manage well. For investors who know how to scope and execute a code-compliance rehab, they represent some of the most significant margin opportunities in distressed real estate.

Found a Condemned or Red-Tagged Property Deal?

Send us the property, violation details, and rehab scope. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Loan Request →

Ground-Up Construction Budgeting

Ground-Up Construction Budgets: What Lenders Actually Want to See

A vague construction budget is the #1 reason ground-up spec and build-to-rent deals get delayed or declined. Here's how we underwrite a construction budget line by line — and how to build one that survives review.

Fix-and-flip rehab budgets and ground-up construction budgets are underwritten very differently. A rehab budget is a punch list against an existing structure; a construction budget has to account for site work, foundation, framing, and every trade from a bare lot to a certificate of occupancy — with far more that can go wrong, and far more categories where soft estimates turn into hard overruns. Lenders who fund ground-up deals want a trade-by-trade budget backed by actual contractor bids, not a builder's back-of-envelope per-square-foot number.

A Realistic Texas Spec-Home Budget Breakdown

Category	Typical % of Hard Costs	What Gets Reviewed
Site work & utilities	8-12%	Grading, drainage, water/sewer/electric tie-ins
Foundation	8-10%	Soil report, slab vs. pier-and-beam engineering
Framing & shell	18-22%	Lumber contract pricing, labor bid
Mechanical, electrical, plumbing	15-18%	Licensed sub bids, not allowances
Interior finish-out	20-25%	Cabinets, flooring, fixtures vs. comp-supported finish level
Exterior & landscaping	6-9%	Siding/masonry, driveway, grading
Contingency	8-12%	Required — we will not fund a budget with zero contingency

Budgets That Get Approved Fast

Trade-by-trade line items backed by written contractor bids, not per-sq-ft guesses

8-12% contingency built in — not treated as optional

Finish-level assumptions matched to actual neighborhood comps

Timeline with realistic sequencing — foundation before framing bids are due, not concurrent

Builder or GC with a documented track record of similar completed projects

Budgets That Get Sent Back

Single lump-sum "construction cost" number with no trade breakdown

Zero or under-5% contingency

Finish level assumptions well above what comps in the area support

No soil report on a market with known expansive clay (common across North Texas)

First-time builder with no completed ground-up projects to reference

How Draws Get Released Against the Budget

Once approved, funds release in draws tied to inspected completion milestones — foundation poured, framing complete and dried-in, mechanicals roughed in, finish-out complete — rather than a flat schedule. A well-built budget with clear line items makes each draw inspection faster because there's a specific scope to verify against, not a guess.

Building a Ground-Up Project in Texas?

Send us your budget and plans. We'll tell you what needs tightening before it goes to underwriting.

Get Your Budget Reviewed →

Fix & Flip Fundamentals

How to Find & Vet a Texas Rehab Contractor
Before You Touch Hard Money

The #1 cause of fix-and-flip disasters isn't the deal — it's the contractor. Here's a systematic framework to find, vet, and manage rehab contractors in Texas before a dollar of hard money changes hands.

Step 1

Verify the License

Texas does not require a general contractor license — but every trade subcontractor (electrician, plumber, HVAC) must be licensed by the state. Verify licenses at the Texas Department of Licensing and Regulation (tdlr.texas.gov) and the Texas State Board of Plumbing Examiners.

Search the contractor's business name and owner name. Unlicensed subs working on your property put you in legal jeopardy and void your insurance.

Step 2

Require Proof of Insurance

Before they step foot on your property: general liability insurance ($1M minimum) and workers' compensation. Ask for a certificate of insurance naming you as additional insured. If a worker is injured on your property and the GC has no workers' comp, you could be liable.

A GC who won't provide a COI immediately is not a GC worth hiring. This is non-negotiable — full stop.

Step 3

Get 3 Detailed Bids

Never accept a single bid. Get three itemized written bids on the same scope of work. "Itemized" means line-by-line labor and materials — not a single lump sum. Compare the scope, not just the number. The cheapest bid often omits work the other two included.

If all three bids are within 10–15%, your scope is well-defined. If one bid is 40% lower than the others, something is being omitted.

Step 4

Call References — Specifically

Ask for 3–5 references from jobs completed in the last 12 months that were similar in scope. Call every one. Ask: Did they finish on time? On budget? Would you hire them again? What went wrong and how did they handle it?

A contractor who won't provide recent references or who provides references that won't answer the phone is a yellow flag. A contractor with raving referrals who says "call them anytime" is gold.

Step 5

Drive Past Prior Projects

Ask for addresses of prior completed flips in Texas — specifically ones they rehabbed within the last year. Drive by. Does the workmanship look solid from the street? Does the curb appeal hold up? Were the permits pulled and closed properly (searchable on most county websites)?

Check if permits were pulled at the address. Open or expired permits on a prior project = contractor shortcuts. Lenders and buyers will find these issues at your resale.

Step 6

Run a Texas Mechanic's Lien Check

In Texas, unpaid subs and suppliers can file a mechanic's lien against your property even if you paid the GC. Before hiring, search the county clerk's records for any liens associated with your contractor's name. Repeat at the end of the job before final payment.

A Texas mechanic's lien can cloud title and prevent you from selling or refinancing. Always use a lien waiver upon each payment.

Red Flags — Walk Away Immediately

Any one of these is enough to disqualify a contractor and find someone else:

Asks for more than 10% down before work begins (25–33% total is standard, in phases)

Won't pull permits ("I know the inspector, we'll be fine")

Can't provide a COI within 24 hours

Gives you a single lump-sum bid with no line items

Pressure to sign immediately without time to get other bids

No written contract — "we just shake hands"

References that "moved away" or "no longer use phones"

Multiple BBB complaints or unresolved court judgments

Subcontractors they can't name in advance ("I have guys")

Start date keeps getting pushed without explanation

What Must Be in Your Contractor Contract

A verbal agreement is worth nothing in a Texas dispute. Your written contract must include:

Full itemized scope of work with material specifications (brand, grade, dimensions)

Start date and completion date with liquidated damages for delays

Payment schedule tied to milestones (not calendar dates)

Lien waiver requirement at each payment disbursement

Change order process — written approval required before any extra work

Permit responsibility (who pulls, who pays)

Warranty terms (typically 1 year on workmanship)

Subcontractor approval clause (you must approve all subs)

Right to audit materials invoices

Dispute resolution process (arbitration vs. litigation)

Termination clause with cure period

Typical 5-Draw Rehab Payment Schedule

Tie every payment to completed work — never to time. Never pay upfront for all materials.

Project Kickoff & DemolitionSigned contract, permit applications submitted, demo complete and inspected

10%

Rough Work Inspections PassedFraming, plumbing rough-in, electrical rough-in, HVAC rough-in — all inspected and passed

25%

Drywall, Insulation & MEP FinishedDrywall hung and taped, insulation complete, mechanical/electrical/plumbing finish work done

25%

Finishes InstalledFlooring, paint, cabinets, countertops, fixtures, appliances — property nearly complete and walkable

25%

Final Inspection Passed & Punch List CompleteAll permits closed, certificate of occupancy issued, punch list items resolved, lien waivers received

15%

Ready to Fund the Rehab? We Are.

Once you have your contractor and scope of work, we can fund your hard money loan in as little as 7–10 days. Submit the deal — we'll have a term sheet back to you in 24 hours.

Get Hard Money Funding →

Flip Execution

How to Vet Contractors for Fix & Flip Projects in Texas:
The Process That Protects Your Profit

Bad contractors are the #1 reason Texas flippers lose money. Blown budgets, missed timelines, shoddy work, and outright theft all happen regularly — and they're almost entirely preventable with the right vetting process. After thousands of Texas fix-and-flip loans, we've seen what separates the investors who consistently close on schedule from those who get burned. Here's the exact framework.

The 7-Step Contractor Vetting Process

Verify Texas Contractor License & Insurance Before Anything Else

Texas doesn't require a general contractor license at the state level, but electricians, plumbers, and HVAC contractors must be licensed — verify every trade sub. Require a Certificate of Insurance for general liability (minimum $1M) and workers comp. An uninsured contractor working on your flip means you're liable if someone gets hurt. Call the insurance company directly to confirm the policy is active.

Non-negotiableLicense + active COI before first conversation about price

Get 3 Bids — and Question the Outlier in Both Directions

Three bids on every project. The lowest bid almost always means the contractor doesn't understand the scope, will cut corners, or will come back for change orders. The highest bid isn't automatically better quality — it may just be a contractor who doesn't want the job. The middle bid with the clearest scope of work wins on most projects.

Red flagLow bid 30%+ below others — something is wrong

Check References — Specifically Investors, Not Homeowners

Ask for 3 references from other real estate investors, not homeowners. Homeowners have different expectations and timelines. An investor who has used the contractor on 3–4 flips can tell you: Did they hit the timeline? Did the budget hold? Did they show up every day? Would they use them again? Call references. Actually call them.

Ask directly"Did they finish on time and on budget?"

Walk a Current Job Site Before Signing

Visit a project the contractor is actively working on. You'll see how they organize their crew, how they handle materials, how clean the site is, and whether the pace of work matches your timeline expectations. A contractor with a chaotic job site will bring that chaos to your project. A tight operation runs tight projects.

Tells you everythingOrganized site = organized project

Require a Line-Item Scope of Work — Not a Lump Sum

Never sign a lump-sum contract with vague scope ("renovation as discussed" or "update kitchen"). Every line item must be specified: square footage, material specifications, brand, model number where applicable. A detailed SOW eliminates "that wasn't included" change order arguments and gives you something to verify draws against.

RequiredLine items let you verify what was done before releasing draws

Structure the Payment Schedule Around Completed Milestones

Never pay more than 10–15% upfront. Tie every subsequent payment to a verified completed milestone — not to a timeline or a promise. A contractor who requires 50% upfront is either desperate for cash (danger) or planning to front-load your project to fund another. Your hard money lender will release draws based on inspections; align your GC payment schedule to match.

RuleMax 10–15% mobilization; rest in milestone draws

Build a Texas Mechanic's Lien Waiver Into Every Draw

Texas has strong mechanic's lien laws — a subcontractor your GC didn't pay can file a lien on your property even if you paid the GC in full. Require lien waivers (conditional and unconditional) from the GC and all major subs at every draw. This is standard practice for institutional investors and should be standard for yours too.

TX-specificMechanic's lien waivers at every draw — non-negotiable

Red Flags That Should End the Conversation Immediately

Wants Large Upfront Payment

Any request for 30–50% upfront before work begins is a danger sign. Reputable contractors have supplier relationships and don't need your capital to fund materials for a $40K rehab.

No Written Contract

"We can work on a handshake" means you have zero legal protection when something goes wrong. Always. Always a written contract with scope, price, timeline, and payment schedule.

No Physical Address

A contractor with only a cell phone number and no business address, website, or permanent presence is high-risk. If they disappear with your money, you have no way to find them.

Vague or Missing Insurance

"I have insurance" is not a Certificate of Insurance. Require the actual COI with your name as additional insured on the GL policy. If they stall, they're uninsured.

References Won't Answer or Are Evasive

A contractor's references should be eager to talk. If calls go unanswered or references give vague non-answers, that's information — the contractor cherry-picked the least-unhappy clients.

Changes Scope Mid-Job Without Written Change Orders

Every change to scope, price, or timeline must be in writing before work proceeds. Verbal change orders become he-said-she-said disputes that contractors usually win because they have more time to fight than you do.

Standard Draw Schedule for Texas Fix-and-Flip Rehabs

Draw #	Milestone Trigger	% of Budget	Lender Inspection
Mobilization	Contract signed, materials ordered, dumpster delivered, demo started	10–15%	Not required
Draw 1 — Rough	Demo complete, framing done, rough plumbing/electrical/HVAC roughed in	25–30%	Required — inspector confirms rough work
Draw 2 — Drywall	Insulation installed, drywall hung and taped, passed rough inspections	20%	Required — inspector walks
Draw 3 — Finishes	Cabinets, flooring, tile, trim, interior doors, fixtures installed	20%	Required — lien waivers collected
Final Draw	Punch list complete, CO issued (if required), property show-ready	10–15%	Required — final walkthrough with investor

Every Texas Rehab Contract Must Include

Legal names of contractor entity and owner(s) — not just a DBA

Line-item scope with specifications (brand, model, dimensions)

Total contract price and detailed payment schedule tied to milestones

Start date and substantial completion date with penalties for delay

Change order process — written authorization required before changes begin

Requirement for lien waivers from GC and all subs at each draw

Insurance requirements — GL and workers comp minimum coverage amounts

Dispute resolution clause — mediation before litigation

Contract Clauses That Favor the Contractor (Avoid These)

Cost-plus contracts with no cap — your budget is unlimited by design

Arbitration-only clauses that limit your legal options if things go wrong

Time-and-materials billing with no defined ceiling on either

Contractor right to substitute materials without your written approval

No completion date — "when work is done" is not a schedule

Contractor retains all unused materials — you paid for them; they're yours

Automatic payment triggers on dates rather than verified milestones

Waiver of your right to inspect work before releasing draws

Ready to Fund Your Texas Fix & Flip? We've Seen Every Scenario.

We don't just lend — we've been on job sites across Texas. We know how rehabs go sideways and we structure our draw process to protect both you and us. If you have a deal and a solid contractor, bring us both — we'll tell you within 24 hours if the numbers work and what we can fund.

Submit Your Flip Deal →

Post-Rehab Tax Strategy

You Financed the Rehab With Hard Money —
Cost Segregation Is How You Depreciate It Right

Once a hard-money-funded rehab is refinanced into a long-term rental, the entire renovation becomes part of the property's depreciable basis. A cost segregation study identifies which pieces of that basis don't have to sit on the default 27.5-year residential rental schedule — and for an investor coming out of a heavy renovation, that basis is often larger than a normal purchase would produce.

27.5 Yr

Default Residential Schedule

5 / 7 / 15 Yr

Reclassified Components

Engineered

Study, Not a Guess

CPA-Led

We Don't Give Tax Advice

A residential rental building depreciates straight-line over 27.5 years by default. But not everything in that building is "the building" for tax purposes — carpet and vinyl flooring, certain cabinetry and countertops, appliances, dedicated electrical for specific fixtures, fencing, and site work like driveways and landscaping can often be broken out into 5-, 7-, or 15-year property classes instead. An engineered cost segregation study, performed by a qualified firm rather than a rough percentage guess, itemizes exactly which components qualify and documents the allocation in case of an IRS inquiry.

Why a Renovated Property Is a Strong Candidate

Larger Reclassifiable Basis

A full gut rehab replaces exactly the components (flooring, fixtures, cabinetry) that segregate out fastest

Documented Costs Already Exist

Your draw schedule and contractor invoices from the rehab are the paper trail a cost seg study needs

Bonus Depreciation Interaction

Reclassified short-life components may also qualify for bonus depreciation — the applicable percentage has changed several times in recent years, so confirm the current rate for your placed-in-service date with your CPA

Recapture on Eventual Sale

Accelerated depreciation is recaptured at sale — a real cost that has to be weighed against the upfront benefit

Worth Discussing With Your CPA

You refinanced a hard-money rehab into a DSCR or conventional long-term rental loan and plan to hold for several years

The rehab basis is substantial enough that a study's fee is small relative to the projected tax benefit

You have taxable income the accelerated deductions can actually offset, or qualify as a real estate professional

Your contractor invoices and draw records are organized enough to support a study

Talk to Your CPA First

You're planning to sell within a year or two — depreciation recapture can erase much of the near-term benefit

Passive activity loss limits may restrict how much of the deduction you can actually use this year

The property is small enough that a rule-of-thumb allocation may cost more in study fees than it saves

You haven't decided yet whether you're holding or flipping — that decision should come before the study, not after

Our Role vs. Your CPA's Role

We finance the acquisition and rehab; a cost segregation firm and your CPA handle what happens on your tax return once you've refinanced into a hold. We're not a substitute for either — but if you're planning a BRRRR exit and want your rehab documentation structured in a way that makes a future cost seg study easier, mention it when we're setting up your draw schedule.

Planning to Refinance Your Rehab Into a Rental?

Let's talk about the hard money side of a BRRRR — the tax strategy is a conversation for your CPA once you've refinanced.

Get Your Hard Money Quote →

Foreclosure Investing

Buying at the Courthouse Steps in Texas:
The Complete Guide to Foreclosure Auctions

Texas foreclosure auctions — held on the first Tuesday of every month at county courthouses — are where experienced investors consistently buy properties at 65–80% of market value. It's the most competitive deal-sourcing channel in the state, but also the least forgiving. You need cash (or committed hard money), title knowledge, and discipline on your maximum bid. Here's how to do it right.

How Texas Foreclosure Auctions Work

Texas is a non-judicial foreclosure state — no court approval required. The entire process from first missed payment to auction can happen in as little as 60 days:

Default & Notice

Borrower misses 1–3 payments. Lender sends Notice of Default. Texas law requires a 20-day cure period.

Notice of Sale

Filed at county clerk at least 21 days before auction. Posted at courthouse. Published in county newspaper.

Auction Day

First Tuesday of month, 10 AM–4 PM at courthouse. Trustee reads the deed of trust, opens bidding. Cash or cashier's check required same day.

Winning Bid

Highest bidder above the opening bid (set by lender) wins. Trustee's deed issued same day or within days. Title passes immediately — no redemption period in Texas.

Take Possession

Occupants must vacate. If occupied, you must file eviction (JP court). Texas courts move quickly — typically 30–45 days to possession if contested.

What to Do Before Every Auction

Pull the Notice of Trustee Sale from the county clerk 3+ weeks before the auction date

Run a title search on every property you're considering — subordinate liens survive the foreclosure if not extinguished by the auction

Drive the property, photograph the exterior. Many are occupied — don't trespass, but assess condition from the street and any visible areas

Research tax status: delinquent property taxes are a super-priority lien that survive foreclosure and become your obligation at purchase

Pull recent sold comps within 1 mile, same SF/bed/bath range. Set your MAX bid at (ARV × 70%) − estimated rehab. Do not exceed it at auction.

Have your hard money lender pre-committed — most county auctions require cashier's check or cash same day. Pre-arrange your funding structure before you bid.

Attend several auctions before bidding — watch how the process runs, how bidding escalates, and what the winning investors actually pay

Risks That Can Destroy Your Profit

IRS tax liens survive first-lien foreclosure — IRS has 120-day right of redemption. Always check for federal tax liens before bidding.

HOA super-priority liens in some Texas developments can survive the foreclosure — verify with the HOA and title search

You buy as-is, sight unseen — structural problems, foundation issues, or environmental contamination become yours the moment you win

Occupied properties: previous owner or tenant may resist eviction. Budget 45–90 days and $2–5K in legal fees as a worst-case scenario

Auction fever: competitive bidding in the room can push prices past your max. Having a hard number and not exceeding it is the discipline that separates profitable investors from ones who get burned

Opening bid set by lender may already be at or above market value — many auctions result in the lender buying back the property (REO) because no bidder beats the opening

Texas County Auction Resources

Dallas County

dallascounty.org

Largest volume in the state. Auctions held at George Allen Courts Building. 500–1,000+ notices filed monthly across all price points.

Harris County (Houston)

hctx.net

Auctions at 301 Fanin St. Diverse inventory — inner-loop teardowns to suburban ranches. High investor competition on desirable inner-loop properties.

Tarrant County (Fort Worth)

tarrantcounty.com

Strong value-add inventory in Eastside, Polytechnic, Riverside neighborhoods. Lower competition than Dallas — better margins available for prepared buyers.

Travis County (Austin)

traviscountytx.gov

Lower volume due to fewer distressed properties in Austin's high-equity market. When deals appear, competition is fierce — preparation is essential.

Bexar County (San Antonio)

bexar.org

Consistent volume across price points. Military relocation market creates unique inventory patterns. Good mix of Southside, Eastside, and suburban properties.

Secondary TX Markets

county clerk websites

Lubbock, Amarillo, El Paso, Waco, Tyler — less competition, better margins for investors willing to drive. Same process, smaller bidder pool.

The Courthouse Steps Math: Two Real Examples

Example 1 — Fort Worth Eastside (Win)

ARV (confirmed comps)$225,000

Estimated rehab$38,000

Max bid (70% rule)$119,500

Actual winning bid$107,000

Opening bid (lender)$94,000

All-in cost (incl. carry)$158,400

Net profit at ARV$66,600

Example 2 — Dallas Suburb (Overbid)

ARV (confirmed comps)$380,000

Estimated rehab$55,000

Max bid (70% rule)$211,000

Auction fever — paid$258,000

All-in cost (incl. carry)$330,500

Net profit at ARV$49,500 loss

Hard Money + Courthouse Steps: How to Fund Same-Day

Most counties require payment within hours of winning a bid — you can't go get financing after you win. The investors who consistently win at auction have their funding pre-arranged. Here's how to structure it:

Pre-Approved Line of Credit

Work with a hard money lender to establish a pre-approved acquisition line before auction season. They review your track record, set a max, and you can bid with confidence knowing funds are committed.

Cashier's Check + Same-Day Wire

Bring a large cashier's check to the auction (refundable if you don't win). Win the bid → your hard money lender wires the balance to the trustee within hours. Requires a very tight lender relationship.

Cash Buyers (Then Refi)

The most common approach: buy with cash at auction, immediately submit to HML for a refinance. Most hard money lenders will refi an auction purchase within 3–5 business days, returning your capital.

Won at Auction? Need a Hard Money Refi in 3 Days?

We work with active courthouse steps investors across Texas. If you've just won an auction purchase and need to refinance your cash out quickly, we can typically close a hard money refi in 3–5 business days. Bring your trustee's deed and your rehab scope — we'll move fast.

Get Funded Fast →

Cross-Collateralized Portfolio Hard Money

Cross-Collateralized Portfolio Loans:
One Hard Money Loan Against Multiple Properties

Investors sitting on equity across several properties often can't access it efficiently one house at a time — appraisal costs, closing costs, and underwriting delays stack up fast. Cross-collateralization lets us secure a single hard money loan against multiple properties at once, unlocking combined equity in one transaction instead of several.

2-10+

Properties Per Loan

65-70%

Blended LTV

1 Closing

Instead of Several

7-14 Days

Typical Close

A cross-collateralized loan uses two or more properties together as security for a single note, with the combined equity across the portfolio determining the loan amount rather than any one property's value alone. For an investor with several rentals, flips in progress, or a mix of both, this means accessing capital tied up across a portfolio without refinancing or selling any single asset — and without the cost and time of running separate loan transactions on each one.

This structure is especially useful for investors funding a new acquisition or a batch of rehab projects using equity already built up elsewhere. Instead of waiting on a slow cash-out refinance on a stabilized rental to fund the next deal, a cross-collateralized bridge loan can pull that equity forward immediately, secured jointly by the stabilized property and the new acquisition or rehab project.

Common Uses for Cross-Collateralized Financing

Portfolio Acquisition

Buying multiple properties in one transaction, secured jointly across the batch

Equity-Funded Rehab

Using equity in existing rentals to fund rehab capital on a new flip or BRRRR project

Partner Buyouts

Leveraging a multi-property portfolio to buy out a partner without selling assets

Bridge to Refinance

Short-term portfolio-secured bridge ahead of a longer-term DSCR refinance

Good Fit

Multiple properties with meaningful combined equity but limited individual cash-out room

Clear title on all pledged properties with no unresolved liens

A defined exit — sale of one or more properties, or refinance to term debt

Comfort releasing individual properties from the note as they're sold or refinanced ("partial release" terms)

Things to Plan For

All cross-collateralized properties are exposed if the loan goes into default — not just one

Partial release terms (removing one property from the note) must be negotiated upfront, not after closing

Title work and appraisals are required on every pledged property, which adds diligence time

Structured Around Your Exit, Not a One-Size Formula

Every cross-collateralized loan we structure includes clear partial-release terms from day one — you know exactly what it takes to release any individual property from the note as you sell or refinance it, rather than discovering the terms after you're already in the deal. That clarity is what makes this structure genuinely useful for active investors instead of just a way to pile risk onto multiple properties at once.

Sitting on Equity Across Multiple Texas Properties?

Send us your portfolio — addresses, approximate values, and what you're trying to fund. We'll tell you what's possible.

Submit Your Portfolio Request →

Acquisition Strategy

Financing a Deed-in-Lieu or Pre-Foreclosure Acquisition

Note: this is about buying a distressed property before or through a deed-in-lieu transfer — not what happens if your own hard money loan runs into trouble (see our loan workout guide for that).

A homeowner heading toward foreclosure sometimes negotiates a deed-in-lieu of foreclosure directly with their lender — voluntarily transferring the deed to avoid the foreclosure process entirely. For an investor, the window right before that transfer closes (or right after, once the lender-owned property lists) is often the fastest, least-competitive way to acquire a distressed asset — but it comes with a compressed timeline conventional financing almost never fits.

Why Speed Matters More Here Than in a Normal Purchase

A homeowner negotiating a deed-in-lieu is usually racing a foreclosure sale date, and a lender processing one wants it resolved fast — neither side has patience for a 45-day conventional underwriting cycle. Hard money financing closes in days, not weeks, which is frequently the difference between an investor actually landing the deal and watching it go to a cash buyer instead.

What to Expect With These Deals

Title Work Matters More

Confirm no junior liens or unresolved claims survive the transfer before closing

As-Is Condition

These properties are rarely move-in ready — budget rehab into the acquisition financing, not as an afterthought

Compressed Timeline

Lender/seller deadlines are real — asset-based underwriting is what makes the timeline achievable

We underwrite these the same way we underwrite any distressed acquisition: as-is value, a real rehab scope, and a credible exit — whether that's a resale, a refinance into a rental hold, or a wholesale assignment. The deed-in-lieu or pre-foreclosure status itself isn't a red flag to us; it's simply why the deal is available at a discount in the first place.

Racing a Foreclosure or Deed-in-Lieu Deadline?

Tell us the timeline — we structure closings around real deadlines, not a standard 45-day underwriting clock.

Talk to a Loan Officer →

Cash Buyer Strategy

Delayed Financing: Turn Your Cash Purchase Back Into Cash

Paying all-cash wins off-market and foreclosure deals — no financing contingency, no appraisal delay, closes in days. The tradeoff is your capital sits locked in one property. Delayed financing gets it back out fast, before you've even started a rehab.

This is a different problem than our no-seasoning refinance program, which is about pulling out new value created by a rehab. Delayed financing is about a property you bought for cash and have done little or nothing to — you simply want your original purchase capital back so you can use it on the next deal, rather than having one property tie up six figures indefinitely. Conventional and conforming lenders that offer a "delayed financing exception" typically cap the loan at your actual documented purchase price and require a full six-month wait with no exceptions — fine for a buy-and-hold investor with no urgency, useless for anyone trying to keep capital moving.

How We Structure It Differently

We can fund a cash-out refinance shortly after closing — often inside 30-60 days rather than six months — based on the property's current value, not just your purchase receipt, provided the purchase and any work performed are well documented (settlement statement, proof of funds source, receipts for any repairs). This is especially useful for investors who beat out financed buyers on a deal specifically because they paid cash, and now want that advantage back in hand for the next opportunity without waiting out a conventional lender's seasoning clock.

Day 0

Cash Purchase Closes

You win the deal with an all-cash, contingency-free offer.

Day 1-30

Documentation Gathered

Settlement statement, proof of funds source, any repair receipts assembled.

Day 30-45

Refinance Underwritten

Current value verified, loan sized against it — not capped at your purchase price.

Day 45-60

Capital Returned

Cash-out proceeds land back in your account, ready for the next acquisition.

Conventional "Delayed Financing Exception"

Six-month minimum wait, no exceptions

Loan amount typically capped at original purchase price

Full income/DTI underwriting on the borrower

Our Delayed Financing Program

Funded in as little as 30-60 days after purchase

Sized against current value, not just what you paid

Underwritten primarily on the asset and the exit, not W-2 income

Bought for Cash and Want It Back Out?

Send us the settlement statement and current condition of the property — we'll tell you how fast we can get your capital working again.

Start Your Application

Exit Timeline & Days-on-Market Risk

Your Flip Model Assumed a 30-Day Sale.
What Happens If It Sits for 90?

Most fix-and-flip underwriting focuses on rehab cost and ARV — and skips the variable that quietly wrecks more deals than a bad contractor bid: how long the finished property actually sits on the market before it sells. Every extra day is carrying cost you didn't model.

A flip's profit isn't locked in when you list it — it's locked in when it closes. Between "finished and photographed" and "funds wired at title," every day on market quietly erodes your margin: interest keeps accruing on your hard money balance, property taxes and insurance keep running, utilities stay on for showings, and if the market shifts while you wait, your eventual sale price can slip too. Investors who stress-test days-on-market (DOM) risk before they buy the property make dramatically better decisions than those who only stress-test the rehab budget.

What a Day on Market Actually Costs You

Illustrative Daily Carry Cost — $220K Hard Money Balance

Interest (10.5% annualized on drawn balance)~$63/day

Property taxes (Texas ~2% effective rate, prorated)~$12/day

Insurance (vacant/builder's risk policy, prorated)~$5/day

Utilities, lawn care, HOA (if applicable)~$4/day

Approximate total daily carry~$84/day

Run that across a realistic range of outcomes, not just the best case: at ~$84/day, an extra 60 days on market beyond your original estimate is roughly $5,000 in additional carrying cost alone — before accounting for a second price reduction or a longer loan extension fee. This is why experienced flippers build a DOM cushion into their offer price rather than their exit price.

30 Days

Best Case

Priced right, staged well, strong local demand. Original underwriting holds; full profit margin realized.

60–90 Days

Realistic Cushion

Typical for a market shift, an overpriced first list, or a slower season. Budget this into your numbers upfront, not after the fact.

90+ Days

Stress Case

Loan extension fees (commonly 0.5–1 point per extension period), a price cut, or a pivot to a rental exit likely become necessary. Know this option exists before you're forced into it.

How to Stress-Test Your DOM Risk Before You Buy

Pull actual local comp DOM data for finished, similarly priced homes — not the neighborhood average across all conditions

Model your numbers at your realistic DOM estimate PLUS 30–60 days, not just at the optimistic case

Know your loan's extension terms and fee before you close, not when you need one

Price to sell fast on the first list — a property that sits 45 days before its first price cut usually nets less than one priced right from day one

If Your Property Is Sitting Longer Than Planned

Talk to your lender early about an extension — most will work with a borrower who's not in default and is making progress, but it's easier to arrange before you're at the wire

Re-evaluate pricing against fresh comps rather than anchoring to your original ARV assumption

Consider a BRRRR pivot to a rental exit if a DSCR refinance pencils better than another price cut — see our Exit Strategies guide for the full comparison

Don't wait until the loan term is nearly up to start the extension or refinance conversation — title and appraisal work takes time on either path

Build DOM Cushion Into Your Numbers From Day One

We'll walk through your deal's carrying cost at multiple exit timelines before you commit — not just the best-case number.

Get a Term Sheet & Carry-Cost Estimate →

Double-Close & Assignment Financing

Double-Close Funding for Wholesalers:
Same-Day Back-to-Back Transactional Money

When a seller won't allow an assignment clause, or you'd rather not disclose your assignment fee to the end buyer, a double-close is the workaround — you actually take title, then resell same-day or within days. That requires real transactional funding to close the A-to-B leg, even if only for hours.

Same-Day

A-to-B, B-to-C Closings

100%

Of Purchase Price Funded

Low Flat Fee

Not a Standard Rate/Term Loan

No Credit Pull

Deal-Based, Not Borrower-Based

Transactional funding for a double-close is fundamentally different from a normal hard money loan — you're not holding the property for months, you're funding a same-day (or same-week) A-to-B purchase specifically so the B-to-C sale to your end buyer can close right behind it. Because the loan is fully collateralized by a contract already in place to resell, pricing is usually a flat fee rather than an annualized rate, and underwriting focuses on the deal itself, not your personal credit.

Why Wholesalers Use Double-Close Instead of Assignment

When Double-Close Makes Sense

The seller's contract or the property type (REO, some short sales) prohibits assignment of contract entirely

You'd rather keep your assignment fee private from the end buyer rather than disclosing it on an assignment addendum

Title company or lender on the B-side requires the wholesaler to actually be on title, not just an assignor

You have a firm, funded end buyer already lined up — this isn't speculative financing on an unsold deal

What We Need to See

Executed A-side purchase contract at your acquisition price

Executed B-side resale contract (or a proof-of-funds/pre-approval from your end buyer) at your resale price

A closing timeline where the A and B closings are realistically scheduled back-to-back, not weeks apart

Title company willing and set up to handle a double-close on the same day or in short sequence

Fast Because the Deal Does the Underwriting

Because the funding only needs to bridge hours or days between two already-contracted closings, we can typically confirm terms same-day once we see both contracts. This isn't a program for holding property or renovating — it's specifically for wholesalers who need the A-side capital in place to make the B-side sale happen cleanly.

Have a Double-Close Deal Lined Up?

Send us both contracts and your closing dates. We'll confirm funding same-day in most cases.

Get Your Double-Close Funded →

Deal Capital Gap Funding

Earnest Money & Gap Funding —
Closing the Small-Dollar Hole That Kills a Deal

A hard money loan solves the big number — the purchase and the rehab. It's the small number that quietly stalls investors: a $2,500–$10,000 earnest money deposit tied up in one contract while another opportunity needs the same cash, or the sliver of equity between an 85% LTC hard money loan and the total cash-to-close a borrower doesn't have sitting free. Gap funding is a short-term facility built specifically for that small, fast-moving hole.

$1K–$25K

Typical Facility Size

Days, Not Weeks

Turn Time

Contract or Lien

Secured By

Short-Term

Repaid at Closing/Assignment

Wholesalers run into this constantly: real capital moves are tied up as refundable-in-theory earnest money across two or three contracts at once, and a strong assignment opportunity shows up before the first deal has closed. Buy-and-hold and flip investors hit a version of the same problem — the hard money loan covers the bulk of acquisition and construction, but the remaining cash-to-close, closing costs, or a reserve requirement is a small enough number that it shouldn't be the reason a good deal doesn't happen.

How It's Structured

Gap funding isn't a substitute for the primary hard money loan — it layers alongside it. Depending on the deal, it can be secured by the purchase contract or assignment agreement itself (wholesale EMD), by a short-dated second lien position behind the primary loan, or cross-collateralized against equity in another property the borrower already holds free and clear or with room. Because the dollar amounts are small relative to a typical hard money loan and the hold period is measured in days or weeks, pricing reflects that short duration and the administrative cost of a fast, small facility — not a discount, but not scaled like a 12-month construction loan either.

Wholesale EMD

Fund the earnest money deposit on a contract you intend to assign, freeing your own cash for the next one

Cash-to-Close Gap

Cover the difference between your hard money loan's LTC and the total funds needed to close

Capital Recycling

Run multiple contracts simultaneously without every deal competing for the same pool of personal cash

Reserve Shortfall

Meet a lender's interest-reserve or contingency-reserve requirement without tying up additional cash

Good Fit

You have a signed contract or assignment agreement and a clear, short path to closing or reassignment

The gap is genuinely small relative to the deal — this isn't meant to replace real down-payment equity

You have a track record (or a strong first deal) showing you close what you put under contract

You already have the primary hard money loan in place or lined up for the acquisition/construction

Not a Fit

You're trying to fund the entire down payment with no equity of your own in the deal

There's no contract, assignment, or collateral to secure the advance against

The deal's timeline is open-ended rather than a short, defined window to closing or assignment

Have a Deal Held Up by a Small Amount of Cash?

Tell us the contract, the timeline, and the number — we'll tell you fast whether a gap facility makes sense alongside your hard money loan.

Get Your Hard Money Quote →

Flip Exit Planning

Fix-and-Flip Exit Strategies:
Sell, Refi, or Rent — Which Makes You More Money?

Your exit strategy isn't a decision you make at the end of a rehab — it's baked into your buy price, rehab scope, and loan term from day one. Texas flippers who plan their exit before signing the contract consistently outperform those who figure it out at the end.

Retail Sale (MLS)

Investor / Wholesale Sale

BRRRR (Refi + Hold)

Seller Financing

Retail Sale — Pros

Highest gross sale price — you capture full market value from an end buyer

MLS listing creates competitive bidding in Texas's active markets

Clean transaction — cash out entirely, no ongoing obligations

Best for fully rehabbed properties that show beautifully

1031 exchange option if you roll proceeds into investment property

Retail Sale — Cons

6% commissions + title + prorations: 7–8% of gross sale price gone immediately

30–60 days on market before closing — carry interest keeps accumulating

Subject to buyer financing — deal can fall apart at appraisal or inspection

Full cosmetic finish required — no shortcuts with a retail buyer

Short-term capital gains if held under 12 months (ordinary income rates)

92–96%

% of ARV Recovered

45–75 days

Typical Time to Close

Max Profit

Best Use Case

Investor Sale — Pros

No MLS commissions — save 3–6% selling direct

Fast close: 7–14 days with cash or hard money buyer

Works even if rehab is not fully complete — sell as-is to investors

No appraisal risk, no inspection contingencies, no emotional buyers

Good option when your HML term is running short and you need out fast

Investor Sale — Cons

Price discount: investors buy at 70–80% of ARV — you leave money on the table

Need investor relationships — this is a relationship-based sale channel

Hard to negotiate from a position of visible distress or timeline pressure

Not every neighborhood has active investor buyer demand

75–85%

% of ARV Recovered

7–21 days

Time to Close

Best For

Speed & Certainty

BRRRR Refi — Pros

Pull equity out tax-free via cash-out refi — debt proceeds are not income

Build a rental portfolio without deploying new capital each time

Property cash flows ongoing — passive income replaces one-time flip profit

DSCR loan on the refi — no income docs, hold in LLC, fully scalable

Long-term appreciation in Texas markets compounds equity over time

BRRRR Refi — Cons

HML must be paid off at refi — requires either cash reserves or full equity

Only works if ARV supports DSCR loan AND generates positive monthly cash flow

Additional 15–30 days carry after rehab complete for refi to close

Cash-out refi capped at 75–80% LTV — you may not pull all your equity

Landlording is a different skillset — budget for property management

75–80%

LTV on Cash-Out Refi

30–45 days

From Rehab to Refi Close

Best For

Portfolio Builders

Seller Financing — Pros

You become the bank — collect monthly principal + interest at your rate

Can often command above-market price for providing financing access

Installment sale treatment — spread capital gains recognition over years

Interest income at 7–10% plus ongoing principal paydown

Attractive to buyers who can't qualify conventional but can afford payments

Seller Financing — Cons

You must pay off the HML at closing — requires full equity in the deal

Buyer default risk — even with non-judicial foreclosure, it takes time

Capital tied up in a single note — less liquidity than a cash sale

Requires real estate attorney for the note and deed of trust documentation

Not suitable for every buyer or every market — needs the right buyer profile

Full ARV+

Potential Sale Price

Quoted on your deal

Typical Note Rate

Best For

Tax Efficiency

The Texas Flip Listing Playbook (Retail Exit)

If you're doing a retail exit, follow the steps Texas's top flippers use to minimize DOM and maximize sale price:

1–2 Weeks Before Listing

Pre-Listing Prep

Professional photography — not iPhone shots
3D Matterport tour reduces unserious showings
Clean gutters, power wash driveway and walkways
Stage living room, master, and kitchen at minimum
Pre-listing inspection — eliminate surprises at contract

Days 1–7 on Market

Launch Week

Price at market, not aspirational — DOM kills value
Go live Thursday for maximum weekend showing traffic
Open house both Saturday and Sunday of launch weekend
Set an offer deadline Sunday if you get strong traffic
Never list Friday afternoon or Saturday — you lose a week

Days 8–21 on Market

If Not Under Contract

Price reduction by day 10 — don't wait, carrying is expensive
Pull fresh comps immediately — are you priced right?
Offer buyer's agent bonus ($2–5K) to drive more showings
Diagnose the showing issue: smell, staging, lighting, layout
Consider switching agents if marketing is passive

True Selling Cost Stack: What Texas Flippers Actually Net

Cost Item	Typical Range	On a $350K Sale
Buyer's Agent Commission	2.5–3%	$8,750
Listing Agent Commission	2.5–3%	$8,750
Title Insurance (seller pays in TX)	0.5–0.8%	$2,100
Escrow / Closing Fees	$800–1,500	$1,200
Property Tax Proration	Varies by close date	$1,800 avg
Home Warranty (often buyer request)	$400–600	$500
Misc (touch-up repairs, staging)	$500–3,000	$1,500
TOTAL SELLING COSTS	~7–8% of sale price	~$24,600

Know Your Exit Before You Buy — We Help You Plan It.

Our hard money loan terms are structured around your exit strategy. Retail exit at 6 months? We have that covered. BRRRR with a DSCR lender refi letter in hand? We can extend. Submit your deal and let's build the right loan structure from day one — not after closing.

Get My Loan Structured →

First-Time Investor Guide

Your First Fix & Flip in Texas:
A Step-by-Step Playbook

Most first-time investors fail because they don't have a roadmap — not because they lack capital. Here's exactly how to do your first deal from contract to closing.

Find the Deal (Before You Have Money)

Start looking before you have financing. Drive for dollars, MLS distressed listings, probate, wholesalers. In Texas look at Harris, Tarrant, and Dallas counties — highest volume of distressed single-family.

Rule of thumb: ARV × 70% − Rehab = Max Purchase Price

Run Your Numbers Conservatively

Get 3 contractor bids before signing anything. Add 15% contingency on top. Most beginners underestimate rehab by 20–30%. Your profit is made at purchase, not at sale.

If it doesn't work at your worst-case estimate, walk away

Get Pre-Qualified for Hard Money

Call us before going under contract. 24–48 hour pre-qual. We'll look at the deal, your exit plan, and down payment availability — not your credit score or W-2s.

Hard money closes in 5–10 days. Banks take 30–60. Sellers love speed.

Sign & Fund — We Close Fast

We lend up to 90% LTV on purchase. Rehab draws released in stages as work is completed. You maintain control of the rehab process — no micromanagement.

We've closed in as few as 3 business days in Texas

Manage the Rehab

Stick to the scope. Change orders kill profits. Use licensed Texas contractors — required for permits. Document everything with photos for draw requests.

Target 3–4 months from close to list. Every extra month = one more interest payment

Exit: Sell or Refi

List at or slightly below market to sell in under 30 days. OR refinance into a 30-year DSCR loan and keep it as a rental. Either way, we're paid off and you've done your first deal.

BRRRR strategy: Buy, Rehab, Rent, Refi, Repeat — recycle your capital

5 Mistakes That Kill First-Time Fix & Flip Deals

✗

Overestimating ARVPull 6-month comps in a 1/2 mile radius, same bed/bath. Not Zillow — actual closed sales.

✗

Underestimating RehabContractors lowball to get the job. Get 3 bids and add 15% contingency — every time.

✗

Ignoring Holding CostsHard money at 12%, property taxes, insurance, utilities = $3–5K/month. Budget 6 months minimum.

✗

Wrong MarketDon't flip in a neighborhood where ARV is $150K. You need at least $200K ARV to make margins work.

✗

No Contractor RelationshipFinding a contractor mid-project doubles your timeline. Have 2–3 before you go under contract.

Sample First Flip — DFW Market

What the numbers actually look like on a typical Texas entry-level flip

Purchase Price$135,000

Hard Money Loan (85% LTV)$114,750

Your Down Payment$20,250

Rehab Cost$28,000

Holding Costs (4 months)$8,500

Closing Costs (buy + sell)$6,200

After Repair Value (ARV)$215,000

Net Profit+$37,300

Ready to Do Your First Texas Flip?

Get pre-qualified in 24 hours. No income docs, no W-2s, no appraisal required to get started.

Start Your Pre-Qualification →

Fix-to-Rent / BRRRR Strategy

The Fix-to-Rent Bridge: Hard Money Into a Cash-Flowing Rental

Not every distressed property is a flip. The fix-to-rent strategy — buy distressed, renovate with hard money, then refinance into a long-term DSCR rental loan — lets Texas investors build a portfolio without tying up all their cash in each deal. Here's exactly how the bridge works.

The fix-to-rent (also called BRRRR — Buy, Rehab, Rent, Refinance, Repeat) strategy solves a real problem for investors who want to build a rental portfolio: buying distressed properties in cash-only condition, then holding them long-term, without needing fresh capital for every single acquisition. The mechanics are straightforward, but the financing has to be structured correctly at each phase or the whole strategy falls apart at the refinance step.

The Three-Phase Bridge

Phase 1

Hard Money Acquisition + Rehab

We fund the purchase and renovation budget together, typically up to 90% of purchase price plus 100% of rehab costs, capped at a percentage of after-repair value (ARV). Interest-only, 6-12 month term.

Phase 2

Renovation & Lease-Up

Complete the rehab, then place a tenant. This is the step investors most often underestimate — lenders want to see an actual signed lease, not a rent estimate, before refinancing.

Phase 3

DSCR Refinance Exit

Once leased, refinance the hard money bridge into a 30-year DSCR rental loan sized off the new appraised value and in-place rent — pulling most or all of your original capital back out.

Where Deals Actually Go Wrong

The single biggest failure point in fix-to-rent deals isn't the renovation — it's the seasoning requirement on the refinance. Most DSCR lenders require either a documented purchase price plus verified rehab receipts, or a minimum seasoning period (often 6 months of ownership) before they'll lend off the new, higher appraised value rather than the original purchase price. Investors who don't plan for this get stuck refinancing off their acquisition cost instead of ARV, defeating the purpose of the strategy. We coordinate the hard money bridge and the DSCR exit together specifically to avoid this — the exit lender needs to already understand the file before the refinance request lands on their desk.

The second most common issue is underestimating carrying costs during lease-up. A property that sits vacant for 60 days after renovation completion is 60 days of interest-only payments with no offsetting rent — we size rehab budgets to include a lease-up reserve so this doesn't catch borrowers off guard mid-deal.

Example: $220K Purchase, $45K Rehab, $340K ARV

Hard Money Loan (85% of $265K total cost)

$225,250

Cash Required at Close

$39,750

DSCR Refinance (75% of $340K ARV)

$255,000

Cash Returned After Refinance

$29,750

Planning a Fix-to-Rent Deal?

We fund the bridge and coordinate the DSCR exit so your refinance actually goes through at ARV. Tell us the numbers.

Get Your Fix-to-Rent Quote →

Investor Education

How Flip Profits Actually Get Taxed

A flip's profit almost never gets the long-term capital gains rate — the IRS generally treats an active flipper as running a business, not holding an investment. Understanding "dealer status" before you scale volume can change how you structure every deal that follows.

FACT 1

Ordinary Income Default

Flip profit is typically taxed as ordinary income plus self-employment tax, not capital gains — regardless of a short hold period

FACT 2

"Dealer" Classification

The IRS looks at frequency, intent, and volume — regular flippers are usually classified as dealers in real property, not investors

FACT 3

1031 Doesn't Apply

Dealer-held property (inventory, not investment) generally doesn't qualify for a 1031 exchange — see our separate 1031/bridge guide for buy-and-hold financing

STRATEGY

Entity Structuring

Many active flippers use an S-corp election to cap self-employment tax exposure on distributed profit — a conversation for your CPA, not us

Why "Flip" and "Investment Property" Are Taxed Differently

The tax code draws a line between a real estate investor (someone who buys to hold for rental income or appreciation) and a real estate dealer (someone who buys, improves, and resells as a repeated business activity — the textbook definition of flipping). A dealer's properties are treated as inventory, and inventory profit is ordinary income, not a capital gain — no preferential long-term rate no matter how long you technically held the property, and no 1031 exchange deferral, since 1031 is reserved for property held for investment or business use, not property held for resale.

What Actually Determines Dealer Status

Courts and the IRS look at the whole pattern: how many properties you've flipped and how often, whether you have a real estate license or advertise as a flipper, how much time and capital you put into rehab versus simply holding, and your stated intent at purchase. One occasional flip alongside a buy-and-hold portfolio reads very differently than ten flips a year run as a full-time operation — the second is unambiguously a dealer business.

This has real planning consequences: self-employment tax (15.3%) applies on top of ordinary income tax for a sole proprietor or partnership flipper, which is exactly why many high-volume flippers elect S-corp taxation for their flipping entity — it can let a reasonable portion of profit be taken as distributions rather than wages, reducing the self-employment tax bite. None of this is tax advice; it's context for why your CPA's entity-structuring recommendation matters as much as your financing terms. We finance the deal — get a real estate-savvy CPA in your corner before you scale volume.

Scaling Your Flip Volume?

We'll finance the deals — bring the right entity structure and CPA relationship so you keep more of what you make.

Talk to a Loan Officer →

Underwriting Guide

Flood Zones & FEMA Maps: What They Actually Mean for Your Loan

A property sitting in a FEMA Special Flood Hazard Area isn't automatically unfundable — but it changes the insurance math, the rehab budget, and sometimes the exit strategy. Here's how we actually evaluate it, rather than declining on the map alone.

STEP 1

Pull the FIRM

We check the FEMA Flood Insurance Rate Map zone designation (X, AE, VE) before anything else

STEP 2

Price Flood Coverage

NFIP or private-market flood insurance quote gets built into your carrying-cost math up front

STEP 3

Elevation Certificate

For AE/VE zones, an elevation certificate can materially change the insurance premium — worth the cost to obtain

STEP 4

Underwrite the Real Number

We size the deal against actual insurance cost, not a worst-case assumption that kills a fundable property

Why Banks Often Just Say No

Many conventional and even some hard money lenders treat any flood-zone designation as an automatic decline, because pricing the real insurance cost and rehab exposure takes more underwriting effort than a standard file. That blanket approach leaves genuinely good deals — a property in a mapped zone with a manageable, quotable flood premium — sitting unfunded next to comparable non-flood-zone properties that are actually worse investments.

What Zone Designation Actually Changes

Zone X (minimal hazard) usually requires no flood insurance at all. Zone AE (100-year floodplain, base flood elevation established) typically requires NFIP or private flood coverage as a funding condition, and an elevation certificate showing the lowest floor's height relative to base flood elevation can swing the premium dramatically — sometimes making a property in AE cheaper to insure than a lender's worst-case assumption. Zone VE (coastal high-hazard, wave action) carries the steepest premiums and the most restrictive rebuild requirements after storm damage, and factors most heavily into our as-is and after-repair value assumptions.

For a rehab or flip in a mapped zone, we also look at whether the scope of work includes flood-mitigation improvements — elevating mechanical systems, flood vents, flood-resistant materials below base flood elevation — since those can both reduce future insurance cost and strengthen the property's resale profile to the next buyer's own lender.

Property Sitting in a Mapped Flood Zone?

Send us the address and the FIRM panel — we'll price the real insurance cost and tell you if the deal still works.

Talk to a Loan Officer →

Foreclosure & REO Purchase Financing

Buying at Foreclosure Auction or REO? Cash Speed Without Using Your Own Cash

Courthouse steps auctions and bank-owned (REO) listings both demand one thing traditional financing can't deliver: speed. Hard money lets Texas investors compete like cash buyers on both.

Foreclosure and REO acquisitions are two different games with one thing in common — the sellers (trustees at auction, banks holding REO inventory) both favor buyers who can close fast and without financing contingencies. A conventional mortgage with a 30-45 day underwriting timeline simply doesn't work for either channel. That's the gap hard money fills: proof-of-funds letters that hold up, and actual closings inside a week or two when needed.

Two Very Different Acquisition Paths

Courthouse Steps

Trustee / Sheriff Sale Auctions

Full cash payment required same-day, no inspection or financing contingency, no interior access before bidding. Highest risk, highest potential discount. Texas trustee sales happen the first Tuesday of each month at county courthouses statewide.

Requires pre-approved proof of funds before bidding

Bank-Owned

REO Listings

Purchased through a licensed agent like a normal listing, but banks strongly prefer offers with proof of funds or hard money pre-approval over financed offers — and often require close in 15-21 days.

Interior access and inspection typically allowed

How We Structure Foreclosure & REO Deals

For courthouse auctions, we issue a pre-approval and proof-of-funds letter before the sale date based on your target property and maximum bid — this is what gets you into the bidding with credibility. If you win, funding closes within days since underwriting was largely completed pre-auction. Because auction properties can't be inspected inside beforehand, we typically lend more conservatively on unseen condition (lower LTV) until a post-purchase inspection confirms scope of work, at which point rehab funds can be added to the loan.

For REO purchases, the process looks more like a standard hard money purchase — you have an accepted offer, an inspection period, and a defined closing date — but compressed. We move fast specifically because REO sellers frequently give preference to, or require, buyers who can close in under three weeks.

What Makes These Deals Work

Pre-approval secured before bidding or offer submission

Realistic ARV based on comparable sales, not auction-day optimism

Rehab budget built in with contingency — auction properties are often unseen inside

Title search completed before bidding to check for liens, tax delinquency, or a right of redemption

Risks Specific to This Channel

Occupied properties (former owner or tenant still inside) — eviction adds time and cost

Junior liens or unpaid property taxes that survive the foreclosure sale

No financing contingency — if you win, you close, no exceptions

Unknown interior condition driving rehab budget overruns

Bidding at Auction or Eyeing a REO Listing?

Get pre-approved before you bid. We can typically turn proof-of-funds letters same-day.

Get Pre-Approved →

Foreign National Investor Financing

Foreign National Hard Money:
No U.S. Credit History, No Problem

International investors buying Texas real estate hit a wall at almost every conventional and even most private U.S. lenders — no Social Security number, no U.S. credit file, no domestic income documentation. Hard money financing was built for exactly this gap: we underwrite the deal and the funds, not a FICO score that doesn't exist yet.

No SSN Required

ITIN or Passport Accepted

No U.S. Credit File

Needed to Qualify

60-70%

Typical LTV

2-3 wks

Typical Close

A foreign national with substantial capital and a strong home-country financial profile still gets declined by most U.S. mortgage underwriting, simply because there's no domestic credit bureau file to score. Conventional lenders lean entirely on U.S. credit history and often require Social Security numbers or years of U.S. tax filings — barriers that have nothing to do with an investor's actual ability to repay a loan.

Hard money underwriting sidesteps this by design: the loan is secured by the Texas property itself, sized to a conservative loan-to-value against verified funds and the deal's economics. Passport identification, proof of funds (bank statements or wire confirmation), and an entity or ITIN in place of an SSN are typically sufficient — no U.S. credit pull required to get to a term sheet.

What Foreign National Borrowers Need

Straightforward to Fund

Valid passport and proof of legal entry status (visa, ITIN, or entity formation documents)

Documented proof of funds — bank statements or wire trail showing source of down payment

U.S. LLC or entity formed to hold title (common and often recommended for tax/liability reasons)

A clear exit strategy — sale, DSCR refinance, or long-term hold with a U.S. property manager

Reasonable equity position — larger down payment offsets lack of U.S. credit history

Slows Things Down

Funds sourced from jurisdictions with limited banking transparency, triggering extended AML review

No U.S. entity or ITIN in place and no plan to obtain one before closing

Unclear or undocumented source-of-funds trail

No U.S.-based point of contact or property management plan for a rental hold

From Bridge Purchase to Long-Term DSCR Rental

Many foreign national investors use hard money to move fast on a purchase — competing with cash buyers on timeline — then refinance into a DSCR loan once the property is stabilized. DSCR programs also typically don't require U.S. credit history or personal income documentation, qualifying instead on the property's rental income, making the full path from acquisition to long-term hold workable without ever needing a U.S. credit file.

Investing in Texas From Outside the U.S.?

Send us the property, your proof of funds, and your entity status. We'll tell you what you qualify for — usually within 48 hours.

Submit Your Loan Request →

Gas Station & Car Wash Hard Money

Hard Money for Gas Stations & Car Wash Real Estate

Acquiring, renovating, or repositioning a gas station, convenience store, or express car wash in Texas — a property type conventional lenders routinely decline outright over environmental liability, regardless of the deal's actual numbers.

Why This Property Type Gets Bank-Declined So Often

Underground storage tanks are the single biggest reason conventional lenders avoid gas station real estate entirely — a Phase I (and often Phase II) environmental site assessment is mandatory, tank age and leak-detection compliance vary wildly property to property, and a single finding can kill a conventional loan file for months while remediation gets sorted out. Car washes carry a lighter version of the same problem: water reclamation systems, chemical storage, and equipment condition all factor into what a bank considers "acceptable" collateral, and older facilities frequently don't clear that bar even when the real estate and location are genuinely strong.

Hard money doesn't wait on that process to close. We finance the acquisition or renovation against the real estate and location value, with environmental findings addressed as a condition of the deal rather than a reason to walk away — letting an operator actually close on a strong site while the compliance work happens on a realistic timeline.

What Qualifies

Gas station / convenience store acquisition, including tank replacement or remediation scope

Express or full-service car wash acquisition and equipment upgrade

Conversion of an existing site to a different fuel brand or car wash format

Ground lease or fee-simple acquisitions on high-traffic corridor sites

What Lenders Look At

Phase I ESA findings and, if flagged, a realistic Phase II/remediation budget and timeline

UST age, monitoring compliance, and TCEQ registration status

Traffic counts and site visibility — the real drivers of this property type's value

Exit plan to a conventional or SBA loan once environmental issues are resolved

Financing a Gas Station or Car Wash Acquisition?

Environmental findings don't have to kill your deal. Get a same-day term sheet on the real estate.

Get Your Free Quote

Common Questions

Hard Money Loans in Texas:
Your Questions, Answered Straight

No fluff, no banker-speak. Here are the questions every fix-and-flip investor asks us before their first hard money deal — and the answers that will save you time, money, and headaches.

What exactly is a hard money loan — and why does anyone use it?

▾

A hard money loan is a short-term, asset-based loan secured by real estate. The lender makes decisions primarily based on the property's value and your equity — not your tax returns, W-2s, or debt-to-income ratio. That's the entire point.

Investors use hard money when speed matters and conventional financing is too slow, too rigid, or simply unavailable. A bank takes 45–90 days. We take 7–14. A bank won't touch a distressed property that needs $80K in rehab. We will — because we're lending on what the property will be worth after repairs (ARV), not what it's worth today.

Use hard money when: (1) you need to close fast to win the deal, (2) the property can't qualify for conventional financing in its current condition, or (3) you're self-employed and your tax returns don't reflect your real income.

What interest rate will I pay on a Texas hard money loan?

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Your rate depends on your experience, LTV, property type and the strength of the deal, so we quote it on the file rather than publish a number you may turn out not to qualify for. Call 800-547-9081 for today’s rate — experienced investors with strong deals price at the better end of our range.

Scenario	Typical Rate	Why
Experienced investor, 65% LTC	Quoted on your deal	Lower risk, less capital deployed
First-time investor, 75% LTC	Quoted on your deal	Higher risk, larger advance
Rural property or complex deal	Quoted on your deal	Liquidity risk and exit uncertainty

Perspective check: on a $200K loan at 12% for 6 months, your interest cost is ~$12,000. If your flip nets $40K profit, your true cost of capital is 30% of the profit — not the headline rate. Model your deal on profit after financing, not the rate alone.

What are "points" and how much will I pay?

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Points are an upfront origination fee charged as a percentage of the loan amount. 1 point = 1% of the loan. A $300K loan at 2 points = $6,000 paid at closing. Most Texas hard money lenders charge 2–4 points.

Points compensate the lender for fast underwriting, direct capital deployment, and the cost of maintaining a loan pipeline without the float a bank enjoys. Think of it as a speed and flexibility premium — you're paying for access, not just money.

Negotiating tip: lenders who charge fewer points often make it back in higher rates or shorter extension windows. Model the all-in cost (rate × months + points + fees) rather than comparing points in isolation.

What credit score do I need for a hard money loan?

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Most hard money lenders in Texas want to see at least a 620 credit score — but it's far less critical than your deal quality and equity position. We've funded investors with 580 scores on strong deals, and declined investors with 750 scores on weak deals.

What we actually care about, in order: (1) The deal itself — does the ARV pencil out? (2) Your equity — are you bringing enough skin in the game? (3) Your experience — have you completed flips before? (4) Your exit plan — sell or refinance, and is it realistic? Credit score is last.

If your credit is below 620, come prepared with: 20%+ down, a realistic renovation budget from a licensed contractor, and comps supporting your ARV. A strong deal overcomes a weak score far more often than people expect.

Do I need to show income or tax returns?

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No. Hard money loans are asset-based, not income-based. We do not require W-2s, tax returns, pay stubs, or debt-to-income ratios for fix-and-flip loans. This is the primary advantage for self-employed investors, business owners, and anyone who writes off income aggressively.

We'll verify your identity, pull credit, and evaluate the property — that's the underwrite. Your income is irrelevant because our repayment comes from the sale proceeds or refinance proceeds, not your monthly paycheck.

How fast can you actually close?

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Our standard close is 10–14 business days from application. For experienced borrowers with clean titles and straightforward deals, we've closed in 7 days. For first-timers or complex deals, 14–21 days is more realistic.

What drives the timeline is not us — it's the title company. Title search, lien searches, and scheduling the closing notary are the long poles. We can approve your loan in 24 hours; the title takes 5–10 days. If you're working with a title company that knows investor transactions, you'll close faster.

Faster close tip: open title the same day you submit your application to us — don't wait for our approval. Both processes run in parallel, and you'll close 3–5 days sooner.

What's the difference between LTV and LTC — and which do you use?

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LTV (Loan-to-Value) is based on the current as-is value of the property. A $200K property at 70% LTV = $140K loan. LTC (Loan-to-Cost) is based on your total project cost (purchase + rehab). A $150K purchase + $50K rehab = $200K total cost; 80% LTC = $160K loan.

Most fix-and-flip lenders use a combination: we'll lend up to 80% of total project cost AND up to 70–75% of as-is value (whichever is lower). We also cap at 65–70% of ARV — the after-repair value — to protect both of us from over-leveraging.

Metric	What It's Based On	Our Limit
LTC	Purchase + rehab costs	80%
LTV (as-is)	Current property value	75%
LTV (ARV)	After-repair value	70%

Do you fund rehab costs, or just the purchase price?

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We fund both — purchase and rehab — in a single loan. The rehab portion is held in a draw reserve and released in 2–5 installments as work is completed and verified by inspection.

How draws work: you submit draw requests as you complete renovation milestones. We inspect the work (in-person or via photos), verify completion, and wire the draw within 48–72 hours. You're never floating more than one phase of work at a time.

Budget tip: build a 10–15% contingency into your rehab budget before submitting. Texas weather, hidden issues behind walls, and permit delays are real. Lenders who see a contingency line in your budget trust your numbers more.

What fees should I expect beyond rate and points?

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Here's the honest breakdown of what hard money loans actually cost beyond the headline rate:

Fee	Typical Range	Notes
Origination (points)	2–4% of loan	Paid at closing
Appraisal / BPO	$400–$800	Needed to confirm ARV
Processing / underwriting	$500–$1,500	Some lenders waive this
Title insurance + closing	$1,500–$3,000	Paid to title company, not us
Draw inspection fees	$100–$200 per draw	Third-party inspector
Extension fee	0.5–1% per month	If you need 30+ day extension

Can I use hard money for my first flip if I've never done one before?

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Yes — we fund first-time investors regularly. But we underwrite more conservatively: expect to bring 20–25% down (versus 10–15% for experienced investors), and we'll want to see that your ARV is well-supported by active comps in the same neighborhood, not wishful thinking.

What makes a first-timer fundable: a realistic renovation scope (not a total gut renovation as your debut project), a solid general contractor you've already vetted, comps within 0.5 miles and 6 months that support your exit price, and a clear exit — sell or refinance into a rental.

Start smaller: your first flip should be cosmetic or light-moderate rehab, not structural or mechanical. A $60K rehab on a $200K property on your first deal is a recipe for cost overruns and blown timelines.

What happens if my project runs over the loan term?

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Most hard money loans have 6–12 month terms. If your project runs long, extensions are available — typically 1–3 months at a time, with a fee of 0.5–1% of the loan balance per extension period. Extensions require that you're not in default and that the project is progressing.

The critical thing: communicate early. If you're on month 4 of a 6-month loan and you're 60% done with rehab, call us now — not in month 6. Lenders who know a borrower is on track will extend readily. Surprises at the maturity date create problems that could have been avoided.

If your project genuinely needs 9 months, ask for a 9-month term at origination — not a 6-month term with the hope of extending. Planning beats scrambling every time.

Can I use a hard money loan for a rental property (not a flip)?

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Yes — with the expectation that you'll refinance into a DSCR or conventional rental loan at the end of the term. This is the core of the BRRRR strategy: Buy distressed → Rehab → Rent → Refinance → Repeat. Hard money is the acquisition-and-rehab vehicle; the rental loan is the permanent hold vehicle.

The key metric your refinance lender will use is DSCR (Debt Service Coverage Ratio): monthly rent ÷ monthly loan payment. Most DSCR lenders want 1.20× or higher to approve the cashout refinance. Model your numbers before you buy to confirm the exit works.

Ready to Get Your Deal Funded?

Submit your deal — purchase price, rehab estimate, and ARV. We'll have a term sheet back in 24 hours. No commitment, no credit pull until you say go.

Get a Term Sheet →

Historic Property Renovation Financing

Historic Home & Historic District
Renovation Hard Money

Historic and landmark-district properties in Texas cities like San Antonio, Galveston, Fort Worth, and East Dallas can be some of the most profitable renovation projects around — and some of the hardest to finance, because most hard money lenders don't understand historic commission review timelines, material restrictions, or how they change a project's draw schedule.

Up to 75%

LTC (Purchase + Rehab)

Quoted on your deal

Rate Range

9-18 mo

Term

7-10 days

Typical Close

Renovating a property inside a designated historic district usually means an added layer of approval — a local historic preservation commission or design review board signing off on exterior changes, window replacement, roofing materials, or additions before a permit is even issued. That review adds real time to a project timeline that a standard 6- or 9-month hard money term doesn't always account for, and it can restrict material and design choices in ways that change your renovation budget. We build both into the loan structure from the start instead of treating it as a surprise mid-project.

What We Finance

Historic District Flip

Purchase and rehab of a designated historic property for resale

Historic Rental Conversion

Renovating a historic single-family or small multifamily into a rental hold

Facade & Structural Restoration

Bridge financing focused on exterior/structural restoration ahead of interior work

Adaptive Historic Reuse

Converting a historic commercial or institutional building to residential or mixed use

Strong Underwriting Profile

Pre-application consultation already done with the local historic commission or design review board

Contractor with actual historic-renovation experience, not a standard flip crew

Rehab budget accounts for historic-grade materials (real wood windows, matching brick, slate) where required

Timeline built with realistic review-board approval windows, not a standard flip schedule

Structural bones (foundation, framing, roof structure) sound, cosmetic work is the bulk of scope

Needs Closer Review

No contact yet with the historic commission and an aggressive renovation timeline assumed

Budget built on standard (non-historic-grade) material costs for a project that requires them

Major structural work needed on a building with unclear prior renovation history

Local ordinance restricts the intended end use (e.g., short-term rental bans in some historic districts)

Draw Schedules Built Around Review-Board Timelines

A standard flip draw schedule assumes work proceeds continuously once it starts. Historic renovation often doesn't — a facade approval might be needed before interior demo can proceed to the next phase, or a materials substitution might need board sign-off mid-project. We structure draws around the realistic sequence of historic-district work, so your loan term isn't quietly running out while you wait on a commission meeting.

Working a Deal in a Texas Historic District?

Send us the property, district designation, and rehab scope. We'll tell you what it qualifies for — usually same day.

Get Your Hard Money Quote →

HOA & Assessment Lien Purchases

Financing an HOA Foreclosure or Assessment-Lien Purchase in Texas

When a homeowner falls behind on HOA dues, the association can foreclose its own assessment lien — often for a few thousand dollars owed against a property worth hundreds of thousands. These sales move fast, close for cash, and rarely qualify for conventional financing. That's exactly the gap hard money fills.

Under the Texas Property Code, a homeowners' or property owners' association can foreclose a lien for unpaid assessments, but the process differs sharply from a mortgage foreclosure: an HOA generally must obtain a court order to foreclose on a homestead property (non-judicial foreclosure of an assessment lien on a homestead is restricted under Chapter 209), and any surplus proceeds above what's owed the association and any senior lienholders belong to the former owner, not the buyer. Crucially, an HOA lien is typically junior to any existing mortgage — buying at an HOA sale does not wipe out a first-lien mortgage still on the property, which is the single most common mistake investors make chasing these auctions.

Why Speed and Cash Certainty Matter Here

HOA foreclosure sales are conducted like other Texas foreclosure auctions — cash or cashier's check due same-day, no financing contingency, no inspection period. A buyer who wins the bid without financing already lined up either loses the deposit or has to come up with the full balance within hours. We can pre-underwrite a buyer against a specific property before the sale date and fund at the courthouse steps or shortly after, the same way we do for tax-delinquent and judgment-lien purchases — the difference here is verifying what senior liens, if any, survive the sale before we'll fund against the property.

HOA / Assessment Lien Sale

Typical Debt Foreclosed

Few thousand $ in unpaid dues/fines

Senior Mortgage Survives?

Usually yes

Homestead Property

Court order generally required

Mortgage / Tax Foreclosure Sale

Typical Debt Foreclosed

Full loan balance or back taxes

Junior Liens Survive?

Usually wiped out

Process

Non-judicial, first Tuesday

Verify the Senior Lien First

We title-search before funding — buying "clean" at an HOA sale means nothing if a mortgage in default is still attached and heading to its own foreclosure.

Redemption Rights

Depending on how the sale is structured, a former owner may retain limited redemption rights — we confirm this before closing, not after.

Occupancy Status

Many of these properties are still occupied by the former owner or a tenant — eviction timeline factors into our exit and holding-cost underwriting.

Bidding at an HOA or Lien Sale?

Send us the property and sale details before auction day — we'll tell you what we can pre-approve and how fast we can fund if you win the bid.

Start Your Application

HOA-Restricted Renovation Financing

HOA-Restricted Property Renovation Hard Money

Flipping or renovating a property inside an HOA-governed community adds a layer most investors don't plan for — architectural review approval, exterior material/color restrictions, and construction timeline rules that can slow a project down if you don't build the HOA process into your budget and schedule from day one.

HOA Approval

Budget the Timeline In

70-75%

Typical LTC/ARV

7-14 Days

Typical Close

Many Texas HOAs require architectural review committee (ARC) approval before exterior renovation work begins — roof material and color, fence style, paint colors, landscaping changes — and that review process can add real weeks to a project timeline if it's not requested and budgeted for from the start. Investors who don't account for this often find their renovation stalled waiting on HOA sign-off after crews are already scheduled, burning holding costs on a hard money loan while nothing visible happens.

Interior renovation work is typically unrestricted by the HOA, so a strategy that front-loads interior work while the ARC review for exterior changes is pending can keep the project moving on both fronts simultaneously rather than sitting idle. We fund the full renovation scope with this reality built into realistic draw scheduling, not a generic timeline that ignores HOA approval steps.

What to Plan For

Before You Start Renovating

Pull the HOA's CC&Rs and architectural guidelines before finalizing your renovation scope

Submit ARC approval requests for exterior changes as early as possible in the process

Sequence interior work to run in parallel with exterior approval waiting periods

Confirm any HOA-specific contractor requirements (approved vendor lists, insurance minimums)

What Still Matters

Some HOAs restrict construction hours/days, extending project timelines beyond what a non-HOA property would need

HOA transfer fees and estoppel letter costs add to closing costs — budget for them

Check for pending special assessments that could affect the property's value or your holding costs

A resale in the same community should match ARC-approved finishes to avoid buyer objections

Building the Real Timeline Into Your Numbers

An HOA-restricted renovation isn't harder to finance, but it does run on a different timeline than an unrestricted property — investors who build that reality into their holding-cost math from the start avoid the margin erosion that comes from an unplanned delay eating into a tight flip budget.

Planning a Renovation Inside an HOA Community?

Send us the property and HOA details. We'll help you plan a realistic timeline and budget.

Submit Your Loan Request →

Texas Homestead Law & Business-Purpose Lending

Why Hard Money Lenders Won't Touch
Your Own Home — And What Counts Instead

Texas has some of the strongest homestead protections in the country, written directly into the state Constitution. That's great news if you own a home here — and it's exactly why every legitimate hard money lender in Texas requires your loan to be business-purpose, not secured by the home you actually live in.

Art. XVI, §50

Texas Constitution

Business Purpose

Required Loan Classification

Non-Owner-Occupied

What We Lend Against

Signed Affidavit

Confirms Occupancy Status

Not legal advice. Homestead law is fact-specific and interacts with your particular property, occupancy history, and loan structure. Consult a Texas real estate attorney or title company for guidance on your specific situation — this is educational context, not a substitute for legal review.

Article XVI, Section 50 of the Texas Constitution protects a homeowner's primary residence from most forced sale and most types of lien, and tightly restricts what kind of debt can even attach to it. This is a genuinely borrower-protective law — it's a big part of why Texas fared better than many states through past housing downturns. But it also means a homestead property carries lending restrictions that a non-owner-occupied investment property simply doesn't. Hard money, by design, funds business-purpose deals — rentals, fix-and-flips, and commercial acquisitions — not consumer home loans against your own residence.

What "Business Purpose" Actually Means Here

Not Your Primary Residence

The property can't be the home you currently live in or intend to occupy — that's a consumer/homestead transaction under a different legal framework entirely

Proceeds Fund the Business

Loan proceeds go toward acquisition, rehab, or a rental/commercial investment — not personal living expenses or improving your own house

Documented in Writing

Your loan agreement and closing documents state the business purpose explicitly, and you'll typically sign an occupancy affidavit confirming you won't live there

Properties Hard Money Can Finance

A fix-and-flip you're buying to renovate and sell — you don't live there

A rental property, single-family or small multifamily, held as an investment

A second/vacation home you're improving specifically to sell or rent, not to occupy

Commercial or mixed-use property acquired for business purposes

What Doesn't Fit — And Why

Your current primary residence — protected homestead property, a different lending framework entirely (talk to a conventional or home-equity lender instead)

A property you plan to move into after rehab — occupancy intent, not just current use, is what matters here

Structuring a personal home loan to look like a "business purpose" loan on paper — this doesn't hold up and puts both parties at risk

A spouse or family member's homestead where you're not the actual owner of record — occupancy and title need to line up

What If You Change Your Mind and Move In?

Moving into a property that was financed as a non-owner-occupied, business-purpose loan can create real problems — both for the loan's legal standing and for your own homestead protections down the line, since those protections generally attach based on your actual use of the property. If your plans genuinely change mid-project, talk to your lender and a real estate attorney before you occupy the property, not after. It's a fixable conversation early; it's a much harder one retroactively.

Have a Business-Purpose Deal? Let's Talk.

Rental, flip, or commercial acquisition — if it's not your homestead, we can likely finance it. Fast term sheets, no surprises.

Get Your Hard Money Quote →

Distressed Property Financing

Financing Fire-Damaged & Insurance Claim Properties:
Where Conventional Lenders Won't Go

Fire-damaged, flood-damaged, and insurance claim properties represent some of the deepest discounts in Texas real estate — and some of the most consistent opportunities for experienced flippers. Conventional lenders won't touch them. Hard money lenders fund them routinely, because the underwrite is based on the after-repair value, not the current condition of the collateral.

Light Damage

Smoke & Cosmetic Fire

Contained to one room or area. Smoke odor throughout, surface char, damaged drywall. Structure intact, no roof penetration, no HVAC damage. Rehab: remediation + cosmetic finish.

LTV basis: 70% ARV · Rehab: $25–60K · Timeline: 2–4 months

Moderate Damage

Structural Fire (Partial)

Fire penetrated one or more rooms, roof damage in affected area, framing compromised in sections. Requires partial demo, structural repair, re-roof of damaged sections, MEP inspection.

LTV basis: 65–70% ARV · Rehab: $60–130K · Timeline: 4–7 months

Heavy Damage

Total Loss / Rebuild

Structure is unsalvageable. Lender funds as a lot with the land value as primary collateral, plus construction budget for a ground-up rebuild. Requires demo permit before construction loan closes.

LTV basis: 60–65% completed value · Build cost: $130K+ · Timeline: 9–15 months

Water Damage

Flood / Pipe Burst

Category 1–3 water intrusion. Subfloor damage, mold remediation required, potentially HVAC and electrical damage. Mold clearance letter required before any financing discussion.

LTV basis: 65% ARV · Rehab: $40–100K · FEMA flood zone impacts terms

Storm Damage

Hail / Wind / Tree Strike

Roof replacement, siding, windows, fence. Interior damage from leaks. Most straightforward insurance claim property type — often owner-occupied sellers who want out quickly after a claim.

LTV basis: 70–75% ARV · Rehab: $15–50K · Timeline: 1–3 months

Environmental

Meth Lab / Biohazard

Requires certified remediation company, official clearance certificate, and disclosure to all future buyers. Significant discount opportunity but lender scrutiny is high. Environmental report required.

LTV basis: 60% ARV (cleared) · Requires: remediation cert before funding

How to Acquire and Fund a Damaged Property in Texas

The acquisition and funding process for damaged properties differs meaningfully from a standard flip. Here's the step-by-step:

Assess Before You OfferWalk the property with a GC before making an offer. Get a rough scope — structural damage, roof penetration, MEP status. Never offer on a fire-damaged property without eyes on the framing and subfloor.

Get Insurance Documentation from SellerObtain the insurance adjuster's estimate and any payout records. If an insurance claim was filed, you need to know if funds were already paid to the seller — and whether those obligations transfer to you at closing.

Establish the ARV with CompsRun comps on fully repaired, similar homes within 1 mile. The ARV must be supportable by sold comps — not active listings, not the seller's optimistic number. This is the basis of the hard money loan.

Build a Line-Item Rehab BudgetScope every damaged system: demo, framing repair, roofing, MEP, drywall, flooring, finishes. Add 15% contingency — damaged properties almost always have hidden costs behind the walls. Lender requires a detailed budget.

Submit to Hard Money LenderProvide: purchase contract, ARV comps, detailed rehab budget, contractor information, your exit strategy (sell retail or BRRRR). Term sheet typically within 24–48 hours on clear deals.

Close and Begin RemediationDemo and remediation typically happen before any reconstruction draws. Smoke, mold, and biohazard remediation clearance letters are required before the property is re-inspected for subsequent draws.

Why Experienced Flippers Target Insurance Claim Properties

The discount on a fire or storm-damaged property is not accidental — it's structural. Sellers face insurance company delays, contractor availability issues, the stress of temporary housing, and often just want to sell fast at a discount and move on. This creates predictable off-market opportunity:

Motivated Sellers

Homeowners dealing with insurance companies, adjusters, and contractors are exhausted. Cash offers that close fast at 60–70% of ARV are often accepted because the alternative is a 6-month insurance battle.

Below Replacement Cost

In a high-cost construction environment, acquiring a damaged property at land value plus 20% of build cost and repairing it for 60% is still below replacement cost — creating built-in equity at completion.

Less Competition

Most retail buyers can't get financing on damaged properties. Most flippers are scared off by visible damage. Less competition = better pricing and more time to do proper due diligence before closing.

Direct Sourcing

Insurance adjusters, restoration contractors, and remediation companies are deal flow sources that most investors ignore. Building those relationships puts you in front of damaged property opportunities before they're ever listed.

Do This on Every Damaged Deal

Hire a licensed structural engineer if there's any framing or foundation concern

Get a mold inspection even on fire-damaged properties — fire hose water causes mold

Verify all permits are pulled before rehab begins — fire damage often triggers full permit requirement

Disclose fire or flood history to all future buyers — Texas has strict disclosure requirements

Budget 15–20% contingency minimum — more than a standard flip

Confirm insurance availability for the repaired property before you buy — some zip codes have insurer pullouts

Never Do This on Damaged Deals

Don't assume cosmetic damage without opening walls — char often goes deeper than visible surfaces

Don't ignore the insurance claim history — liens and subrogation rights can follow the property

Don't buy in a FEMA high-risk flood zone without understanding insurance cost implications

Don't skip remediation documentation — lenders, title companies, and future buyers all require clearance letters

Don't try to hide damage history — Texas disclosure violations are a significant legal liability

Don't use day-laborers for remediation — mold and biohazard removal requires certified contractors

Fire or Storm Damaged Property Under Contract? We Fund It.

Conventional lenders pass on damaged properties. We don't. Bring your purchase price, your ARV comps, and your line-item rehab budget — we'll have a term sheet within 24 hours. We've funded smoke damage, partial fire losses, flood remediation, and total-loss rebuilds across Texas.

Submit Your Damaged Deal →

Investor Protection

Fix & Flip Insurance Guide:
What Texas Investors Must Have Before Closing

A standard homeowner's policy won't cover a vacant rehab property. Here's every insurance policy a Texas fix-and-flip investor needs — and what your hard money lender will require.

Builder's Risk Insurance

Anyone doing renovation work

Required

Covers the property structure during renovation — fire, vandalism, wind, theft of materials. Standard homeowner's policies exclude vacant, under-renovation properties. Builder's risk fills this gap. Most hard money lenders require it as a condition of closing.

Cost: 1–4% of project value annually | $600–$2,400/yr on a $150K project | Often sold in 3-month or 6-month increments

Vacant Property Insurance

Properties between tenants or pre-rehab

Required

Once a property is vacant for 30–60 days, standard policies are void. Vacant property insurance covers fire, vandalism, and liability on an unoccupied building. Required by hard money lenders immediately upon closing if no tenant is in place. Typically issued in 3-month terms.

Cost: $600–$1,800/yr depending on property value and location | Texas markets: higher rates in flood zones or high-crime areas

General Liability Insurance

All investors — personal + LLC

Required

Covers bodily injury and property damage to third parties. If a neighbor is injured by falling debris, or a potential buyer trips during a showing, GL covers your legal exposure. Get at least $1M per occurrence / $2M aggregate. Most hard money lenders name themselves as additional insured on the GL policy.

Cost: $500–$1,200/yr for a $1M GL policy | Increases with claim history | Umbrella policy can add $1M+ for $200–$400/yr

Flood Insurance

Properties in FEMA flood zones

Required (if applicable)

Lenders are required by law to mandate flood insurance on properties in Special Flood Hazard Areas (SFHA). In Texas — especially in Houston, Beaumont, and coastal areas — many properties are in AE or X500 flood zones. NFIP coverage or private flood insurance must be in place before closing.

Cost: $800–$5,000+/yr depending on zone and building value | Risk Rating 2.0 has increased costs for some high-risk properties | Get a flood elevation certificate for accurate pricing

Umbrella Policy

Investors with multiple projects

Recommended

Adds an additional layer of liability coverage above your GL, auto, and homeowner's policies. A $1M lawsuit can come from almost anywhere on a construction site — an umbrella policy covers excess liability at minimal cost. Strongly recommended for investors doing 2+ simultaneous flips.

Cost: $200–$500/yr for $1M in additional coverage | Best value in insurance — dollar-for-dollar the cheapest coverage available

Contingent Liability (Wrap-Up)

Large projects with multiple contractors

Optional

For projects over $500K with multiple subcontractors, an Owner Controlled Insurance Program (OCIP) or Wrap-Up policy provides one umbrella policy covering all parties on the job. Simplifies the requirement to collect COIs from every sub and ensures no coverage gaps between trades.

Cost: 1–2% of project cost | Makes sense on projects $500K+ | Discuss with a commercial insurance broker

What Hard Money Lenders Will Require at Closing

Before we fund your loan, here's exactly what you'll need to provide on the insurance side:

📋

Certificate of Insurance (COI) — Builder's Risk or Vacant PropertyIssued by your insurance agent naming the lender as mortgagee. Coverage must equal or exceed the loan amount. Must be active on the day of closing.

🏦

Lender Named as Additional Insured and Loss PayeeThe lender's full legal name must appear on the policy. "Additional insured" protects the lender from third-party liability claims. "Loss payee" ensures insurance proceeds on a total loss are applied to the loan first.

🌊

Flood Determination + Coverage (If Required)We run a flood zone determination at closing. If the property is in a SFHA, flood insurance must be in place before we fund. NFIP or private flood insurance both acceptable.

💰

Coverage Amount ≥ Replacement Cost of StructureInsurance must cover at least the replacement cost of the structure (not the purchase price — replacement cost can be higher on distressed purchases). Your agent can calculate this with a cost estimator.

Using a Standard Homeowner's Policy

Homeowner's policies exclude vacant properties and construction activities. If you file a claim on a vacant rehab under a standard HO policy, it will be denied. Get builder's risk before you close.

Letting Coverage Lapse at Project End

The most dangerous coverage gap is between project completion and occupancy by a tenant. Keep vacant property insurance active until lease execution — not "until we're done with the rehab."

Not Adding the Lender as Loss Payee

Lenders will require this as a condition, but it's easy to miss in the policy setup. An insurance payout to you personally instead of the lender creates a covenant violation on your hard money loan.

Underinsuring the Replacement Cost

If you bought a distressed property for $95K and replacement cost is $180K, you need $180K of coverage — not $95K. After a fire, rebuilding is priced at current material and labor costs, not your purchase price.

We'll Walk You Through the Insurance Requirements

Submit your deal and we'll tell you exactly what insurance you need at closing. Most experienced Texas investors have their insurance agents on call — we can recommend several for hard money projects.

Get Funded — We'll Handle the Rest →

Interest Reserve & Holdback Explained

Interest Reserves & Construction Holdbacks: How They Actually Work

One of the most misunderstood parts of a hard money loan is the interest reserve — money set aside from the loan itself to cover monthly interest payments during the project, so you're not paying out of pocket while your capital is tied up in renovation. Here's exactly how it works and why it matters for your project's real cash-flow math.

Loan-Funded

Not Extra Out-of-Pocket Cash

Monthly Draws

Released to Cover Interest

6-18 Mo

Typical Reserve Period

An interest reserve is a portion of the total loan amount set aside at closing specifically to make the monthly interest payments on the loan itself, rather than requiring the borrower to pay interest out of pocket each month during the renovation or hold period. It's funded from the loan proceeds, not an additional cost — the lender essentially loans you the money to pay the loan's own interest until the property sells or refinances.

A construction holdback works alongside the interest reserve but serves a different purpose: it's the portion of the loan set aside specifically for renovation costs, released in draws as work completes and gets inspected, rather than handed over in full at closing. Together, the interest reserve and the holdback mean a borrower can close a hard money loan with limited cash reserves beyond the down payment, since both the interest carrying cost and the construction budget are funded through the loan structure itself.

Why This Matters for Your Deal Math

What This Means for You

Monthly interest payments are typically covered from the reserve, not your operating cash

Frees up personal capital for down payment, contingency, and unexpected costs

The reserve amount is calculated into your total loan amount and total project cost upfront

Draws for renovation release separately from interest reserve draws, on their own inspection schedule

What Still Matters

The reserve is finite — if your project runs past the reserve period, you're paying interest out of pocket

Interest still accrues on the full loan balance, including the reserve portion itself

A realistic project timeline matters — an undersized reserve on an overrun project creates a cash-flow surprise

Reserve and holdback structures vary by lender — confirm exactly how yours is calculated before closing

Building It Into Your Project Plan

Understanding how the interest reserve and holdback actually work lets you build a realistic total-cost picture before you close — how much cash you actually need at the table, how long your reserve covers you, and what happens if the project runs long. It's one of the most important numbers to get right before signing, and one of the most commonly misunderstood.

Want Your Real Numbers, Not a Generic Example?

Send us your project and timeline. We'll show you exactly how the reserve and holdback work on your specific deal.

Submit Your Loan Request →

Judgment Lien & Lis Pendens Purchases

Buying Properties With a Judgment Lien or Lis Pendens Attached

A property with a recorded judgment lien or an active lis pendens (notice of pending litigation) scares off conventional buyers and lenders instantly — but many of these deals are perfectly financeable once the lien amount, priority, and payoff path are actually understood. We work these deals regularly and structure funding around getting the title genuinely clean at closing, not around pretending the issue isn't there.

Lien Priority

Recording Date Determines Payoff Order

Title Company Escrow

Payoff Funds Held/Disbursed at Closing

Lis Pendens ≠ Lien

A Notice of Litigation, Not a Debt Itself

Release/Payoff Letter

Required Before Clean Title Transfers

A judgment lien attaches to real property once a creditor records an abstract of judgment in the county where the property sits — it doesn't need to name the property specifically, and Texas allows judgment creditors to reach non-homestead real estate this way. A lis pendens is different: it's just a public notice that a lawsuit affecting title is pending, warning buyers a claim could still be decided against the seller.

What We Look At

Judgment Lien Payoff at Closing

Structuring the purchase so lien proceeds are paid and released through title escrow

Lis Pendens Resolution Purchases

Buying once pending litigation is resolved, dismissed, or bonded off

Multiple/Stacked Judgment Liens

Properties with several liens in different priority positions from different creditors

Distressed Seller Lien Negotiations

Financing tied to a negotiated reduced payoff on an underlying judgment

Strengthens the Deal

Title company confirms the exact lien payoff amount and it fits inside the purchase proceeds

Lis pendens has been dismissed, settled, or bonded off before closing

Clear lien priority order with no surprise senior claims discovered late

Seller cooperative and providing full documentation on the underlying judgment

Slows the Deal

Lien amount unknown or disputed, with no confirmed payoff figure from the creditor

Active, unresolved litigation still pending under the lis pendens

Multiple liens with unclear or contested priority ordering

Purchase price too thin to cover lien payoff plus a real equity cushion

Why the Title Company Is the Real Gatekeeper

We don't fund around a lien — we fund through a title company that verifies the exact payoff, disburses it at closing, and gets a proper release recorded so the buyer takes clean title. That's the difference between a genuinely financeable distressed-title deal and one where the underlying problem just transfers to the new owner.

Found a Deal With a Lien or Lis Pendens Attached?

Tell us what's recorded against the property and the payoff situation. We'll tell you fast whether it's financeable and what it takes to close clean.

Get Your Hard Money Quote →

Ownership Structuring

Taking Title Through a Texas Land Trust

Many hard money borrowers — especially landlords holding several rentals or investors who prefer to keep their name off public deed records — close using a land trust instead of taking title in their own name or a bare LLC. We lend to land trusts routinely; here's what borrowers actually need to know.

A land trust (sometimes called an "Illinois-style" or "Texas land trust," though the mechanism is really just a common-law title-holding trust) is a private agreement where a trustee holds legal title to a property while a beneficiary — the actual investor — retains full control and economic benefit. Because the trust agreement itself is never recorded, only a deed to "[Trustee], as Trustee of the [XYZ] Land Trust" appears in the county clerk's public records. Anyone searching the property by address finds the trust name, not the beneficiary's name — a meaningful layer of privacy for investors who don't want their rental holdings easy to map from a courthouse computer.

Why Hard Money Borrowers Use Them

Beyond privacy, a land trust makes portfolio transfers and estate planning simpler: beneficial interest in the trust can often be assigned or willed without a new deed, deed stamp tax, or a due-on-sale trigger the way a straight property transfer would. Pairing a land trust with an LLC as the named beneficiary is common — the trust hides the ownership from public deed records, while the LLC beneficiary provides the underlying liability separation. We underwrite the deal the same way regardless of the vesting: it's still the real humans behind the trust who sign the personal guaranty and go through underwriting, not the trust itself.

Trust Is Formed

Borrower (or their attorney) drafts a land trust agreement naming a trustee and beneficiary — done before or at closing, doesn't require a new legal entity filing with the state.

We Underwrite the Beneficiary

Personal guaranty, credit, and experience are underwritten on the real beneficial owner(s) — same process as an LLC-vested loan, trust or no trust.

Deed Vests in the Trustee

Closing deed reads "[Trustee], as Trustee of [Name] Land Trust" — the beneficiary's name never touches the recorded deed.

What a Land Trust Does

Keeps beneficiary's name off the public deed record

Simplifies transferring beneficial interest later without a new recorded deed

Can be paired with an LLC beneficiary for privacy + liability protection together

What It Doesn't Do

Does not by itself shield the beneficiary from personal liability — that's the LLC's job, not the trust's

Does not exempt the loan from underwriting, appraisal, or a personal guaranty

Trustee still must be someone the lender can verify has authority to sign closing documents

Closing Through a Land Trust?

Tell us the vesting you want up front — trust, LLC, trust-with-LLC-beneficiary, or your own name — and we'll structure the loan documents and title work to match, without slowing down your closing timeline.

Start Your Application

Lien & Judgment Payoff Bridge

Tax Lien & Judgment Payoff Bridge Financing

Found a below-market deal that's tangled up with a property tax lien, mechanic's lien, or judgment against the title? Hard money can fund the purchase and the payoff needed to clear title in one closing — fast enough to actually capture a deal that a slower conventional buyer couldn't touch.

65-70%

Typical LTV/ARV

7-10 Days

Typical Close

Title Clearing

Funded at Closing

6-12 Mo

Typical Term

Properties with unresolved property tax liens, mechanic's/contractor liens, or civil judgments attached to the title are exactly the kind of distressed opportunity that scares off both retail buyers and conventional lenders — title companies won't close without a clear resolution plan, and banks won't fund a purchase where the payoff math includes clearing someone else's debt. That combination often means these deals sell well below market to whoever can actually close.

Hard money is built for exactly this situation: the loan funds the purchase price and the negotiated lien/judgment payoff together, with the title company handling the payoff and release as part of closing, so the property transfers with clear title in a single transaction rather than a drawn-out separate negotiation.

Common Uses

Common Scenarios

Buying a property with a delinquent property tax lien that needs to be paid off at closing

Purchasing from a seller with a contractor/mechanic's lien clouding title

Acquiring a property with a civil judgment attached that must be satisfied to convey clear title

Off-market and estate-sale deals where lien resolution is part of the negotiated purchase

What Still Matters

A title company confirming the exact payoff amount and lien priority before closing

Total acquisition cost (purchase price + lien payoffs) still needs to support the ARV/exit math

Some liens (certain federal tax liens, specific judgment types) require specialized handling — confirm early

Realistic timeline — lien payoff negotiations can add time even with financing ready to go

Turning a Title Problem Into a Deal

Investors who know how to work with title companies on lien resolution consistently find below-market deals that less-experienced buyers pass on simply because the title isn't clean. Hard money financing that funds the full payoff structure — not just the purchase price — is what makes capturing those deals actually possible.

Found a Deal With a Lien or Judgment on Title?

Send us the purchase price, payoff amounts, and ARV. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Loan Request →

Live-Work Space Conversion

Live-Work Space Conversion Hard Money Financing

Converting a commercial or industrial building into live-work units — combined residential and workspace, popular with artists, makers, and small business owners — is a distinct zoning and financing category most conventional lenders won't touch during the conversion phase. Hard money funds the acquisition and buildout together.

65-70%

Typical LTC

Draw-Based

Conversion Funding

7-14 Days

Typical Close

6-18 Mo

Typical Term

Live-work spaces — units combining residential living quarters with a workshop, studio, retail, or office component in the same space — occupy a zoning and building-code gray area that varies significantly by city. Converting a warehouse, industrial building, or commercial storefront into live-work units requires navigating mixed-use zoning approval, residential building code compliance for the living portion, and often separate egress/fire-safety requirements not present in the original commercial use.

Conventional construction lenders typically want a clean single-use classification (purely residential or purely commercial) before they'll fund, which makes live-work conversions a natural fit for hard money's more flexible, deal-specific underwriting. Once converted and either leased or sold, live-work units in the right urban markets can command strong rents or sale prices from the growing population of remote workers, artists, and small business owners who want to live where they work.

Common Uses

Common Scenarios

Converting a warehouse or industrial building into multiple live-work units

Renovating a mixed-use storefront into a combined retail/residential live-work space

Building out artist or maker live-work lofts in an urban infill location

Repositioning underutilized commercial space into a higher-value live-work property

What Still Matters

Confirm the specific municipality's live-work zoning classification and requirements before committing

Residential building code compliance (egress, ventilation, plumbing) applies to the living portion

Realistic conversion budget — mixed-use code compliance can add unexpected cost

A clear exit — refinance into permanent financing or sale once conversion is complete

A Growing Category in Texas Urban Markets

Austin, Houston, Dallas, and San Antonio all have active live-work conversion markets, driven by remote work trends and demand from makers and small business owners who want to eliminate a commute entirely. Hard money financing is what makes the conversion phase possible before a property qualifies for conventional financing.

Converting a Texas Property to Live-Work Units?

Send us the property, zoning status, and conversion plan. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Loan Request →

LLC & Entity Purchase Financing

Buying in an LLC? Hard Money That's Built for Entity Borrowers

Most investors title their properties in an LLC for liability protection and portfolio organization — but conventional and even many private lenders slow-walk or flat-out reject entity borrowers, demanding personal guarantees, additional documentation, or refusing LLC vesting entirely. We lend directly to your LLC, partnership, or corporation as the borrower of record, with no run-around.

Entity Vesting

LLC/LP/Corp as Borrower

No Business History Req.

Newly Formed Entities OK

7-10 Days

Typical Close

Titling investment property in an LLC is standard practice for anyone building a portfolio — it separates personal and investment liability, simplifies estate planning, and keeps each property's risk contained to its own entity. The friction shows up at the lending stage: many conventional lenders won't lend to an entity at all (Fannie/Freddie loans require individual borrowers), and some private lenders that do allow LLC vesting still require the entity to have an operating history, its own credit profile, or extensive formation documentation before they'll fund.

Hard money financing solves this cleanly. Because the loan is underwritten against the property, not the entity's business track record, a brand-new single-member LLC formed specifically to hold the property is just as fundable as an established multi-member investment company — as long as the deal itself makes sense.

What We Require From Entity Borrowers

Straightforward to Fund

LLC, LP, or corporation properly formed and in good standing with the Texas Secretary of State

EIN and formation documents (Certificate of Formation, Operating Agreement/Bylaws)

A signing member/manager authorized to execute loan documents on the entity's behalf

Personal guaranty from the principal (standard practice, not a barrier)

Newly formed entities with no operating history — fundable on the deal alone

Slows Things Down

Entity not registered or not in good standing with the state

Multiple signing members with unresolved authority disputes

Ownership structure obscured through layered holding entities without clear beneficial ownership

No principal willing to personally guaranty the loan

From Purchase to Long-Term Entity-Held Rental Financing

An LLC-vested hard money purchase or bridge loan can convert into a DSCR rental loan at the same entity once the project stabilizes — keeping the same liability-protected structure from acquisition through long-term hold, with no need to move title or reform the entity along the way.

Ready to Close in Your LLC's Name?

Send us your entity details and the deal. We'll structure the loan directly to your LLC — usually within 48 hours to a term sheet.

Submit Your Loan Request →

If a Deal Runs Into Trouble

Hard Money Loan Default & Workout Options:
What Actually Happens

Every borrower researching hard money eventually asks the same question they're afraid to ask out loud: what happens if the exit doesn't go as planned? Here's a straight answer, because a lender who won't talk about this upfront usually isn't one you want to be in a deal with when it matters.

FIRST

Early Communication

Tell your lender before a payment is missed, not after — most workout options require this timing

OPTION

Short Extension

A brief maturity extension, typically with an extension fee, when the exit is close but not quite ready

OPTION

Forbearance / Modified Terms

Temporary payment relief or restructured terms tied to a documented, realistic plan to resolve the loan

LAST RESORT

Deed-in-Lieu / Foreclosure

Used only after other paths are exhausted — the outcome every workout conversation is trying to avoid

Why Hard Money Workouts Move Faster Than Bank Workouts

Because hard money loans are asset-based and privately funded, workout decisions don't route through a bank's loss-mitigation committee or take months to get an answer. A real conversation with your loan officer — backed by a specific, credible plan (a pending sale, a refinance in process, a delayed permit) — can produce an answer in days, not a multi-month review cycle.

The single biggest mistake borrowers make is going silent when a deal slips. Lenders have far more flexibility to work with a borrower who communicates early than one who disappears until a payment is already missed.

Deal Running Behind Schedule?

Talk to us before a payment is missed. Most timing problems have a workable path if we know about them early.

Talk to a Loan Officer →

Loan Extension & Modification

Need More Time? How Hard Money
Loan Extensions Actually Work

Rehabs run long and refinances get delayed. A hard money loan approaching maturity without a ready exit isn't automatically a default — it's a conversation to have with your lender before the maturity date, not after.

Case-by-Case

Extension Approval

Points-Based

Typical Extension Fee

30-90 Days

Common Extension Length

Before Maturity

When to Start the Conversation

An extension simply pushes the maturity date out and usually carries a fee (often quoted in points on the outstanding balance) plus continued interest at the note rate — it doesn't reopen underwriting the way a full modification or refinance would. A modification goes further: adjusting the rate, interest reserve, or draw schedule because the deal's circumstances have genuinely changed, not just the timeline. Which one fits depends on why the loan needs more time in the first place.

Situations That Typically Need More Time

Slow Sale or Refinance

The property is listed or a refinance is in process, but it's taking longer than the original loan term allowed

Rehab Running Long

Permitting delays, contractor scheduling, or unexpected scope pushed the renovation past the original timeline

Refinance Approval Delay

A takeout lender's underwriting or appraisal process is taking longer than expected to close

Market Softening Mid-Project

Comps or absorption slowed since the deal was underwritten, and the exit needs more marketing time

Extension-Friendly Situations

You've contacted the lender well before the maturity date, not after it's already passed

The exit plan (sale or refinance) is real and in progress, just running slower than planned

Interest reserve or carrying cost math still works for the additional time requested

The property's value and condition haven't deteriorated since the loan was originated

Needs a Harder Conversation

No contact with the lender until after maturity has already passed

No credible exit plan — just an open-ended request for more time

Rehab has stalled entirely with no active contractor or permit progress

Property value has declined enough that the loan-to-value no longer supports an extension on the same terms

Why Timing the Request Matters

A lender who hears about a delay three weeks before maturity has options — an extension fee gets quoted, terms get confirmed, everyone moves on. A lender who finds out the day after maturity is dealing with a technical default, which changes the conversation entirely, even if the underlying deal is otherwise sound. If a rehab or exit is running behind schedule, that's the moment to call, not after the date has already passed.

Loan Approaching Maturity and Need More Time?

Tell us where the project or exit stands. We'll walk you through extension options before the date becomes a problem.

Talk to a Loan Officer →

Loan Payoff Process

Paying Off Your Hard Money Loan:
How the Process Actually Works

Closing on the sale or refinance is only half the exit — actually paying off a hard money loan cleanly takes a written payoff statement, correctly calculated per diem interest, and a recorded release of lien. Get any one of those wrong and your closing can stall at the table.

Per Diem

Interest Accrues Daily

24–48 Hrs

Typical Statement Turnaround

Title Co. / Attorney

Routes Payoff Funds

Recorded

Release Filed With County

Paying off a hard money loan isn't as simple as wiring back the original principal balance. Because interest on these loans accrues daily rather than in a fixed monthly amount, the actual number due depends on the exact date funds arrive — which is why every legitimate payoff starts with a formal, written payoff statement, not a guess based on your last balance update.

What Actually Happens When You Pay Off Your Loan

Request the Statement

Your title company, closing attorney, or you directly request a written payoff good through a stated date

Per Diem Is Calculated

Daily interest is added for each day between the statement date and your actual funding date

Funds Wire at Closing

Payoff funds move through the title company or closing attorney handling your sale or refinance

Lien Release Is Recorded

Once funds clear, we execute a release of lien for recording in the county property records

Smart Payoff Timing

Request your payoff statement several business days before closing, not the morning of

Confirm the statement's "good-through" date actually matches your real funding date

Ask upfront whether any exit fee or minimum-interest period applies to your loan

Verify wiring instructions with us by phone, every time, before funds move

Costly Mistakes

Wiring only the original principal without added per diem interest — this shorts the payoff

Closing a day past the statement's good-through date without requesting an update

Assuming a hard money loan carries no early-payoff cost without checking first

Trusting wiring instructions from email alone with no live phone confirmation

Why the Release of Lien Matters Just as Much as the Payoff

A payoff isn't actually finished until the release of lien is recorded in the county real property records — until then, title still shows our loan as an open lien against the property, which can hold up your next transaction even after the balance is paid in full. We prioritize getting the release recorded quickly once funds clear, but building a few extra days into your closing timeline for recording is smart practice on any hard money payoff.

Planning Your Exit and Payoff?

Tell us your expected closing date and we'll get your payoff statement request started early — no surprises at the closing table.

Get Your Hard Money Quote →

Loan Servicing & Payments

How Loan Servicing Works:
Payments, Fees, and Insurance During Your Loan

Once your loan closes, servicing is how it's actually managed day to day — how payments get made, what happens if one is late, and what insurance you're required to keep in place. None of it is complicated, but knowing it upfront avoids surprises mid-loan.

Interest-Only

Typical Monthly Payment

ACH / Wire

Standard Payment Methods

Grace Period

Before Late Fee Applies

Required

Hazard/Builder's Risk Coverage

Most hard money loans are structured interest-only, so your monthly payment is simply the interest accrued on the outstanding balance — there's no amortizing principal payment to track. Payments are typically set up via ACH auto-draft or wire, and your servicer will confirm the exact due date and grace period in your loan documents at closing.

What You're Responsible For During the Loan

Monthly Interest Payment

Due on the date set in your note, typically with a short grace period before a late fee applies

Hazard / Builder's Risk Insurance

Property insurance naming the lender as loss payee is required for the life of the loan

Property Taxes

Kept current directly by the borrower unless an escrow arrangement is specifically set up

Draw Requests (If Applicable)

Rehab/construction loans follow a separate inspection-based draw process, not a standard payment

Keeps Servicing Smooth

ACH auto-draft set up at closing so payments never depend on remembering a due date

Hazard or builder's risk policy active from day one, lender listed as loss payee/mortgagee

Any change in insurance carrier or coverage reported to the servicer before the policy lapses

Property taxes tracked and paid on schedule even without an escrow account

What Triggers Default Interest or Fees

Payment missed past the grace period — a late fee and, on some notes, a higher default interest rate apply

Hazard/builder's risk insurance allowed to lapse — the lender may force-place coverage at the borrower's cost

Property taxes going unpaid to the point of a tax lien or delinquency notice

Repeated late payments, which can affect terms on any future loan with us

Force-Placed Insurance — Why It Costs More

If hazard or builder's risk coverage lapses and isn't replaced, the loan documents typically allow the lender to force-place a policy to protect the collateral — and that coverage is almost always more expensive and less comprehensive than a policy you shop for yourself. Keeping your own coverage active is the single easiest way to avoid an unnecessary cost increase mid-loan.

Questions About Servicing on an Active or Upcoming Loan?

Reach out and we'll walk you through exactly how payments, insurance, and draws work for your specific deal.

Get Your Fast Hard Money Quote →

Hard Money Basics

LTV vs. LTC vs. ARV:
The 3 Numbers That Drive Every Hard Money Deal

Lenders throw these terms around constantly. If you don't know the difference, you can't negotiate your loan or evaluate whether the deal works. Here's what each means and how they interact.

Loan Ratio

LTV

Loan-to-Value Ratio

The loan amount divided by the current market value (or purchase price) of the property as-is — before any improvements. This is the primary risk metric for the lender on the day the loan is made.

LTV = Loan ÷ Current Value
Example: $127,500 ÷ $150,000 = 85%

When Used

Purchase loans, refinances, bridge loans — any time the property already exists in its current condition

Cost Ratio

LTC

Loan-to-Cost Ratio

The loan amount divided by the total project cost — purchase plus rehab plus all other costs to get the property to its completed state. Used in value-add and construction deals where there's significant capital being deployed post-closing.

LTC = Loan ÷ (Purchase + Rehab + Other)
Example: $127,500 ÷ ($150K + $35K) = 68.9%

When Used

Construction loans, fix-and-flip deals with rehab draws, major value-add acquisitions

Future Value

ARV

After Repair Value

The estimated market value of the property after all planned renovations are complete. This is what the property will be worth — not what it's worth today. Some lenders offer ARV-based lending (80% of ARV), which can fund more of your rehab. Risky if ARV estimate is wrong.

ARV ≈ Sale Price of Comparable Improved Properties
Profit = ARV − Purchase − Rehab − Costs

When Used

Fix-and-flip deal evaluation, hard money underwriting, exit strategy planning, 70% rule calculation

Worked Example: Dallas Flip Deal

$150K purchase price, $35K rehab budget, $230K ARV — here's how all three metrics apply to the same deal:

Purchase Price: $150KAs-Is Value

85% LTV Loan = $127,500

15% equity = $22,500

Total Cost: $185K (purchase + rehab)LTC Basis

Loan $127,500 = 69% LTC

$57,500 out of pocket

After Repair Value: $230KFuture Value

All-In Cost $185K + fees = 86%

Profit

Purchase Price$150,000As-is value / LTV basis

Hard Money Loan (85% LTV)$127,500What lender provides

Your Down Payment$22,50015% of purchase

Rehab Budget$35,000Funded by you (or draw-based loan)

Total Cash In$57,500Down payment + rehab

ARV$230,000After renovation comparable sales

Estimated Profit (after all costs)~$28,000Before tax

The 70% Rule — Using ARV to Set Your Maximum Offer

The 70% rule is the most widely-used shortcut in fix-and-flip investing. It says: your maximum purchase price should be 70% of ARV, minus the rehab cost. The remaining 30% of ARV covers your hard money interest, carrying costs, selling commissions, and profit margin.

Formula: Max Purchase Price = (ARV × 0.70) − Rehab Cost

Using the example above: (230,000 × 0.70) − 35,000 = $126,000 max offer. The deal at $150K is above the 70% rule — it can still be profitable if your ARV estimate is solid and you control costs, but there's less margin for error.

The 70% rule is a filter, not a commandment. Strong ARV confidence, low holding costs, and a fast sale can make deals above 70% work. What it catches: deals where the math looks right on the back of a napkin but doesn't hold when you model all the costs.

Know Your Numbers. Get Funded.

Submit your deal with your purchase price, rehab estimate, and ARV — we'll tell you within 24 hours whether we can fund it and at what terms.

Analyze My Deal →

Specialty Hard Money

Manufactured Home & Mobile Home Park Hard Money in Texas

Texas has more manufactured homes than any other state — over 850,000 units, concentrated in exurban and rural counties where affordability pressure keeps demand strong. Most banks won't touch manufactured housing deals at all. We finance three distinct plays: single manufactured-home flips, land-home packages, and mobile home park acquisitions.

65–70%

LTV, Land-Home

60–65%

LTV, MHP Acquisition

7–14

Days to Close

HUD-Code

Post-1976 Required

Three Ways We Finance Manufactured Housing

Single-Unit Flip

Land-Home Package Rehab

Manufactured home permanently affixed to owned land (not a rented lot), titled as real property. We lend against the combined land + home value for rehab-and-flip or rehab-and-rent exits, same speed as a stick-built flip loan.

Portfolio Play

Scattered-Site MH Rentals

Investors building a portfolio of manufactured homes on owned lots across a rural county — we underwrite each as land-home real property and can finance in batches as the portfolio scales.

Park Acquisition

Mobile Home Park Bridge Loans

Bridge financing for MHP acquisitions where the value-add is lot rent increases, infrastructure upgrades, or converting tenant-owned-home lots to a more stable ownership mix. Underwritten on park-level NOI, not individual units.

Chattel Exclusion

What We Don't Do

We don't finance chattel-only loans on homes sitting on rented lots with no real property interest — that's a personal-property loan, not real estate, and outside our lending box.

What Makes an MH Deal Financeable

HUD-Code home built after June 1976 — pre-HUD-Code homes generally can't be financed or insured

Home permanently affixed to owned land with foundation meeting Texas real property conversion requirements (Form T)

Clear title with the home's HUD/manufacturer certificate properly retired into the real property deed

For MHP deals — utilities are park-owned or clearly metered, with a rent roll showing occupancy and lot rent trends

Comparable land-home or park sales in the county to support an appraisal — rural counties often have thin comps but they exist

What Creates Friction

Home on a rented lot with no real property interest — this is a personal-property/chattel loan, which we don't offer

Title certificate never retired — the home is still titled as personal property (like a vehicle) instead of converted to real property

Pre-1976 home — no HUD compliance certification, uninsurable and unfinanceable in nearly all cases

MHP with a high percentage of park-owned homes needing capital repair — treated as a heavier value-add deal requiring more reserves

Flood zone without confirmed elevation certificate — common issue in East Texas and Gulf Coast MH communities

Manufactured Home or Park Deal? Let's Talk.

Most hard money lenders won't look at manufactured housing. We will — land-home rehabs, scattered-site rental portfolios, and mobile home park acquisitions across Texas. Send us the address and the title status and we'll tell you fast whether it fits.

Submit Your Deal →

Manufactured Home on Owned Land

Manufactured Home on Owned Land: Hard Money Financing

A manufactured or mobile home permanently affixed to land you own titles and finances very differently than one sitting in a rented mobile home park lot — but a lot of lenders lump the two together and decline both. We finance manufactured homes converted to real property (de-titled from chattel to real estate) on owned land against the combined land-plus-home value.

65-70%

Typical LTV/ARV

De-Titled to Real Property

Required Structure

7-14 Days

Typical Close

6-18 Mo

Typical Term

Manufactured homes can be financed two fundamentally different ways: as chattel (personal property, like a vehicle title) when they sit on rented land such as a mobile home park lot, or as real property when the home is permanently affixed to land the owner holds title to and the manufactured home's certificate of title has been retired through the county. That second structure — real property financing — is what most hard money lenders can actually work with, since it lets the loan be secured by a standard real estate lien rather than a chattel/UCC filing.

This makes manufactured homes on owned acreage a real, financeable investment category for value-add investors — acquiring rural land with an older manufactured home, renovating or replacing the home, and building rental income or resale value from a property type conventional lenders and pure chattel lenders both tend to overlook.

Common Uses

Common Scenarios

Purchasing land with an existing manufactured home already de-titled to real property

Renovating an older manufactured home on owned acreage to improve rental or resale value

Replacing an aging manufactured home with a newer unit on land already owned

Acquiring rural land specifically to place and permanently affix a manufactured home

What Still Matters

Confirm the home's title has been retired/converted to real property with the county — this is required

Foundation must meet permanent-affixation standards, not just resting on blocks

Age and condition of the home matter significantly to both value and financeability

Rural land may have well/septic and access considerations affecting overall value

A Distinct Category From Mobile Home Park Financing

This is a fundamentally different product from financing a home inside a mobile home park (which HMOT covers separately) — here, the land and home are combined into a single real estate asset the investor owns outright, opening up a real estate financing path that pure chattel lenders can't offer.

Financing a Manufactured Home on Owned Texas Land?

Send us the property and title status. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Loan Request →

Energy & Mineral-Rights Property Financing

Hard Money on Texas Land With Mineral Rights,
Active Wells, or Pipeline Easements

Texas land almost never comes with a clean, unencumbered title once mineral rights enter the picture — surface and mineral estates are routinely severed, wells and pipelines cross property lines that predate current ownership, and conventional lenders often decline outright rather than untangle it. We underwrite the surface estate on its own merits and structure around what's actually below and across it.

55-65%

Max LTV

Quoted on your deal

Rate Range

6-18 mo

Term

10-15 days

Typical Close

Severed mineral estates are the norm across huge swaths of Texas — a prior owner or their heirs may still hold the mineral rights decades after selling the surface, and an active or historical well pad, tank battery, or pipeline right-of-way can sit on a parcel with zero effect on the surface owner's ability to use the land for anything else. The real underwriting question isn't whether minerals were ever severed — it's whether active surface operations, easements, or environmental exposure from oil and gas activity actually restrict the property's use and value today.

Common Scenarios We Finance

Severed Mineral Estate Purchase

Surface-only purchase where mineral rights were sold off or reserved generations ago

Active Well Pad on Site

Land with a producing or shut-in well that doesn't materially restrict the usable surface acreage

Pipeline Easement Encumbrance

Property crossed by a recorded pipeline or transmission easement affecting part of the tract

Post-Production Site Redevelopment

Former well site or tank battery land being repurposed after plugging and remediation

Straightforward to Finance

Mineral severance clearly documented in the title commitment with no open disputes

Any active surface use (well, easement) confined to a defined, mapped portion of the tract

No open environmental complaint or plugging liability tied to a well on the property

Usable surface acreage and access are unaffected by the mineral or easement interest

Needs Closer Review

Unplugged, abandoned well with no documented plugging record or bond in place

Active dispute over mineral ownership, lease terms, or easement scope clouding title

Pipeline or well infrastructure covering a large share of the usable surface acreage

Visible surface contamination or an open state environmental enforcement case tied to production

Why Banks Avoid Mineral-Encumbered Land

Most conventional lenders simply don't have an underwriting process built for severed mineral estates, active production, or pipeline easements — the title work alone is unfamiliar territory, so the file gets declined rather than reviewed. Hard money underwriting is built around the actual, current usability and value of the surface estate, which is why we can move on land a bank won't even open a file on.

Have Texas Land With Mineral or Energy Complications?

Send us the title commitment and a description of any wells, easements, or mineral reservations. We'll tell you what it qualifies for — usually same day.

Get Your Hard Money Quote →

Mixed-Use Property Hard Money

Mixed-Use Property Hard Money (Residential + Commercial)

Properties combining ground-floor retail or office with residential units upstairs fall into an underwriting gap — too commercial for a residential lender, too residential for a pure commercial one. Hard money doesn't split the difference: we finance the whole building against its combined value and income potential.

65-75%

Typical LTC/ARV

7-10 Days

Typical Close

Combined Income

Underwriting Basis

6-18 Mo

Typical Term

A classic mixed-use building — retail or office space on the ground floor with apartments above — is common in older Texas downtowns and urban infill neighborhoods, and it's exactly the kind of property that falls through the cracks of conventional financing. Residential lenders won't touch the commercial component; commercial lenders often want a higher down payment and shorter amortization than a residential-heavy building justifies. Hard money underwrites the property as a whole, against its combined as-is or after-repair value.

This makes mixed-use a strong fit for value-add investors: buy an underutilized building, renovate the commercial space to attract a tenant and update the residential units, then refinance into permanent financing once the whole property is stabilized and generating blended commercial-plus-residential income.

Common Uses

Common Scenarios

Purchasing a mixed-use building with vacant or underperforming ground-floor commercial space

Renovating residential units above an existing occupied commercial tenant

Converting upper-floor office space into residential units in an urban infill building

Repositioning a distressed mixed-use property in a downtown or transit-corridor location

Bridging a purchase while securing a commercial tenant for vacant ground-floor space

What Still Matters

Realistic combined rent roll — commercial lease rate plus residential unit rents

Zoning confirmed to allow the intended mixed-use configuration

A clear exit — permanent commercial/multifamily refinance once stabilized

Separate utility metering and code compliance for the commercial/residential split

Purchase, Renovate, Refinance

The typical path funds the acquisition and any renovation budget together, carries the property through lease-up on both the commercial and residential sides, and refinances into permanent financing once the building is generating stabilized, combined income — a straightforward path for an asset type conventional lenders routinely decline outright.

Buying or Renovating a Texas Mixed-Use Property?

Send us the building, unit mix, and renovation scope. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Mixed-Use Loan Request →

Distressed Property Investing

Mold, Fire & Water Damage Flips in Texas:
The Deals Most Investors Walk Away From

Mold remediation, fire-damaged properties, and flood-affected homes scare away the majority of fix-and-flip investors — which is exactly why they represent some of the best margin opportunities in the Texas market. Sellers are often desperate, prices are significantly discounted, competition is minimal, and buyers don't care about the history once the remediation is documented and the renovation is complete. Here's how to evaluate, fund, and execute these deals correctly.

Mold Remediation Flips — The Misunderstood Opportunity

Mold scares retail buyers and agents, which drives prices down dramatically — but mold is one of the most straightforward remediation categories. A licensed Texas mold remediation contractor, proper containment and removal protocol, a post-remediation clearance test, and a Certificate of Mold Remediation (required by TX law) turns a "mold house" into a fully marketable property. The discount often exceeds the remediation cost by 3–5×.

Typical Acquisition Discount

Cosmetic mold (bathroom/crawlspace) 5–15% below market

Moderate (1–2 rooms affected) 15–25% below market

Severe (structural, HVAC spread) 25–40% below market

Insurance-claim property 20–35% below market

Remediation Costs (TX Licensed Contractor)

Bathroom/laundry (contained) $1,500–$4,000

1–2 rooms (moderate) $5,000–$15,000

Full house (severe spread) $15,000–$40,000

HVAC mold cleaning $1,500–$4,000 extra

Texas Legal Requirements

TX Mold Assessor License Required for pre-test

TX Mold Remediation License Required contractor

Pre + post clearance test Both required

Certificate of Mold Remediation Must provide to buyer

Fire Damage Flips — Where the Real Discounts Live

Fire-damaged properties are priced aggressively because the damage is visible and intimidating — but cosmetic fire damage (smoke, soot, minor char) is far less expensive to remediate than it looks. The real risk is structural damage to framing, roof, or load-bearing walls, which requires a structural engineer before you commit. Get an engineer's report and a remediation bid before making any offer — once you have those two numbers, you can underwrite the deal precisely.

Damage Tiers & Acquisition Discount

Smoke/soot only (no flame) 15–25% below market

Partial room fire (contained) 25–40% below market

Major room fire (structural) 35–55% below market

Total loss (shell only) 60–75% below market

Remediation Cost Ranges

Smoke/soot cleaning + ozone $3,000–$10,000

Partial gut + rebuild $20,000–$55,000

Major structural rebuild $60,000–$120,000

Insurance proceeds (if inherited) May offset costs

Due Diligence Checklist

Structural engineer report Do first — $400–800

Remediation contractor bid Before offer

Check open insurance claim May transfer to buyer

Permit history pull Confirm no open permits

Water & Flood Damage Flips — Texas's Most Common Distressed Category

Texas is the most flood-prone state in the US — Harvey flooded 154,000 homes in Houston alone, and repeated flooding events have created a permanent supply of distressed flood-affected inventory. The key distinction is whether the property is in a FEMA Special Flood Hazard Area (SFHA). Flood zone properties require flood insurance for any mortgage, which reduces your buyer pool. Non-flood-zone water damage (burst pipes, AC leaks, roof leaks) is straightforward remediation with no zone stigma.

Water Damage Types & Discount

Plumbing leak (contained) 5–20% below market

Roof leak / storm water 15–30% below market

Flood (non-SFHA zone) 20–35% below market

Flood (SFHA Zone AE) 30–50% below market

Remediation Costs

Dry-out + mold prevention $2,000–$8,000

Drywall / flooring replacement $8,000–$25,000

Subfloor / structural drying $5,000–$15,000

Full flood gut + rebuild $30,000–$80,000

FEMA Zone Underwriting

SFHA Zone AE Flood ins req — buyer pool smaller

Zone X (no flood ins req) Full buyer pool

Elevation certificate Get one — reduces insurance

LOMA option Apply to remove from SFHA

Storm & Hail Damage Flips — Insurance Claims as Your Business Partner

Texas averages more hail events per year than any other state — DFW, San Antonio, and Houston are in the primary hail corridor. Storm-damaged properties often have unclaimed or partially claimed insurance proceeds that transfer to the buyer. A property with a valid open insurance claim for roof, siding, and windows can fund a significant portion of your renovation budget — but navigating insurance claims requires understanding the assignment of benefits process and Texas's specific rules on claim transfers.

Damage Types & Discount

Roof only (hail) 8–18% below market

Roof + siding + windows 15–25% below market

Roof + interior damage 20–35% below market

Wind/tornado structural 35–55% below market

Claim Transfer Process

Verify claim is open + active Request claim docs from seller

Assignment of claim TX allows — get attorney review

Public adjuster Can maximize payout post-close

Supplement claims Additional damage found in demo

Flip Math Example (DFW)

ARV $280,000

Purchase (storm damage) $185,000

Insurance claim value $28,000

Net rehab cost $22,000

Gross profit $45,000+

Why Damage Properties Create Outsized Returns for Prepared Investors

Less Competition

90% of investors and all retail buyers walk away from visibly damaged homes. You're competing against a fraction of the field — which translates directly into better prices and less multiple-offer pressure.

Motivated Sellers

Insurance hassles, inability to sell conventionally, displacement costs, and emotional fatigue make damage-property sellers highly motivated. All-cash hard money offers close fast — exactly what these sellers need.

Remediation = Value Creation

Every dollar of remediation you complete converts the property from "undiscoverable" (no mortgage lender will touch it) to "fully lendable." That transition alone adds 20–40% to the effective buyer pool size.

No Disclosure Stigma After Remediation

Once properly remediated with documentation, the property is disclosed as repaired — not hidden. Buyers accept remediated damage the same as any other renovation. A clearance certificate is actually a selling point.

Texas Disclosure Law: What You Must Tell Buyers

Texas requires disclosure of known material defects on the Seller's Disclosure Notice (SDN). As the flipping investor, you must disclose any prior mold, fire, or flood damage on the SDN — along with documentation showing it was professionally remediated. Attempting to conceal known damage is a DTPA violation and creates legal liability post-sale. The correct approach: disclose fully, provide all remediation documentation (certificate of mold remediation, insurance claim settlement, contractor warranties), and price accordingly. Transparent disclosures with full documentation rarely kill deals — hidden defects discovered post-sale definitely do.

Damage Property Deal in Texas? We've Funded Hundreds of Them.

Mold, fire, flood, storm — we fund distressed property flips that other lenders decline. We underwrite on ARV and your remediation plan, not on the current condition of the home. If you have a solid deal with a credible contractor and a realistic rehab budget, bring it to us. Same-day indication, close in 7–14 days.

Submit Your Damage Property Deal →

Multifamily Hard Money

Multifamily Hard Money: Duplexes to 5+ Unit Apartment Value-Add

Multifamily hard money splits into two very different underwriting boxes depending on unit count — 2-4 unit properties finance like residential investment property, while 5+ unit properties finance like true commercial real estate. Knowing which box your deal falls into changes everything about how it's underwritten.

The line between "residential" and "commercial" multifamily isn't cosmetic — it's a hard underwriting boundary set by how appraisals, financing, and even fire code requirements work. Properties with 2-4 units are appraised using comparable sales, just like a single-family house, and can transition into 30-year fixed DSCR financing on exit. Properties with 5 or more units are appraised on income and cap rate — much closer to how an office building or retail strip gets valued — and exit into commercial term loans, not residential-style mortgages. We fund both, but the deal structure and exit strategy differ meaningfully.

The Two Tiers

Residential-Style Underwriting

2-4 Unit Multifamily

Duplexes, triplexes, and fourplexes. Valued via comparable sales. Bridge-to-DSCR exit strategy works cleanly here since DSCR lenders treat these like single-family rentals for financing purposes.

85-90%

Purchase LTV

100%

Rehab Funded

Commercial-Style Underwriting

5+ Unit Apartment Value-Add

Small apartment buildings and garden-style complexes. Valued via NOI and cap rate — rent increases from renovation directly increase appraised value. Exit is a commercial term loan or agency (Fannie/Freddie small balance) refinance.

70-80%

LTC

1.15x+

Exit DSCR

Why the 5-Unit Line Matters for Your Exit

Investors who buy a 5+ unit property expecting to refinance it like a duplex are frequently surprised — those loans don't exist in the same product category. On the commercial side, exit financing is underwritten off the property's income after your renovation and lease-up, meaning the appraisal directly rewards the rent increases you actually achieve, unlike a 2-4 unit comp-based appraisal where your improvements only help insofar as they resemble what other nearby duplexes sold for. This is why experienced value-add investors specifically target the 5+ unit tier — the appraised value math works in their favor once the business plan executes.

On the flip side, the commercial tier also carries more underwriting friction: rent rolls, T-12 financials, and a defined business plan for the renovation and lease-up timeline are all required before we'll structure the loan. A 2-4 unit purchase can often close on a simpler file.

Have a Multifamily Value-Add Deal?

Duplex to 30-unit complex — tell us the unit count and business plan, and we'll structure the right financing box for it.

Get Your Multifamily Quote →

Ground-Up Construction

New Construction Hard Money in Texas:
How Builders and Developers Get Projects Funded Fast

New construction hard money fills the gap between a permitted lot and a finished house ready to sell or rent. Banks are slow, rigid, and often unwilling to touch spec builders without an established track record. Private construction lenders move in days, not months — and fund based on the project's merit, not just the borrower's biography.

Fix & Flip HML (for comparison)

Loan basisPurchase price + rehab draws

Inspection cadenceDraw at milestones (2–4 draws)

Permit required?For structural work, yes

Typical term6–12 months

LTV basis75% of ARV (as-fixed value)

Risk profileMedium — existing structure

New Construction HML

Loan basisLand + construction budget (as draws)

Inspection cadenceDraw at each phase (4–6 draws)

Permit required?Yes — full building permit required at close

Typical term12–18 months

LTV basis65–70% of completed value (ARV)

Risk profileHigher — no existing collateral until built

How Construction Draw Schedules Work

Funds are not released in a lump sum — they're advanced in phases as construction milestones are completed and verified by an independent inspector. Here's a typical 5-draw schedule for a 1,800 SF Texas spec build:

Draw 1
Foundation

Lot grading, footings poured, slab formed and poured. Inspector verifies slab dimensions and reinforcement. Typically released 2–3 days after inspection request.

20%

Draw 2
Framing

Wall framing, roof trusses, sheathing, housewrap. Structure is fully enclosed. Inspector confirms framing is per-plan and shear walls are in place.

20%

Draw 3
Rough MEP

Mechanical (HVAC rough), electrical (panel, rough wiring), plumbing (rough-in). All must pass city inspection before draw is released.

20%

Draw 4
Drywall

Drywall hung, taped, and finished. Exterior finishes (brick, stucco, siding) substantially complete. Trim and cabinets may begin.

20%

Draw 5
Final / CO

Certificate of Occupancy issued. Final plumbing, electrical, HVAC trim-out complete. Landscaping done. Appliances installed. Last draw released on CO.

20%

Who Uses Construction Hard Money in Texas

🏗️

Spec Builders (1–5 homes/yr)

Small-volume builders who build and sell without a pre-committed buyer. Hard money funds the spec, which is listed on MLS during or after construction. Exit is the retail sale, which retires the loan.

🏠

Custom Home Builders

Builder has a signed contract with the end buyer but needs construction financing before the buyer's permanent loan can close. Hard money bridges the build period; buyer's mortgage pays it off at completion.

🔄

Tear-Down / Rebuild Flippers

Acquired a lot with a deteriorated structure — demo + rebuild is more cost-effective than a renovation. Hard money funds the land (or equity in the acquired property) plus the full construction budget.

🏘️

ADU / Garage Apartment Builders

Adding an accessory dwelling unit to an existing property to rent or sell. Construction hard money covers the ADU build; the existing home provides additional collateral for the lender's security.

🏢

Small Commercial Ground-Up

Strip center, office suite, or medical building being constructed speculatively or for the builder's own business. Commercial construction hard money at 55–65% of completed value for experienced developers.

🌿

BTR (Build-to-Rent)

Building specifically to hold as a long-term rental — BRRRR at scale. Construction HML funds the build; DSCR loan replaces it at stabilization. Growing rapidly in DFW and Houston exurbs.

What You Need to Qualify

Permitted lot — building permit must be in hand at or before closing

Signed construction contract with licensed general contractor

Detailed budget: line-item cost breakdown for every phase

Completed value appraisal (ARV appraisal on the finished home)

10–30% equity in the project (land + any paid construction costs)

Builder track record — 1+ completed project strongly preferred

Exit strategy: pre-sold, active listing plan, or DSCR refi underway

Common Reasons Applications Get Declined

No permit — speculative budget with no approved plans isn't fundable yet

Unlicensed contractor — Texas requires licensed GC for new construction; lenders verify

Budget with no contingency — construction always runs over; 10% contingency is minimum

Vague cost breakdown — "construction: $180,000" with no line items isn't a budget

First-time builder in a high-price-point market — risk profile is too high without a track record

ARV not supportable — comparable sales don't exist for the planned finish level in that neighborhood

Sample Construction Budget: 1,800 SF Spec Home, North DFW

Construction Loan Ready to Fund in 5–7 Business Days

Bring your permit, your GC contract, and your line-item budget. We'll have a term sheet within 24 hours and close in under two weeks. We fund spec builds, custom contracts, tear-down rebuilds, and BTR projects across DFW, Houston, Austin, San Antonio, and surrounding markets.

Submit Your Build →

No-Seasoning Cash-Out Refinance

No-Seasoning Cash-Out Refi: Pull Equity the Day You Finish the Rehab

Most conventional and even many DSCR lenders require 6-12 months of "seasoning" before they'll refinance based on a property's new, post-rehab value. That delay ties up flipper capital for months after the work is done. No-seasoning programs let you refinance at the new appraised value immediately.

Seasoning requirements exist because most lenders are nervous about "value manufactured on paper" — they want time to pass and, ideally, a sale or rental history to confirm the new value is real before they'll lend against it. For a flipper who just spent 60-120 days and real rehab dollars pushing a property from purchase price to full ARV, a 6-12 month seasoning requirement means sitting on dead equity for half a year or longer before it can be pulled out and redeployed into the next deal. That's the single biggest capital-velocity killer in the fix-and-flip-to-hold business model.

How No-Seasoning Refinancing Works

A no-seasoning cash-out refinance uses a new appraisal reflecting the completed rehab — not the original purchase price — as the basis for the new loan amount, immediately after the work is finished and the certificate of occupancy (if required) is issued. We verify the completed scope of work against the original rehab budget, confirm the appraisal reflects real, permitted improvements rather than cosmetic-only changes, and can close the refinance within days of the appraisal, not months after.

Standard Seasoning Requirement

Wait Period

6-12 months

Value Basis

Purchase price (early) → new value (later)

Capital Velocity

1-2 flips/year on same capital

No-Seasoning Refinance

Wait Period

Days after rehab completion

Value Basis

New appraised (post-rehab) value

Capital Velocity

3-5+ flips/year on same capital

Good Fit

Rehab is fully complete with permits closed out where required

Improvements are permanent and appraisal-supportable — new kitchen, roof, systems, added square footage

Investor wants to hold and rent the property rather than sell immediately

Investor needs capital redeployed quickly into the next acquisition

Better Suited to a Sale or Standard Refi

Rehab is cosmetic-only with limited appraised value lift

Investor's exit strategy is a retail sale, not a long-term hold

Local comps are too thin to support an aggressive post-rehab appraisal

Just Finished a Rehab?

Get the new appraisal moving and pull your equity out now — not six months from now.

Start Your Cash-Out Refi →

Non-Arms-Length & Related-Party Sales

Buying From Family or a Business Partner?
Hard Money Doesn't Flinch at Related-Party Deals

Selling a property to a family member, a business partner, or an LLC you're both invested in is exactly the kind of transaction conventional lenders often restrict or decline outright. Hard money underwrites the asset and the exit — the relationship between buyer and seller isn't automatically a dealbreaker.

Independent

Appraisal Still Required

Case-by-Case

Gift-of-Equity Handling

7-14 days

Typical Close

Asset-Based

Underwriting Focus

Every related-party file is reviewed individually. Below-market pricing, gift-of-equity documentation, and title chain-of-ownership all get looked at up front — this isn't a workaround for skipping normal diligence, it's financing structured around a legitimate family or partner transaction.

Conventional lenders often add extra scrutiny — or decline entirely — when the buyer and seller are related by family or business ties, worried about inflated values or disguised cash-out. We still require an independent, arms-length appraisal and clean title regardless of the relationship, but we don't treat the relationship itself as an automatic red flag the way a conventional file often does.

Common Related-Party Scenarios

Family Property Transfers

Buying a parent's or sibling's investment property at fair market or below-market value

Business Partner Buyouts

One partner buying out another's share of a jointly owned investment property

LLC Member-to-Member Sales

Restructuring ownership between members of the same investment LLC

Estate & Trust Purchases

An heir purchasing a property out of a family estate or trust

Structures That Work

Independent appraisal supports the agreed sale price, whatever the relationship

Any gift of equity is clearly documented, not disguised as an inflated sale price

Title is clean with a clear chain of ownership between the related parties

Buyer has a credible exit — refinance or resale — independent of the relationship

Needs Closer Review

Sale price significantly above appraised value with no documented justification

Undisclosed liens or encumbrances tied to the related seller's other obligations

No independent appraisal obtained, relying only on the parties' agreed number

Transaction structured mainly to extract cash rather than transfer real ownership

Why Conventional Lenders Struggle With These Deals

Bank underwriting guidelines are often written around fraud patterns seen in related-party transactions, and many institutions simply route around the complexity by declining rather than reviewing case-by-case. Hard money's asset-based approach means a legitimate family or partner sale with clean documentation can close on a normal timeline instead of stalling in a conventional underwriter's exception queue.

Buying From a Family Member or Partner?

Send us the details of the transaction and relationship. We'll tell you quickly what documentation gets it closed.

Get Your Hard Money Quote →

Deal Finding Guide

How Texas Fix & Flip Investors
Find Off-Market Deals

The best deals never hit the MLS. Here are the 7 channels experienced Texas investors use to find distressed properties before they go to auction — and the exact scripts that work.

📬

Direct Mail to Pre-Foreclosures

High volume, proven

Pull the Notice of Default (NOD) list from each county clerk weekly. Mail a simple, handwritten-style letter to every homeowner in pre-foreclosure. These homeowners are 3–4 payments behind — many want to sell before the courthouse steps to save their credit and walk away with something.

Get lists from: county clerk's office (most TX counties post NODs online), PropStream, ATTOM Data, or BatchLeads. Mail weekly — timing is everything in pre-foreclosure. Response rate: call for today's rate.

🚗

Driving for Dollars

Best for hyperlocal targeting

Drive specific neighborhoods looking for visual signs of distress: overgrown lawn, boarded windows, deferred maintenance, stacked mail, cars that haven't moved. Note the address, skip-trace the owner, mail or call. DealMachine app makes this systematic — take a photo, it skip-traces automatically.

Best neighborhoods to drive: transitional areas adjacent to already-gentrified blocks. 1 mile out from where Starbucks just opened. Follow new construction into adjacent streets.

⚖️

Probate & Estate Sales

Lower competition, highly motivated

When a homeowner dies, the estate often needs to liquidate quickly — heirs may live out of state, disagree on value, or simply want cash fast. Probate filings are public record. Search your county clerk's probate records weekly and reach out to estate attorneys and administrators directly.

Build relationships with local probate and estate planning attorneys. A monthly $50 gift card and a simple 1-page "I buy houses" flyer in their office often yields 2–4 leads per quarter.

🏠

Absentee Owner Campaigns

Large list, consistent results

Absentee owners (property address differs from mailing address) are the most likely to be neglecting maintenance, open to selling at a discount, or already looking for an exit. Pull absentee owner lists from county appraisal district records or data providers. Filter for high equity (owned 10+ years) for best conversion.

Stack filters: absentee owner + owned 10+ years + assessed below market + out-of-county mailing address = the best possible list. Typical response rate: call for today's rate for well-crafted mailers.

🏗️

Contractor Referral Network

High-quality, low cost

Plumbers, electricians, and handymen service homes of owners who are overwhelmed, elderly, or barely keeping up. They often know months before anyone else when a homeowner is considering selling. Set up a simple referral fee arrangement — $500–$1,500 cash for a referral that leads to a closed deal.

Visit local ACE Hardware, Home Depot contractor desks, and trade supply houses. Leave cards. Sponsor a contractor appreciation breakfast in a target neighborhood once per quarter.

🌐

Facebook "We Buy Houses" Groups

Zero cost, immediate results

Texas has thousands of active "We Buy Houses" Facebook groups by city. Post regularly: simple, no-hype offers to buy houses in any condition. Respond to sellers who post their own situations. The sellers here are already motivated — they came to you.

Post in 10+ local groups every week. Simple format: "Looking to buy homes [city]. Any condition. Cash close. If you know someone interested, DM me or share this post." Attach your POF letter to serious conversations.

🤝

Wholesaler Relationships

Ready-to-go deal pipeline

Wholesalers find distressed properties, put them under contract, and sell the contract to investors — they take a $5K–$20K fee. You pay slightly over direct, but you skip the marketing, skip-tracing, and negotiation. For investors who want deal flow without deal-finding labor, wholesalers provide a consistent pipeline.

Find wholesalers at your local Real Estate Investors Association (REIA) meeting. DFW, Houston, SA, and Austin all have active REIA groups. Let them know your buy criteria: neighborhood, price point, min equity, and your 24-hour decision ability.

Visual Signs of a Motivated Seller — What to Look For

These signals indicate a property with a distressed owner — not necessarily a distressed structure. Both are opportunities:

🌿

Overgrown lawn / dead landscapingOwner not actively managing. Possible absentee, illness, financial stress, or early-stage neglect.

📦

Stacked mail / newspapersEither abandoned or owner has been away — often precedes foreclosure or estate situation.

🪟

Boarded windows or tarpsInsurance claim, storm damage, or vacancy. Property likely not maintained — value-add opportunity.

🏚️

Deferred exterior maintenancePaint peeling, gutters falling, fascia rotting. Owner in over their head financially or physically unable to maintain.

🚗

Multiple cars, small homeMultigenerational stress. Possible motivation to sell and move to different arrangement.

💧

Staining below roof lineActive or past leak damage. Major turn-off to conventional buyers — turn-on for investors who can price it in.

🏗️

Half-finished projectRenovation that stopped. Owner ran out of money or energy. Classic hard money opportunity — finish and sell or refi.

🪦

Estate sale signsDeath in household. Time pressure, out-of-state heirs, need for quick close. One of the most motivated situations you'll find.

Direct Mail Script That Gets Responses

Simple, sincere, and specific beats slick every time. This template works for Texas pre-foreclosure and absentee owner campaigns:

[Owner First Name],

My name is [Your Name]. I'm a local real estate investor based in [City] and I'm looking to purchase a home in your neighborhood at [Property Address].

I buy homes directly from owners — no agents, no fees, no repairs needed. I can close in as little as 2 weeks with cash or confirmed financing, or on whatever timeline works best for you.

If you have any interest in discussing a sale — even if you're not sure yet — I'd welcome a brief call. There's zero obligation and I'll give you a straight answer within 24 hours.

You can reach me at [Phone] anytime. I live and work in [City] and have closed [X] homes in this area.

[Your Name]
Local Investor | [Phone] | [Email]

Found a Deal? We Can Fund It in 7–14 Days.

Once you have a property under contract, we can move. Submit the address, purchase price, and your estimated ARV — we'll have a term sheet back in 24 hours.

Get Funded Fast →

Remote Investing

Out-of-State Investors: How to Flip Texas Houses Remotely
Without Flying In for Every Deal

California, New York, and Illinois investors have been moving capital into Texas fix-and-flip deals for a decade — lower acquisition prices, no state income tax, strong appreciation, and a landlord-friendly legal environment make Texas one of the top destination markets for out-of-state real estate capital. Here's the exact system to execute flips in Dallas, Houston, San Antonio, and Austin without living in Texas.

State Income Tax

Texas has no state income tax on capital gains from property sales. A California flipper pays 13.3% state tax on flip profit — that same profit is 0% in Texas. On a $60,000 flip profit, that's $7,980 kept in Texas vs lost in California.

$180K

Avg DFW Entry Price

DFW suburban SFR entry prices for flippable product range $150K–$220K — a fraction of California or NYC pricing. Lower entry = lower risk, more deals with the same capital, and greater margin cushion when unexpected costs arise.

+8.2%

TX Population Growth (2020–2026)

Texas added 2.4M residents since 2020 — the most of any state. More people = more housing demand = stronger resale market for flipped properties. DFW and Houston are adding 100,000+ residents annually.

45–60

Average Days to Sell (Flipped)

Well-priced, fully renovated SFR in DFW, Houston, and SA suburbs typically sells in 45–60 days. Austin is slower since the 2022 correction but still under 90 days for priced-right product. Fast sale = fast capital recycle.

GC License Required

Texas does not require a general contractor license at the state level — only individual trade licenses (plumber, electrician, HVAC). This makes it easier to build a contractor network quickly vs states with strict GC licensing requirements.

24 hrs

Hard Money Close Speed

Texas hard money lenders can approve in 24 hours and close in 5–10 business days. Out-of-state investors compete on speed — local wholesale deals and off-market properties are often won or lost based on who can close first.

Your Remote Texas Flip Team: Who You Need Before Deal #1

🏠

Investor-Friendly Agent

Buyer's agent who works with investors — pulls comps, writes fast offers, understands ARV and margin. Ask: "How many investor transactions have you closed in the last 12 months?"

🔨

General Contractor

Licensed, insured GC who has flipped with out-of-state investors before. Experience with video walkthroughs and remote communication is essential. Verify references from other remote investors specifically.

🔍

Property Inspector

Pre-purchase inspection + ongoing renovation milestone checks. Your eyes on the ground. Get one who does investor inspections ($200–400 per visit) and communicates via video and detailed reports.

🏛️

Title Company

TX title company familiar with remote/e-notary closings. Texas allows Remote Online Notarization (RON) — you can close on a Texas property without flying in. Confirm RON capability before choosing title.

💼

Property Manager

If your exit strategy includes a BRRRR hold, have a PM lined up before close. If flipping, PM is optional — but having one as a backup gives you flexibility if the market softens mid-project.

⚖️

TX Real Estate Attorney

One-time consultation on Texas contracts, mechanic's lien law, and entity setup. Texas uses deed of trust (not mortgage) — slight differences from some Northern/Midwestern states that investors should understand.

💰

Hard Money Lender

Pre-approved hard money relationship before you find the deal. A lender who knows you, your market, and your contractor can approve a deal same-day. Being unknown to your lender costs you deals.

🤝

Wholesaler Network

Off-market deals come through wholesalers. Join Texas real estate investing Facebook groups, BiggerPockets for your target city, and local REIA meetups (via Zoom). The best deals don't hit MLS.

Texas vs. Your Home Market: Why the Numbers Work

Factor	California (LA/Bay Area)	New York (NYC Metro)	Texas (DFW / Houston)
Entry flip price	$600K–$1.2M+	$500K–$900K+	$150K–$280K
State capital gains tax	13.3%	10.9%	0%
Hard money availability	Competitive	Competitive	Very active market
Avg days on market (flipped)	30–45 days (competitive)	45–75 days	45–60 days
Typical flip margin	8–12% (compressed)	10–15%	12–20%
Population trend	Flat / slight outflow	Flat	+8.2% since 2020
Landlord laws (if holding)	Tenant-favorable	Very tenant-favorable	Landlord-friendly

The 6-Step System for Your First Remote Texas Flip

Choose One Market and Go Deep

Don't spread across Dallas, Houston, and Austin simultaneously. Pick one submarket — South Dallas, NE Houston, or NW San Antonio — and learn it completely. Know the neighborhoods, the comparables, the typical rehab costs, and the buyer profile before deploying capital.

Build Your Team Before You Need It

Interview 3 agents, 3 GCs, and get pre-approved with a hard money lender before you make your first offer. The team that's in place when the deal comes is the team that wins the deal — building relationships under time pressure costs you money.

Make Your First Visit for the First Deal

Fly to Texas for your first deal — walk the property, meet your GC in person, attend the inspection, and visit comparable sold properties. You'll learn more in 2 days on the ground than 2 months of online research. Every deal after that can be remote.

Use Video Walkthroughs at Every Stage

Pre-offer video walkthrough with your agent, inspection video from your inspector, weekly renovation progress videos from your GC, and final walkthrough video before listing. Never pay a draw without video confirmation the milestone is complete.

Close Remotely via RON

Texas Remote Online Notarization (RON) allows you to sign closing documents from anywhere via video notary. Confirm your title company offers RON before going under contract. Most major Texas title companies now offer this as standard.

Price to Sell — Don't Chase ARV

Out-of-state investors sometimes get attached to their ARV projection and overprice the listing. Price your flip 3–5% below the highest comp to generate multiple offers and a fast close. Speed of sale matters more than getting the last dollar when you're paying hard money interest remotely.

Out-of-State Investor Ready to Break Into Texas? We've Done This Before.

We've funded hundreds of remote investors flipping in DFW, Houston, San Antonio, and Austin. We understand how remote deals work, what makes them succeed, and where the risks are. Pre-approval is fast — tell us your target market, experience, and capital available and we'll give you a same-day indication of what we can fund.

Get Pre-Approved for Your Texas Flip →

Owner-Builder Financing

Owner-Builder Hard Money: Financing When You're Acting as Your Own GC

Experienced investors who self-manage renovations instead of hiring a general contractor save real money on markup — but a lot of hard money lenders simply won't fund owner-builder projects, treating GC-less deals as automatically higher risk regardless of the borrower's actual track record.

Track Record

Required to Qualify

65-70%

Typical LTC (vs. GC-led)

Draw-Based

Same Inspection Process

Most hard money lenders default to requiring a licensed general contractor on every project because it's a simple risk-management shortcut — a GC on the job reduces the chance of the project stalling out from the borrower's own inexperience or overextension. But that blanket rule ignores investors who have successfully self-managed multiple renovations and know the trades, the permitting process, and the budget realities as well as any GC would.

We evaluate owner-builder requests on the borrower's actual track record — completed projects, relationships with subcontractors, and realistic budgeting — rather than a flat rule against it. A first-time investor proposing to act as their own GC is a very different risk than an investor with five completed flips doing the same thing, and our underwriting reflects that difference.

What We Look At

Strong Owner-Builder Profile

Two or more completed renovation/flip projects with documented before/after results

Established relationships with licensed subcontractors for major trades (electrical, plumbing, HVAC)

Realistic, itemized scope of work and budget, not a rough estimate

Understanding of local permitting requirements and inspection scheduling

What Still Matters

First-time investors typically need a licensed GC of record even if self-managing day-to-day

Licensed subcontractors still required for permitted electrical/plumbing/HVAC work regardless of GC status

Draws still release against completed, inspected work — no shortcut on the verification process

A realistic contingency budget matters more without a GC's markup buffer built in

Draws Work the Same Way

Owner-builder projects follow the same draw-based funding structure as GC-led projects — work completes, gets inspected, and the corresponding draw releases. The difference is who's coordinating the trades and managing the schedule, not how the money flows. Experienced self-managing investors often move faster than a GC-led project specifically because they're not waiting on a general contractor's own scheduling bottlenecks.

Planning to Self-Manage Your Next Renovation?

Send us your project history and the scope of work. We'll tell you what qualifies as an owner-builder deal.

Submit Your Loan Request →

Points & Fees

Points & Fees on a Hard Money Loan — What's Actually Negotiable

"Points" get quoted like a fixed cost, but the real number on your term sheet moves with deal quality, experience, and loan size more than most first-time borrowers expect. Here's what actually drives the number, and where there's real room to negotiate.

A point is 1% of the loan amount, charged up front at closing — on a $300,000 loan, 2 points is $6,000. Points exist because a hard money lender's return comes from a mix of the interest rate and the upfront fee, not the rate alone, since these are short-term loans where interest income over 6-12 months alone often wouldn't cover the lender's underwriting and servicing cost. Typical hard money points run 1.5-4, with the exact number driven by loan size, leverage, and risk profile more than any fixed schedule.

What Actually Moves the Number

Larger loans typically see lower point percentages (though a larger dollar amount) since fixed underwriting costs spread across more principal. A track record of completed deals with this lender, or hard money generally, usually earns a real discount on the next deal — repeat, reliable borrowers cost less to underwrite and are a known quantity. Lower leverage (a bigger down payment or more equity in the deal) reduces the lender's risk and often reduces points along with it. And a shorter requested term can sometimes trade for a point reduction, since it shortens the lender's capital-at-risk window.

Where Negotiation Actually Works — and Where It Doesn't

Asking a lender to simply lower points with no other change rarely works — it's not a haggling exercise. What does work: offering more skin in the game (lower requested leverage), bringing a completed deal history to the table, or trading points for rate (some lenders will let you buy down points by accepting a slightly higher rate, or vice versa, depending on how long you expect to hold the loan). The math on that trade depends entirely on your actual hold period — a longer hold favors lower points/higher rate, a fast flip favors the opposite.

Are points paid out of loan proceeds or out of pocket at closing?

Almost always financed into the loan itself rather than paid separately out of pocket — confirm this specifically on your term sheet.

Do points get refunded if I pay the loan off early?

No — points are an upfront origination cost, not prepaid interest, so they're not refundable on an early payoff regardless of how quickly you exit.

Is a lower-points offer from another lender always the better deal?

Not necessarily — compare the full package (points, rate, term, draw fees, extension fees) rather than points in isolation. A low-points, high-rate loan can cost more on a longer hold than the reverse.

Want a Real Points-and-Rate Quote on Your Deal?

Tell us the loan size, leverage, and your track record — we'll give you an actual number, not a generic range.

Get Your Hard Money Quote →

Lending Options Compared

Hard Money vs. Private Money:
What's the Difference and Which Do You Need?

These terms are used interchangeably — but they describe meaningfully different things. Understanding the distinction helps you approach the right source, at the right time, with the right expectations.

Option A

Hard Money Lender

Option B

Private Money Lender

What it is

A company or fund that specializes in short-term real estate loans. Institutional capital deployed through a lending business with underwriting staff, loan templates, and defined programs.

An individual (or small group) who lends their own money directly to borrowers. Could be a wealthy friend, a family office, or a dentist who invests in real estate debt.

Capital source

Pooled investor capital, fund capital, or balance sheet. Scalable — can do 50+ loans simultaneously.

Individual's personal or family money. Limited pool — typically 1-5 active loans at any time.

Underwriting

Formal application, credit pull, appraisal, title, draw schedule. Standardized process.

Relationship-based. Terms vary deal by deal. May require little or no formal documentation.

Rate

Call for today’s rate — fixed programme pricing

Negotiable deal by deal — the relationship sets the price

Points

2–4 points (standard)

0–2 points (often less)

Speed

7–14 business days (standard process)

3–7 days possible (one decision-maker)

Reliability

High — institutional process, committed capital

Variable — can decline late if personal situation changes

Transparency

Clear loan docs, defined terms, recorded liens

Terms more informal; docs can be simpler or more complex depending on the lender

Best for

Investors who need certainty, scale, and a repeatable process

Investors who have strong relationships and can offer terms that appeal to an individual

Use Hard Money When:

You need certainty — you can't risk a last-minute "no" from a friend with cold feet

You're doing 3+ deals per year and need a repeatable, scalable process

Your deal needs draw advances for rehab — hard money lenders have structured draw systems

You want full documentation and a clear loan structure for your partners or LLC

You're new and don't yet have private money relationships

The deal is larger than any individual in your network can fund

Use Private Money When:

You have a strong existing relationship with the lender and trust is established

You can offer terms that benefit the private lender (secured first-lien, 8–10% return vs. their savings account)

Speed beyond 7 days is critical and you need a 3-day close

Your deal has characteristics a hard money lender may not like (unusual property type, thinner margins)

You want to offer the lender equity participation in addition to interest

You've built a track record and can offer referrals and recurring deal flow

How Experienced Investors Use Both in Combination

The most sophisticated Texas investors don't choose one or the other — they build a financing stack that uses each tool where it performs best:

Start with hard moneyFirst 3–5 deals: use institutional hard money to build your track record. Fast close, clear process, no relationship dependency. Pay the extra points as tuition — the structure protects you.

Build your private money list in parallelEvery deal, every REIA meeting, every conversation is an opportunity to meet someone with capital who wants 8–10% secured by real estate. Document your deal results. Show your track record. Plant seeds early.

Use private money for gap capitalOnce you have private lenders, use their capital as your equity piece — they fund your down payment and you fund the hard money deal. Now you're doing deals with zero of your own cash. The private lender gets first position secured by a property; you get the equity spread.

Refer private lenders to hard money lendersPrivate lenders often want to grow beyond funding one deal at a time. Introduce them to institutional hard money lenders who need capital partners. This builds goodwill and keeps your relationship strong even when you don't have a deal for them.

We're Your Institutional Hard Money Partner

When you need certainty, speed, and a deal that won't fall apart two days before closing — that's us. Submit your deal and get a term sheet in 24 hours. You can always bring your own private money equity — we just need to be in first position.

Get a Term Sheet →

Off-Market Deal Sourcing

Probate & Estate Sale Flipping in Texas:
The Off-Market Channel Most Investors Ignore

Probate properties — real estate left in an estate after someone passes — are consistently among the most discounted deals in Texas. Heirs often live out of state, have no interest in managing the property, and want a fast cash sale at a discount to avoid the hassle. The investors who learn this channel access deals before they ever hit the MLS.

No MLS Competition

Probate deals are sourced before listing — directly with the executor or heirs. You're often the only buyer at the table. No bidding wars, no competing offers, no escalation clauses.

Motivated by Default

Heirs paying ongoing property taxes, insurance, and maintenance on a house they don't want is a carrying cost that creates urgency. The longer probate drags, the more motivated they become.

Older Homes = Equity

Texas estates typically involve homes owned for 20–40 years with minimal or no mortgage. The equity available to discount the purchase price is substantial — heirs often accept 70–75% of market value for speed and certainty.

Consistent Deal Flow

Texas probate filings are public records, available at every county court. The death rate and asset transfer cycle are predictable. This is not a boom-and-bust deal source — it's a consistent, year-round inventory channel.

Below-Market Condition

Homes occupied by elderly owners for decades often have deferred maintenance — a cosmetic problem that creates a pricing discount but rarely a structural one. These are usually solid old-construction homes, not teardowns.

Non-Arm's-Length Dynamics

Heirs aren't emotionally attached to the price a stranger would be — they're emotionally attached to the process being over. Investors who make it easy (cash, fast close, no contingencies) consistently win deals at lower prices.

How Texas Probate Works and Where You Fit In

Texas has one of the most investor-friendly probate processes in the country — most estates qualify for a simplified "muniment of title" or independent administration that moves faster than you'd expect:

WEEK 1–4Probate Filed at County CourtExecutor or administrator files with the county court where the deceased lived. Becomes public record immediately — this is when you can identify the property and executor from probate filings.

WEEK 2–8Letters Testamentary / Letters of Administration IssuedCourt grants the executor authority to act. Once issued, the executor legally can sign contracts and deed real estate. This is when deals become executable.

ANYTIME AFTER STEP 2Executor Sells the PropertyIn Texas independent administration (the most common form), the executor can sell without court approval at every step. Sign a purchase contract, close at title company, executor signs the deed. Much faster than judicial supervision states.

YOUR WINDOWClose and Begin RehabProbate sale closes like any other real estate transaction — title company, title insurance, same process. Hard money loan funds the acquisition and rehab draws. Your clock starts the day you close.

How to Find Probate Deals in Texas

County probate court records — search by county, filter for recent filings (estates, decedents). File at courthouse or search county clerk online portals.

PropStream, ATTOM, and DataTree — data aggregators that pull probate filing data and cross-reference with property records. Filter for properties in your target zip codes.

Drive for dollars in target neighborhoods — look for signs of vacancy, deferred maintenance, overgrown yards on older homes. Cross-reference with public records.

Estate sale companies — estate liquidators handle the contents, often know when the house is going to be sold. Build relationships with 2–3 estate sale operators in your market.

Probate attorneys — attorneys who specialize in estate administration are fiduciaries for the estate. Build a reputation as a reliable cash buyer who closes fast and they'll call you first.

Direct mail to executors — pull names and addresses from probate filings, send a letter explaining you buy houses quickly for cash. Response rates of 2–5% are common in this channel.

How to Build Relationships That Get You Called First

Be known as the investor who closes on time, every time — executor reputation spreads to other attorneys and family members

Don't nickel-and-dime after inspection — make your offer and honor it; heirs remember investors who tried to renegotiate

Handle the paperwork — many executors have never sold a house through probate; guide them through the process professionally

Be patient — probate can take 3–6 months to reach the point of sale. Plant seeds early and follow up respectfully

Offer references — executors are fiduciaries who can be held personally liable; having attorney references reduces their risk of working with you

Send thank-you notes after every closed transaction — simple gestures build lasting referral relationships in this niche

How to Structure Your Probate Offer

What Executors Care About Most

Certainty: No financing contingency. Proof of funds or hard money pre-approval letter showing you can close without a bank.

Speed: 14–21 day close is highly attractive — it ends the carrying cost burden quickly.

As-Is condition: Estate property is sold as-is. Executors can't make repairs — they don't know the property's full history and aren't authorized to spend estate money on improvements.

No showings required: Professional buyers who make an offer after one walk-through vs. retail buyers requiring multiple showings and buyer's agent tours simplify the process enormously.

What to Include in Your Offer Letter

Purchase price: Based on ARV × 70% − rehab. Be fair — lowball offers get rejected and burn the relationship.

Earnest money: $2,500–5,000 shows you're serious. More than a typical wholesale offer, less than a retail buyer's 1–3%.

Closing timeline: "We will close within 14 days of receiving clear title from the estate." Flexible on their timeline, fast on yours.

Proof of funds: Hard money pre-approval letter or bank statement showing the down payment is available. Without this, executors (who are attorneys) won't take you seriously.

Probate Deal Under Contract? We Close in 14 Days.

Executors love cash buyers who close fast. We can be your proof-of-funds source and your closing capital. Pre-approval takes 24 hours — bring us the address, your purchase price, and your rehab scope. We'll have your commitment letter ready before your offer meeting with the executor.

Get Pre-Approved Now →

Proof-of-Funds & Cash-Offer Advantage

Win Bidding Wars With a Cash-Equivalent Offer
Backed by Real Proof of Funds

In a competitive off-market or auction deal, the buyer with financing contingencies loses to the buyer who can close fast with no financing hiccups. A hard money pre-approval and proof-of-funds letter lets you make an offer that looks — and closes — like cash, without actually tying up your own capital.

24-48 hrs

Pre-Approval Turnaround

No Contingency

Financing Clause Needed

7-10 Days

Close After Contract

Same-Day

POF Letter Issued

Sellers and listing agents in a multiple-offer situation weigh certainty of close as heavily as price — sometimes more heavily. A conventional buyer with a 30-45 day financing contingency is a real risk to a seller who's already fielding a cash offer at a similar price. A hard money proof-of-funds letter, backed by an actual underwriting pre-approval rather than a generic bank letter, tells the seller your offer closes on the timeline you wrote, no financing fallout risk.

This matters most on off-market deals, wholesaler assignments, foreclosure auctions, and estate sales where sellers specifically favor — or require — proof of funds before they'll even entertain an offer. We issue real, underwritten proof-of-funds letters (not a boilerplate template) tied to your actual approved purchase price and property, so agents and title companies treat it as credible.

How It Works

Before You Make an Offer

Get pre-approved for a purchase price range based on your typical deal profile

Receive a proof-of-funds letter you can attach to any offer, same day

Waive the financing contingency with real backing, not a bluff

Move as fast as an all-cash competitor on off-market and auction deals

After Your Offer Is Accepted

Final underwriting confirms the specific property, ARV, and scope of work

Title and appraisal/valuation move in parallel to protect your close date

Funds table-fund at closing — no gap between "approved" and "funded"

For Investors Who Move on Off-Market and Auction Deals

If you're regularly bidding against cash buyers — wholesaler assignments, courthouse steps, estate sales, distressed off-market leads — a standing hard money pre-approval is the difference between competing seriously and getting passed over before you even get a chance to underwrite the deal yourself.

Want a Proof-of-Funds Letter in Hand Before Your Next Offer?

Get pre-approved once, then move fast on every deal after. Usually ready within 24-48 hours.

Get Pre-Approved Now →

Property Tax Lien Transfers

Behind on Property Taxes? A Section 32.06
Tax Lien Transfer Can Stop the Clock

Texas Tax Code Section 32.06 lets a licensed property tax lender pay a delinquent property tax bill directly to the county on the owner's behalf, then take an assignment of the county's own tax lien. It's a completely different product and a completely different lender license than a hard money purchase or rehab loan — and investors who inherit back taxes on an acquisition need to understand how the two stack.

Ch. 351

Separate TX Lender License

First-Priority

Lien Regardless of Transfer

Same-Day

Payoff to the County

Case-by-Case

Stacking With Hard Money

A property tax lien in Texas already outranks every other lien on the property, mortgage or otherwise, the moment taxes go unpaid — that priority doesn't change when the lien is transferred. Under Section 32.06, a licensed property tax lender pays the taxing authority in full (taxes, penalties, and accrued interest), the county assigns its lien to that lender, and the property owner signs a new note and deed of trust to repay the tax lender directly, usually on more workable terms than the county's own delinquency schedule. Making these loans requires a Property Tax Lender license under Texas Finance Code Chapter 351 — a distinct regulatory category from the license a hard money or mortgage lender holds.

Where This Shows Up in an Investor's Deal

Subject-To / Distressed Acquisitions

Buying a property where back taxes are already owed and a tax sale is a real near-term risk

Inherited or Estate Property

Heirs who can't personally cover an accumulated tax bill before a sale or refinance can close

Rehab-in-Progress Properties

An existing rental or flip where taxes fell behind during a vacancy or cash-flow gap

Payoff at Refinance

Rolling an existing tax lien transfer loan into a hard money or long-term refinance payoff

Where a Tax Lien Transfer Fits

A specific delinquent tax balance exists with the county, not just a general cash shortfall

The property has enough equity to support both the tax lien and any existing or new hard money financing

There's a clear exit — sale, refinance, or stabilization — within the tax lender's repayment term

The transfer closes before a tax sale is actually filed, not after

Needs a Different Approach

The county has already posted the property for a tax sale with no time left to close a transfer

Combined debt (existing liens plus the tax lien) exceeds what the property can realistically support

No licensed property tax lender has quoted terms yet — this isn't something a hard money lender originates directly

The real problem is negative cash flow, which a tax lien transfer only delays rather than solves

How We Fit In

We don't hold a Property Tax Lender license ourselves — that's a separate regulatory track from hard money lending — but we regularly work alongside investors who already have, or need to arrange, a Section 32.06 transfer on a property they're financing with us. If back taxes are part of your acquisition or refinance, tell us the balance and timeline up front so we can size the hard money piece correctly around it.

Back Taxes Complicating a Deal?

Tell us the tax balance and the county's timeline. We'll tell you how it fits with hard money financing.

Get Your Hard Money Quote →

Post-Purchase Tax Planning

Texas Property Tax Protest —
What Investors Need to Budget For After a Reassessment

Texas has no state income tax, which is exactly why the state leans so heavily on property tax to fund schools, cities, and counties — rates among investors' first questions when comparing Texas to other markets. For a hard money borrower, the practical version of that trade-off shows up the year after you buy or renovate: the county appraisal district reassesses, your new basis often reflects the purchase price or the improved value, and the tax bill (and your DSCR on refinance) moves with it.

CAD

County Appraisal District Sets Value

~May 15

Typical Protest Deadline*

Informal → ARB

Two-Step Protest Process

No 10% Cap

On Non-Homestead Property

Every Texas county has an appraisal district (CAD) that sets the appraised value each property is taxed on, independent of your loan-to-value or purchase price on paper — but in practice, a recent arm's-length sale or a documented renovation is exactly the kind of evidence a CAD uses to justify a higher assessment the following year. Unlike an owner-occupied homestead, which benefits from a 10% annual appraisal increase cap, investment property carries no such cap — a reassessment can move by whatever the CAD believes the market supports, in one year.

The Protest Process, at a High Level

The county mails a Notice of Appraised Value, typically in the spring, and the protest deadline is generally May 15 or 30 days after the notice date, whichever is later — confirm the exact date on your notice, as it varies by county and year. Filing (Form 50-132 or your county's online portal) starts an informal review with a CAD appraiser, where a large share of protests get resolved without a formal hearing. If the informal review doesn't produce a number you can live with, the case proceeds to a hearing before the county's Appraisal Review Board (ARB), an independent panel that hears evidence from both sides. Beyond the ARB, Texas law also allows binding arbitration or a judicial appeal for cases that don't resolve at the board level — routes most investors only pursue on higher-value commercial assets where the stakes justify the added cost.

Comparable Sales

Recent, similar sales that support a lower value than the CAD's assessment

Repair Cost Evidence

Contractor estimates or invoices for deferred maintenance the CAD's mass appraisal didn't account for

Income Approach

Rent roll and operating expenses, most persuasive on multifamily and commercial income property

Equity Comparison

Evidence similar properties in the same neighborhood are assessed lower per square foot

Why This Matters for Hard Money Borrowers

A reassessment after purchase or renovation directly raises the tax escrow on your eventual DSCR or conventional refinance

Higher taxes lower the DSCR ratio a permanent lender calculates — worth stress-testing before you count on a specific refi rate/LTV

A protest filed and resolved before your refinance appraisal can materially change your qualifying numbers

Some counties allow prior owners' pending protests to carry forward — check with the CAD at closing, don't assume

What We Don't Do

We're not a substitute for a property tax consultant or attorney — many investors use a contingency-fee protest firm

We can't tell you what your specific county's deadline or process is — verify directly with your CAD each year

A protest doesn't affect your hard money loan's rate or terms directly — it affects your long-term hold economics and refi numbers

Financing a Purchase or Renovation That Will Trigger a Reassessment?

Ask us how a likely tax increase factors into your refinance exit before you're locked into a strategy — it's a conversation worth having early.

Get Your Hard Money Quote →

*Protest deadlines and procedures vary by county and tax year — always confirm the exact date on your Notice of Appraised Value or with your county appraisal district. This is general information, not tax or legal advice.

Quiet Title & Clouded-Title Bridge

Quiet Title & Clouded-Title Bridge Financing

Properties with a clouded title — unresolved heirship claims, an old unreleased lien, conflicting deed history — often sell far below market because most buyers and lenders won't touch them until a quiet title action resolves the ownership question. Hard money can fund the acquisition and carry the property through that legal process, capturing a deal others can't close.

55-65%

Typical LTV/ARV

6-18 Mo

Typical Term

Attorney-Coordinated

Title Resolution

A clouded title — competing heirship claims after an intestate death, an old lien that was never properly released, gaps in the chain of title, or a boundary/ownership dispute — makes a property effectively unsellable and unfinanceable through conventional channels until a quiet title lawsuit resolves the question and a court issues a clean judgment. That legal process can take months, which is exactly why these properties often trade at a steep discount to buyers willing to take on the risk and the wait.

Hard money lenders comfortable with title risk can fund a purchase where the acquisition itself is structured around, or contingent on, quiet title resolution — sometimes closing with a title insurance exception for the disputed matter, sometimes funding once a quiet title judgment is already in hand but before the property has fully stabilized or refinanced. Every deal like this needs a real estate attorney experienced in quiet title actions coordinating closely with the lender and title company.

Common Uses

Common Scenarios

Acquiring a property with unresolved heirship claims from an intestate estate

Purchasing after a quiet title judgment clears an old, previously unreleased lien

Buying a property with a chain-of-title gap requiring legal resolution before conventional financing is possible

Financing once litigation resolves, bridging to a stabilized refinance

What Still Matters

A real estate attorney experienced in Texas quiet title actions is essential, not optional

Title insurance with a specific exception for the disputed matter — confirm exactly what's covered

Realistic legal timeline — quiet title actions can run longer than expected

Total cost (purchase + legal + carrying costs) still needs to support the deal's exit math

An Advanced Strategy for Experienced Investors

Clouded-title deals aren't for first-time investors — they require legal sophistication, patience, and a lender comfortable with title risk most won't touch. For experienced investors who know how to work through the process with the right attorney, they're a real source of deeply discounted acquisitions that conventional buyers simply can't compete for.

Working a Deal With a Title Issue?

Send us the property and the title situation. We'll tell you whether it's financeable and what the structure looks like.

Submit Your Loan Request →

Rate Transparency

Hard Money Rates Explained —
What You're Actually Paying

Most lenders quote an interest rate and bury the real costs in the fine print. Here's every component of a hard money loan's cost — and how to compare lenders honestly.

Rate

Interest Rate (Annual)

The percentage charged on the outstanding loan balance per year. Unlike banks, we charge simple interest — you only pay on what you borrow, not front-loaded. We quote your rate on your deal; call 800-547-9081 for today’s rate.

Quoted on your deal — call 800-547-9081

2pts

Origination Points

A percentage of the loan amount paid upfront at closing. 2 points on a $150K loan = $3,000. Points reduce the lender's exposure and compensate for the short loan term. Compare total points carefully — some lenders quote 1 pt but charge hidden processing fees that add up to the same thing.

Typical range: 1–4 points | Our range: 2–3 points

1pt

Extension Fees

If your project runs over and you need to extend the loan beyond the original term (typically 12 months), most lenders charge 1 additional point per 3–6 month extension. Always negotiate extension options before you sign — you may need them.

Common: 1 point per 6-month extension | Some lenders: 2 points

$750–1.5K

Processing & Underwriting

Admin fees for appraisal coordination, title review, and underwriting processing. These are legitimate costs — but watch for excessive "doc prep" or "wire" fees stacked on top. Total admin fees should not exceed $1,500 on a standard deal.

Normal: $750–$1,500 | Red flag if: $2,000+ in misc fees

Prepayment Penalty

Good news: most hard money loans have no prepayment penalty. You can pay off early — and you should, because every day the loan is outstanding costs you money. Confirm "no prepay" in writing before closing. Some lenders impose a minimum 3-month interest charge.

Industry standard: no prepay penalty | Watch for: minimum interest clauses

15–25%

Required Down Payment

Hard money lenders typically lend 75–85% of purchase price (not ARV) for acquisitions. The down payment comes from you — it's the equity cushion that protects the lender. Higher down payment = lower rate in most cases. Some lenders allow cross-collateralization if you have other properties.

Typical: 15–25% of purchase price | Our minimum: 20%

Real Cost Scenarios — By Deal Size

Select a deal size to see the full cost breakdown including all fees:

$150K Deal

$300K Deal

$600K Deal

Loan Terms

Purchase Price$150,000

Loan Amount (85% LTV)$127,500

Your Down Payment$22,500

Interest RateQuoted on your deal

Hold Time5 months

Total Cost Breakdown

Origination (2 pts)$2,550

Interest (5 months)$6,375

Processing/Fees$1,000

Total Cost of Capital$9,925

Cost as % of ARV ($220K)4.5%

Loan Terms

Purchase Price$300,000

Loan Amount (80% LTV)$240,000

Your Down Payment$60,000

Interest RateQuoted on your deal

Hold Time6 months

Total Cost Breakdown

Origination (2 pts)$4,800

Interest (6 months)$14,400

Processing/Fees$1,200

Total Cost of Capital$20,400

Cost as % of ARV ($450K)4.5%

Loan Terms

Purchase Price$600,000

Loan Amount (75% LTV)$450,000

Your Down Payment$150,000

Interest RateQuoted on your deal

Hold Time8 months

Total Cost Breakdown

Origination (2 pts)$9,000

Interest (8 months)$34,500

Processing/Fees$1,500

Total Cost of Capital$45,000

Cost as % of ARV ($850K)5.3%

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"Hard money is too expensive"

Compared to what? A bank loan at today's rates over 30 years costs vastly more interest in total than a hard money loan held for 6 months. The question isn't the rate — it's the total cost for the hold period vs. the profit generated. A 12% rate on a $150K loan for 5 months = $7,500 in interest. If the deal generates $40K profit, the rate was irrelevant.

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"I should shop for the lowest rate"

Rate is one variable. The lowest-rate lender who takes 4 weeks to give you a term sheet and 8 weeks to close will cost you more in carrying costs and missed deals than a slightly higher-rate lender who closes in 12 days. Also check: points, fees, extension terms, and whether they can actually fund (some "lenders" are brokers who place your deal with their network).

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"The interest rate is my APR"

No. APR includes points and fees amortized over the loan term. On a 12-month hard money loan with 2 points, the APR is approximately 14–16%, not 12%. This isn't deceptive — it's how short-term lending works. Always ask for the total all-in cost over your expected hold period, not just the stated rate.

Get a Real Quote — All Fees Disclosed Upfront

We don't do bait-and-switch. The term sheet we issue shows rate, points, and every fee before you commit to anything. Submit your deal and see the full picture in 24 hours.

Get My Rate Quote →

Recourse & Personal Guarantees

Recourse Loans & Personal Guarantees:
What Texas Investors Should Actually Expect

Hard money is asset-based lending, but "asset-based" doesn't mean non-recourse. Most hard money loans — even to an LLC borrower — carry a personal guarantee. Here's what that actually obligates you to, what's negotiable, and what almost never is.

Full Recourse

Standard on Most Hard Money

LLC Borrower

Entity Is Still Primary Obligor

Case-by-Case

Limited-Recourse Carve-Outs

Written Note

Guarantee Terms Must Be Documented

Not legal advice. Guarantee and recourse terms are set loan-by-loan in the note and guaranty agreement. Review your specific documents with your own attorney before signing — this is educational context, not a substitute for legal review.

New investors sometimes assume that because hard money underwriting leans heavily on the property itself — its value, its equity cushion, its exit plan — the loan must be non-recourse, meaning the lender's only recourse in a default is the collateral. In practice, the opposite is far more common: most hard money lenders require a full personal guarantee from the individual(s) behind the borrowing entity, meaning your personal assets can be pursued if the property alone doesn't cover the debt after a default.

What "Personal Guarantee" Actually Obligates You To

Full Recourse

Guarantor is personally liable for the entire remaining balance, not just the collateral shortfall

Limited / "Bad-Boy" Carve-Out

Personal liability triggered only by specific acts — fraud, waste, or misrepresentation

Joint & Several

With multiple guarantors, each one can be pursued individually for the full amount owed

Entity-Only (Rare)

No personal guarantee at all — typically means lower leverage and higher underwriting scrutiny

When Guarantee Terms Are More Negotiable

Experienced investor with multiple deals already closed and paid off with the same lender

Conservative loan sizing relative to property value with a real equity cushion

Multiple guarantors able to share exposure jointly rather than one person carrying it all

Track record and relationship substitute for some of the risk a guarantee otherwise covers

When Full Recourse Is Standard, No Exceptions

First-time borrower with the lender and no closed track record yet

Higher-leverage structures, ground-up construction, or elevated project risk

Entity borrower with little or no independent assets of its own

Loan sized heavily against projected after-repair value rather than current as-is value

Why This Isn't Just Fine Print

A personal guarantee is one of the most consequential pages in a hard money loan package, and it's worth understanding before you're signing at the closing table under time pressure. Ask any lender directly, early, what recourse structure applies to your deal — a lender who explains it plainly up front is a very different signal than one who glosses over it until documents arrive.

Want to Know Exactly What You're Signing?

Ask us directly what guarantee structure applies to your deal before you submit — we'll tell you plainly, with nothing buried in closing documents.

Get Your Hard Money Quote →

Reverse 1031 Exchange Bridge

Reverse 1031 Exchange Bridge Financing

Found the perfect replacement property but haven't sold your relinquished property yet? A reverse 1031 exchange lets you buy first and sell second — but it requires financing built for that exact structure, since conventional lenders and standard forward-exchange financing don't fit a reverse exchange's requirements.

180 Days

Max Exchange Period

7-14 Days

Typical Close

EAT-Titled

Property Structure

A standard forward 1031 exchange sells the relinquished property first, then has 45 days to identify and 180 days to close on a replacement property. A reverse exchange flips that order — you acquire the replacement property first, then have up to 180 days to sell the relinquished one — which is often the only way to secure a strong replacement property in a competitive market without losing it while your current property is still on the market.

Reverse exchanges require an Exchange Accommodation Titleholder (EAT) to hold title to either the new or old property during the exchange period, per IRS safe-harbor rules, and most conventional lenders won't finance a property titled to an EAT entity rather than the ultimate buyer. Hard money bridges exactly this gap — funding the replacement property acquisition through the EAT structure, then getting repaid or refinanced once the relinquished property sells and the exchange completes.

How This Works

What This Requires

A qualified intermediary/exchange accommodator experienced in reverse exchange structures

A lender comfortable financing property titled to an EAT entity, not the ultimate owner

A realistic marketing and sale timeline for the relinquished property within the 180-day window

Coordination between your CPA/1031 exchange attorney and the lender before the transaction starts

What Still Matters

If the relinquished property doesn't sell within 180 days, the exchange fails and tax deferral is lost

Exchange accommodator and legal fees add cost beyond a standard purchase — budget for them

Financing terms need to account for the full potential 180-day hold, not an optimistic faster timeline

Not every hard money lender is set up for EAT-titled property — confirm this specifically before proceeding

Securing the Deal Without Losing the Exchange

Reverse exchanges exist specifically for investors who can't afford to lose a strong replacement property while waiting to sell their current one — hard money bridge financing is what makes acting on that opportunity possible without walking away from either the deal or the 1031 tax deferral.

Need to Buy Before You Sell for a 1031 Exchange?

Send us both properties and your exchange timeline. We'll tell you what the bridge financing looks like.

Submit Your Loan Request →

Room Addition & Sq Ft Expansion

Room Addition & Square Footage Expansion Hard Money

Adding a bedroom, bathroom, or expanding the existing footprint of a property is one of the most reliable ways to increase both appraised value and rentability — but it's a different project than a cosmetic rehab, and the financing needs to fund real structural construction, not just paint and flooring.

70-75%

Typical LTC/ARV

Draw-Based

Construction Funding

7-14 Days

Typical Close

6-12 Mo

Typical Term

A room addition or square footage expansion — adding a bedroom, converting a garage, extending the footprint with a new wing — is structurally a small construction project, not a renovation. It involves foundation work, framing, roofing tie-in, and full permitting, which is a meaningfully different risk and inspection profile than a cosmetic flip's paint-and-flooring scope. Hard money lenders comfortable with real construction, not just rehab, are what this kind of project actually needs.

Done well, an addition can be one of the highest-return improvements available on an under-sized property — going from a 2-bedroom to a 3-bedroom, or adding a bathroom to a property that's short one relative to comparable listings, can move a property into a meaningfully higher rent or resale bracket for a fraction of the cost of buying a larger property outright.

Common Uses

Common Scenarios

Adding a bedroom or bathroom to bring a property in line with comparable local listings

Converting an attached garage into finished, code-compliant living space

Extending a home's footprint to add significant square footage

Finishing a basement or attic into legal, permitted living space

What Still Matters

Full permitting required for structural work — no shortcuts on this, even under time pressure

A contractor experienced in additions, not just cosmetic rehab, matters more here than usual

Realistic budget including foundation and structural contingencies, which run higher than cosmetic work

Comparable sales data confirming the added square footage actually moves value the amount projected

Structural Work Needs Structural-Grade Financing

Treating an addition project like a standard cosmetic flip — underestimating the budget, skipping permits, using a crew without structural experience — is one of the most common ways investors blow their numbers on this project type. Financing built for real construction, with draws tied to actual inspected milestones, keeps the project honest from day one.

Planning a Room Addition or Expansion Project?

Send us the property, addition plans, and budget. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Loan Request →

Renovation Planning

How to Build a Rehab Scope of Work
That Gets Your Hard Money Loan Approved

Your scope of work is the single most important document in your hard money loan application. A weak SOW = underwriter questions, draw delays, and budget overruns. Here's how experienced Texas investors do it right.

What Lenders Look for in a Scope of Work

Line-item detail, not categoriesDon't write "kitchen — $15,000." Write "demo existing cabinets, install 12 LF lower cabinets at $180/LF, install granite countertop 24 SF at $65/SF, new stainless sink and faucet $450, tile backsplash 18 SF at $12/SF = $14,106." Line items give your underwriter confidence in the number.

Contractor signature and license numberLenders want the SOW signed by a licensed general contractor (if applicable) or accompanied by a signed bid from a qualified sub. "My cousin will do it for $5K" doesn't work — they need to see someone who can execute and be held accountable.

ARV comps attachedYour SOW should always be accompanied by 3 active comps (sold in last 90 days, within 0.5 miles, same bed/bath) supporting your after-repair value. The SOW shows the cost; the comps justify the price you'll sell at.

10–15% contingency lineInclude a contingency line — typically 10–15% of total rehab. Lenders who see this know you've done deals before. Investors who omit it often run out of money mid-renovation when the inevitable surprise appears.

🏚️

Exterior & Structure

Typical: $5,000–$40,000

High Impact ▾

Line Item	Unit	Avg TX Cost	Notes
Roof replacement	Per SQ (100 SF)	$450–$650/SQ	3-tab vs. architectural shingle
Roof repair / partial	Per job	$800–$3,500	Flashing, valley, small section
Foundation repair (piers)	Per pier	$400–$600/pier	Typical TX home needs 12–20
Exterior paint	Per SF of exterior	$1.50–$3/SF	Prep, prime, 2 coats
Siding replacement	Per SF	$4–$12/SF	Hardie board vs. vinyl
Window replacement	Per window	$300–$700/window	Supply + install, standard size
Garage door replacement	Per door	$900–$1,800	Single vs. double; opener included
Driveway / concrete	Per SF	$6–$12/SF	Depends on demo needed

🔌

Electrical & Plumbing

Typical: $3,000–$25,000

Lender Focus Area ▾

Line Item	Unit	Avg TX Cost	Notes
Panel upgrade (100→200A)	Per job	$1,800–$3,500	Required for modern code
Full rewire (older home)	Per SF	$3–$6/SF	Pre-1980 homes often need this
Partial rewire / repairs	Per job	$800–$3,500	Kitchen/bath circuits, outlets
Plumbing re-pipe (PEX)	Per SF	$4–$8/SF	Full supply line replacement
Water heater replacement	Per unit	$900–$1,800	Tank vs. tankless; TX code
Sewer line repair/replace	Per LF	$150–$250/LF	Scope camera first (~$300)
HVAC replacement	Per ton	$1,200–$1,800/ton	3-ton avg TX home = ~$4,500–6K

🍳

Kitchen

Typical: $8,000–$35,000

High ROI ▾

Line Item	Unit	Avg TX Cost	Notes
Cabinet demo	Per job	$300–$800	Disposal included
New cabinets (RTA/stock)	Per LF	$120–$200/LF	10 LF typical small kitchen
New cabinets (semi-custom)	Per LF	$200–$350/LF	For higher ARV neighborhoods
Granite/quartz countertop	Per SF	$45–$85/SF	Fabrication + install
Tile backsplash	Per SF	$8–$20/SF	Subway tile vs. decorative
Appliance package	Per set	$1,800–$4,500	SS range/dishwasher/microwave/fridge
Sink + faucet	Per set	$350–$900	Undermount vs. drop-in

🚿

Bathrooms

Typical: $3,500–$15,000 per bath

High ROI ▾

Line Item	Unit	Avg TX Cost	Notes
Full gut (demo, tile, fixtures)	Per bath	$6,000–$15,000	Master bath higher end
Tile shower (install)	Per SF	$12–$22/SF	Wall tile only; floor extra
Vanity replacement	Per vanity	$400–$1,200	Supply + install
Toilet replacement	Per unit	$250–$500	Standard efficiency
Tub reglazing	Per tub	$400–$700	Alternative to replacement
Tub/shower replacement	Per unit	$1,500–$3,500	Alcove vs. freestanding

🏠

Interior Finishes

Typical: $4,000–$20,000

Cosmetic ▾

Line Item	Unit	Avg TX Cost	Notes
Interior paint (full house)	Per SF living area	$1.50–$2.50/SF	Walls, ceilings, trim; 2 coats
LVP flooring (install)	Per SF	$4–$7/SF	Material + labor; prep extra
Carpet (bedrooms)	Per SF	$2.50–$5/SF	Mid-grade; pad included
Tile (kitchen/bath floors)	Per SF	$6–$14/SF	12×12 or 18×18 standard
Interior doors	Per door	$150–$350/door	Prehung, paint-grade
Trim / baseboard replace	Per LF	$3–$6/LF	5-¼" colonial vs. craftsman
Light fixtures (per room)	Per fixture	$100–$350	Standard flip-grade

Scope of Work Template — What to Send Your Lender

Copy this format and fill in your numbers. Line items, costs, and a clear total are what underwriters need to approve your loan and structure your draw schedule:

Property & Project Overview

Property Address: [123 Main St, Houston TX 77001]

Purchase Price: [$XXX,000] | ARV (from comps): [$XXX,000]

General Contractor: [Name, License #, Phone]

Estimated Start Date: [MM/DD/YYYY] | Est. Completion: [MM/DD/YYYY]

Exterior / Structure

Roof replacement — 22 SQ architectural shingle: $11,000

Foundation repair — 14 piers at $475: $6,650

Exterior paint — prep, prime, 2 coats: $3,200

Mechanical (Electrical / Plumbing / HVAC)

Panel upgrade 100A → 200A: $2,400

HVAC replacement — 3-ton, 16 SEER: $5,200

Water heater — 50-gal, gas: $1,100

Kitchen

Demo existing / dispose: $600

RTA cabinets — 14 LF @ $145/LF: $2,030

Quartz countertop — 28 SF @ $62/SF: $1,736

Stainless appliance package: $2,100

Bathrooms (2)

Master bath full gut + tile shower: $8,400

Hall bath vanity/toilet/paint: $1,800

Interior Finishes

LVP flooring — 1,200 SF @ $5.50/SF: $6,600

Interior paint — 1,500 SF @ $2/SF: $3,000

Fixtures, doors, trim: $2,800

Subtotal & Contingency

Subtotal: $58,616

Contingency (12%): $7,034

TOTAL REHAB BUDGET: $65,650

SOW Red Flags That Slow or Kill Your Approval

These are the mistakes that trigger lender callbacks, stall your underwrite, or result in draw disputes:

🚩

Lump-sum categories with no detail"Rehab — $45,000" tells us nothing. Every line item needs to be broken out — rooms, materials, labor, quantities. Vague scopes get returned for revision.

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No contingency lineInvestors who don't include contingency usually haven't done enough deals to know that surprises happen on every one. We expect to see 10–15% contingency in every SOW.

🚩

Unrealistic cost estimatesIf your kitchen SOW says "$2,400 total" in a market where materials alone cost $4,000, we know the budget will be blown. We'd rather fund a realistic number than have you stop mid-renovation.

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No contractor informationAn SOW with no contractor name, license, or contact information signals the investor is planning to self-GC without experience. Licensed contractor (or detailed sub-bids) = required.

🚩

Scope doesn't match the property photosWe review your walkthrough photos against your SOW. If photos show rotten soffits, a sagging floor, and a 30-year-old panel, your SOW better include those items — otherwise we'll add them.

🚩

No timelineA rehab with no start and end date looks like a deal that hasn't been thought through. Include milestones — demo complete by week 2, rough-in inspections week 4, etc.

Ready to Submit Your Rehab Deal?

Attach your scope of work to your application. We'll review it, confirm the draw structure, and have a term sheet back within 24 hours. Texas residential and small commercial.

Submit Your SOW →

Second Lien / Subordinate Position

Second Lien & Subordinate Position Hard Money Financing

Have a low-rate first mortgage you don't want to touch, but need capital for a renovation or the next acquisition's down payment? A hard money second lien lets you tap your equity in subordinate position, without disturbing the favorable first mortgage already in place.

Combined 65-75%

Max CLTV (1st + 2nd)

7-14 Days

Typical Close

Subordinate Position

Behind Existing 1st Lien

6-18 Mo

Typical Term

Investors who locked in a low-rate first mortgage years ago often don't want to refinance it just to access equity — doing so means giving up that favorable rate on the entire loan balance to get cash out on top of it. A second lien in subordinate position solves this: it sits behind the existing first mortgage, lets the first mortgage's rate and terms stay untouched, and gives the investor access to the additional equity for a specific project or acquisition.

This requires a lender's title policy and first-mortgage lender consent (many first mortgages don't restrict subordinate financing, but it's worth confirming), plus combined loan-to-value underwriting across both liens together, not just the new second position. It's a more complex structure than a standard first-lien hard money loan and works best for investors with substantial equity and a clear, specific use for the capital.

Common Uses

Common Scenarios

Funding a renovation without disturbing a favorable existing first mortgage rate

Accessing equity for a down payment on the next acquisition

Bridging a short-term capital need while a longer-term refinance plan is still being arranged

Preserving an assumable or otherwise favorable existing loan while still tapping equity

What Still Matters

Confirm the existing first mortgage doesn't prohibit subordinate financing before proceeding

Combined loan-to-value across both liens still needs to fit conservative underwriting limits

A second lien position carries more lender risk, which shows up in the rate compared to first-lien financing

A clear exit or repayment plan matters even more with two liens on the same property

Preserving a Good First Mortgage While Still Accessing Equity

A second lien structure is a specific tool for a specific situation — an investor with real equity and a favorable existing first mortgage who needs capital without disrupting it. It's not the right fit for every deal, but for the right investor it's meaningfully more efficient than a full cash-out refinance.

Have Equity You Want to Access Without Refinancing Your First Mortgage?

Send us the property, your existing first mortgage terms, and what you need the capital for. We'll tell you what's possible.

Submit Your Loan Request →

Self-Directed IRA Fix-and-Flip Financing

Flipping Inside a Self-Directed IRA: What's Different (and the UBIT Trap)

A Self-Directed IRA or Solo 401(k) can legally fund a fix-and-flip using hard money — but flipping inside a retirement account carries a real tax wrinkle most investors don't hear about until it's too late: the IRS can treat frequent, active flipping inside an IRA as Unrelated Business Taxable Income (UBIT), taxed at trust rates even though the account itself is otherwise tax-advantaged. This is a genuinely different animal from a buy-and-hold rental in an IRA.

Non-Recourse Only

IRA-Owned Loans Cannot Carry a Personal Guaranty

UBIT Risk

Frequent Flips May Be Taxed as a Trade or Business

No Sweat Equity

You (or Disqualified Persons) Cannot Do the Work Yourself

Custodian-Directed

Funds Flow Through Your IRA Custodian, Not You

Because the IRA itself is the borrower, any hard money loan into the account has to be non-recourse — no personal guaranty from you as the account holder is allowed. That changes the underwriting: we're lending against the deal and the IRA's own funds/equity contribution, not your personal credit or income, and loan sizing tends to run more conservative as a result.

What We Look At

Single-Flip IRA Deals

One-off fix-and-flip funded through a Self-Directed IRA or Solo 401(k) LLC

Checkbook Control IRA-LLCs

Deals structured through an LLC owned by the IRA for faster transaction control

Multi-Deal IRA Flip Programs

Repeat flippers using the same retirement account across several projects — UBIT exposure grows with frequency

Roth vs. Traditional IRA Flips

Structure differs by account type; UBIT liability applies to both if triggered

Strengthens the Deal

A knowledgeable Self-Directed IRA custodian already set up and experienced with real estate

Genuine third-party contractors doing all rehab work — no sweat equity from you or disqualified persons

A tax professional already consulted on UBIT exposure for the flip frequency planned

Sufficient IRA cash reserve to cover its share of the non-recourse loan's equity requirement

Slows the Deal

Account holder planning to personally do renovation work (a prohibited transaction)

No custodian experience with real estate/non-recourse lending, causing closing delays

A pattern of frequent flips with no UBIT tax planning in place

Disqualified persons (spouse, parents, children) involved in the deal in any capacity

Why This Isn't the Same as an IRA Rental Property

A buy-and-hold rental purchased inside an IRA is generally straightforward from a tax standpoint (leverage can still trigger UDFI, but ongoing rental income itself usually isn't UBIT). Flipping is different — the IRS looks at frequency and intent, and a retirement account running several flips a year starts to look like an active trade or business rather than passive investing. Talk to a tax professional about your specific flip cadence before scaling this inside an IRA.

Flipping Through a Self-Directed IRA?

Tell us about your account structure and the deal. We'll structure non-recourse hard money around what your IRA custodian actually allows.

Get Your Hard Money Quote →

Self-Storage Hard Money

Self-Storage Acquisition & Conversion Hard Money

Buying an underperforming self-storage facility to reposition, or converting an existing building (warehouse, retail box, industrial shell) into a self-storage operation? Hard money funds the acquisition and improvement work fast, against the facility's after-repositioning value — not its current, often distressed, condition.

70-75%

Typical LTC

Draw-Based

Conversion Funding

7-14 Days

Typical Close

6-18 Mo

Typical Term

Self-storage is one of the most consistently performing commercial real estate categories, which means value-add opportunities — underperforming facilities with weak management, or vacant industrial/retail buildings suited for conversion — move fast once identified. Conventional lenders want a stabilized, leased-up facility before they'll fund, which doesn't work for an acquisition that's underperforming precisely because it needs new management, or a conversion project that isn't a storage facility yet at all.

Hard money funds the purchase and the improvement budget together — new security systems, climate control, unit reconfiguration, signage, or a full building conversion — with draws releasing as work completes. Once occupancy stabilizes at market rates, the loan typically refinances into permanent commercial financing.

Common Uses

Common Scenarios

Acquiring an underperforming self-storage facility to reposition under new management

Converting a vacant warehouse, retail box, or industrial building into self-storage units

Adding climate-controlled units or expanding an existing facility's unit count

Upgrading security, access control, and signage to compete with newer facilities nearby

Consolidating a small portfolio of self-storage properties under one refinance

What Still Matters

Realistic stabilized occupancy and rate projections backed by local market comps

Detailed scope of work and contractor bids for any conversion or renovation

A clear exit — refinance into permanent commercial financing or sale at stabilization

Zoning confirmed to allow self-storage use before closing on a conversion project

From Acquisition Through Stabilization

The typical path funds the purchase and improvement budget together, releases draws as milestones complete, and carries the property through lease-up to market occupancy. Once the facility is stabilized and generating consistent rental income, it refinances into a conventional commercial mortgage sized off the stabilized rent roll.

Acquiring or Converting a Texas Self-Storage Property?

Send us the property, scope of work, and budget. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Self-Storage Loan Request →

Senior Living Hard Money

Hard Money for Senior Living & Assisted Living Facilities

Acquiring, renovating, or repositioning a small assisted living home, memory care facility, or board-and-care property in Texas — hard money bridges the gap between an off-market acquisition and licensed operation, when a bank won't touch a facility that isn't yet cash-flowing.

Why Banks Struggle With This Property Type

A conventional lender wants to underwrite a stabilized, licensed, occupied senior care facility with two years of financials — but the best acquisition opportunities in this space are almost always the opposite: a distressed or underperforming home, a facility mid-renovation, or a new operator taking over a license transfer. That gap between "what a bank wants" and "what the deal actually looks like" is exactly where hard money fits. We finance the real estate — a licensed or licensable assisted living home, memory care unit, or board-and-care property — based on the property and the exit, not on trailing operator financials that don't exist yet.

Texas's Health and Human Services Commission licensing process for Type A and Type B assisted living facilities can take months, which means a buyer often needs to close on the real estate well before the facility is fully re-licensed and generating income. Hard money's speed lets an operator secure the property first and work the licensing timeline in parallel, rather than losing the deal waiting on conventional underwriting.

What Qualifies

Acquisition of an existing licensed or license-eligible assisted living facility

Renovation/repositioning of a distressed senior care property

Bridge financing during a license transfer or operator change

Board-and-care homes and small memory care conversions

What Lenders Look At

Exit strategy — refinance into an SBA or conventional healthcare-real-estate loan once stabilized

ADA and fire/life-safety compliance costs factored into the renovation budget

Operator experience or a clear management plan for the licensed operation

Realistic timeline against the actual HHSC licensing process, not an assumed fast-track

Acquiring or Repositioning a Senior Care Facility in Texas?

Get a same-day term sheet on the real estate — we'll work the timeline around your licensing process, not around ours.

Get Your Free Quote

Short Sale Acquisition Hard Money

Short Sale Acquisition Hard Money Financing

Short sales — where a lender agrees to accept less than the mortgage balance owed to let a distressed homeowner sell before foreclosure — can produce real below-market deals, but the seller's lender usually wants proof of funds and a fast, certain close once approval finally comes through. Hard money delivers exactly that closing certainty.

65-70%

Typical LTV/ARV

7-14 Days

Typical Close

Proof of Funds

Ready to Provide Instantly

6-18 Mo

Typical Term

Short sales already involve a slow negotiation process — the seller's lender has to approve accepting less than what's owed, which can take weeks or months. Once that approval finally comes through, the seller's lender typically wants the sale to close fast, and a buyer who shows up with a proof-of-funds letter and hard money already lined up has a real advantage over one still working through a 30-45 day conventional mortgage process that risks blowing the approval window.

Hard money is well suited to short sale acquisitions specifically because the underwriting is fast and the closing timeline is short — exactly what a short-sale-approving lender wants to see after already waiting through a long negotiation. Many short sale properties also need renovation work once acquired (deferred maintenance is common with distressed sellers), which hard money's draw-based construction funding handles in the same transaction.

Common Uses

Common Scenarios

Acquiring a short sale property once the seller's lender has issued final approval

Providing proof-of-funds documentation to strengthen a short sale offer against competing bids

Combining the acquisition with renovation financing for deferred-maintenance properties

Closing fast enough to meet a short sale lender's tight post-approval timeline

What Still Matters

Short sale approvals can still fall through even after months of negotiation — have a backup plan

Title can be complicated by junior liens the negotiation didn't fully clear — verify before closing

Realistic total-cost math including any renovation needed after a long-vacant or distressed sale

Patience for the pre-approval negotiation phase, even though the close itself moves fast

Winning the Deal When Speed Matters Most

After months of short sale negotiation, the deal can still be lost to a buyer who can't close fast enough once approval arrives. Hard money financing lined up in advance is what lets an investor actually capture the value in a short sale deal instead of losing it at the finish line.

Working a Short Sale Deal?

Send us the property and short sale status. We'll get you proof-of-funds and a real closing timeline fast.

Submit Your Loan Request →

Spec Home / Builder Inventory Financing

Spec Home & Builder Inventory Loans:
Financing Homes Built to Sell, Not to Order

Small and mid-size Texas builders who build speculatively — without a signed buyer — need financing structured around inventory turnover, not a single owner-occupant construction draw schedule. We fund the build and carry the completed spec home until it sells, on terms that fit a builder's actual pipeline instead of a one-off construction loan.

Up to 80%

LTC (Land + Build)

Quoted on your deal

Rate Range

12-18 mo

Term

7-10 days

Typical Close

Different from owner-builder financing. This is for builders constructing homes to sell to an unknown future buyer — production and semi-custom spec inventory — not an individual owner building their own home. See our owner-builder page if that's your scenario.

Spec building is a volume business — a builder with two, four, or six lots moving through design, permitting, framing, and finish-out simultaneously needs capital that scales with the pipeline, not a single construction loan reset for every new lot. Banks that do offer builder lines often cap the number of concurrent spec units, require substantial builder net worth and liquidity, and move slowly on each individual draw request. We underwrite the builder's track record and the individual lot economics, and move draws fast enough to keep multiple homes progressing at once.

What We Finance

Single Spec Home

Land acquisition and vertical construction for one speculative build

Multi-Lot Builder Line

Revolving or multi-draw facility across several concurrent spec builds

Completed-Spec Carry

Bridge financing to carry a finished, unsold spec home while it markets

Infill Lot Development

Acquiring and building on individual infill lots in established neighborhoods

Strong Underwriting Profile

Builder with a documented track record of completed and sold spec homes in the target market

Realistic comparable sales supporting the projected sale price for the finished product

Detailed construction budget and timeline by an experienced GC or the builder directly

Market with healthy absorption — homes at this price point actually selling within a reasonable window

Clean lot/land title with no zoning or platting issues outstanding

Harder to Finance

First-time spec builder with no completed sold project to underwrite against

Product priced well above what's actually selling in that specific micro-market

Multiple concurrent unsold spec homes already sitting on the builder's books

Unpermitted or unplatted land requiring significant entitlement work before building can start

Structured Around Your Building Pace, Not a Single Draw Schedule

Builders moving multiple spec homes at once need a lender who can process draw requests on separate lots in parallel without treating each one as a brand-new underwriting exercise. Once you're established with us, subsequent spec loans on new lots typically move faster than the first — we already know your build quality, your timeline discipline, and how your homes actually sell.

Building Spec Homes in Texas Right Now?

Send us your current pipeline, target lots, and build history. We'll tell you what it qualifies for — usually same day.

Get Your Builder Financing Quote →

Storm Resiliency Retrofit Financing

Storm Resiliency Retrofit Hard Money Financing

Adding a storm shelter, impact windows, a reinforced roof, or wind mitigation upgrades to a Texas rental property can lower insurance costs, protect the asset, and increase marketability to tenants — but it's construction capital most conventional lenders won't fund on an already-mortgaged property. Hard money fills that gap.

70-75%

Typical LTC/ARV

Draw-Based

Retrofit Funding

7-14 Days

Typical Close

6-12 Mo

Typical Term

Texas's exposure to tornadoes, hail, and Gulf Coast hurricanes has made wind mitigation and storm resiliency a genuine value-add for rental property — many insurers offer meaningful premium discounts for impact-rated windows, reinforced roof-to-wall connections, and storm shelters, and tenants increasingly factor storm safety into rental decisions in higher-risk areas. Financing these retrofits alongside other renovation work, rather than treating them as an afterthought, is often the most efficient way to fund them.

Hard money funds storm resiliency retrofits either as a standalone project on a property investors already own, or bundled into a broader renovation scope on an acquisition — impact windows, roof reinforcement, storm shelter installation, and similar hardening measures — with draws releasing as work completes and passes inspection.

Common Uses

Common Scenarios

Adding impact-rated windows and doors to reduce storm damage risk and insurance premiums

Reinforcing roof-to-wall connections to meet wind mitigation standards

Installing a storm shelter or safe room, particularly in tornado-prone areas

Bundling resiliency upgrades into a broader acquisition/renovation project

What Still Matters

Get an actual insurance premium quote before and after the retrofit to confirm the real savings

Confirm which specific upgrades qualify for wind mitigation credits with your insurer — requirements vary

A licensed contractor experienced in wind mitigation work, not just general renovation

Permitting requirements for structural reinforcement work, which vary by jurisdiction

Protecting the Asset and the Bottom Line

Storm resiliency upgrades are one of the few renovation categories that pay back through both reduced insurance costs and reduced disaster-damage risk — a genuine two-sided return that makes the retrofit capital worth funding properly rather than deferring it until after storm damage forces the issue.

Planning a Storm Resiliency Retrofit?

Send us the property and the retrofit scope. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Loan Request →

Short-Term Rental Acquisition Hard Money

Short-Term Rental (Airbnb) Acquisition Hard Money

Finding a strong short-term rental in a hot Texas market means moving fast — often against cash buyers and conventional financing timelines that take 30-45 days. Hard money lets STR investors close on the acquisition in days, secure the property, then refinance into a long-term DSCR loan once it's furnished and generating bookings.

70-75%

Typical LTV/ARV

7-10 Days

Typical Close

No STR History

Required to Qualify

6-18 Mo

Typical Term

Competitive short-term rental markets — Hill Country, the Gulf Coast, and mountain/lake towns statewide — move fast, and a conventional mortgage's 30-45 day close is often too slow to beat a cash offer. Hard money financing closes on the acquisition timeline, not the appraisal-and-underwriting timeline, which is what lets STR investors actually win competitive bids in these markets.

Because hard money underwrites the deal and the exit, not two years of projected short-term rental income, first-time STR buyers don't need an existing Airbnb track record to qualify. The plan is straightforward: close fast, furnish and list the property, build 3-6 months of booking history, then refinance into a long-term DSCR loan that qualifies on the property's actual short-term rental income.

Why Investors Use This Path

Common Scenarios

Competing against cash buyers in a fast-moving vacation rental market

Buying a fixer that needs renovation before it can be listed as an STR

First-time short-term rental investors without existing booking history

Converting a long-term rental or distressed property into an STR

Building a portfolio of STR units across multiple Texas markets

What Still Matters

Check local STR ordinances and HOA rules before closing — some Texas cities restrict or permit-cap short-term rentals

A realistic exit plan into DSCR refinance, since DSCR lenders typically want some booking history first

Furnishing and setup budget planned into the total project cost, not left as an afterthought

Insurance coverage appropriate for short-term rental use, not a standard landlord policy

From Fast Close to Long-Term DSCR Refinance

The typical path: hard money closes the purchase (and renovation, if needed) in days, the property gets furnished and listed, and once it has a few months of real booking data, it refinances into a DSCR loan sized off actual short-term rental revenue rather than long-term market rent — often unlocking a meaningfully larger loan amount than a standard rental refinance would.

Racing to Close on a Texas Short-Term Rental?

Send us the purchase price, market, and timeline. We'll tell you what you qualify for — often within 24 hours.

Submit Your STR Loan Request →

Subdivision & Partial Release

Financing a Multi-Lot Subdivision — and Getting Lots Released as You Sell

Buying a tract to subdivide and sell off individually is a different animal than a single fix-and-flip — the loan has to be structured from day one around how and when individual lots get released as they sell, not just how the whole tract gets repaid at the end.

A subdivision loan secures the entire tract at closing, but almost no subdivision deal makes sense if every lot has to stay locked to the loan until the very last one sells. A partial release clause — negotiated into the loan documents up front, not requested after the fact — sets a per-lot release price that lets you pay down a proportional (or front-loaded) chunk of the loan and get that lot's lien released free and clear, so it can close to its buyer without dragging the rest of the tract's financing into the transaction.

How Release Pricing Actually Gets Set

Release prices are rarely a flat even split of the total loan across all lots. Lenders typically front-load the release price on the first lots sold — above their pure pro-rata share — specifically so the loan balance de-risks faster than inventory depletes. That protects against a slow sell-through on the back half of the development leaving the lender under-secured. Getting this schedule negotiated correctly before you close, with real numbers instead of a vague formula, is the single most important part of structuring a subdivision loan.

What We Look At

Beyond the release schedule itself, we underwrite the plat and any remaining entitlement or infrastructure work (roads, utilities, drainage) needed before individual lots are sellable, your absorption assumptions for how fast lots will actually move in that submarket, and whether the release pricing still leaves the lender reasonably secured on the slowest-selling lots. A subdivision loan that's underpriced on release terms is a common reason these deals stall mid-project.

Can I get a partial release added to my loan after closing if it wasn't in the original terms?

Sometimes, but it's a renegotiation, not a formality — get the release schedule locked in before you close whenever possible.

Does horizontal development work (roads, utilities) get financed separately from the land acquisition?

It can be rolled into the same facility or financed as a separate draw-based line depending on scope — we structure it based on your actual development budget and timeline.

What happens if a lot sells for less than its assigned release price?

You'd need to cover the shortfall from proceeds or negotiate an adjustment — this is exactly why realistic absorption and pricing assumptions matter before you close, not after a lot is under contract.

Have a Subdivision or Multi-Lot Deal to Finance?

Tell us the tract, the lot count, and your sell-through plan — we'll structure the release schedule around it.

Get Your Subdivision Financing Terms →

Creative Deal Structures

Subject-To & Creative Financing in Texas:
The Strategies Top Investors Use When Banks Say No

Subject-to, seller financing, wrap mortgages, and lease-options give Texas investors access to deals that conventional or hard money lending can't touch. These structures aren't loopholes — they're legitimate acquisition strategies used by sophisticated investors to control properties with less capital, move faster than the market, and create win-win exits for motivated sellers. Here's how each works, when to use them, and where hard money fits in.

Subject-To Existing Financing

Buy the property while the seller's mortgage stays in place. The deed transfers to you but the loan stays in the seller's name. You make the payments, build equity, control the asset — without qualifying for a new loan.

Best when: Seller has 3–4% rate, motivated to exit fast
Risk: Due-on-sale clause (rarely enforced in TX)
Hard $ role: Rehab funds after acquiring sub-to

Seller-Controlled

Owner / Seller Financing

Seller acts as the bank — you make monthly payments directly to them, often with a 5–10 year balloon. No bank qualifying. Common on free-and-clear properties and commercial deals where the seller wants income stream vs lump sum.

Terms: 6–10% note rate, 20–30yr amort, 5–10yr balloon
Best when: Seller owns free and clear, wants passive income
Hard $ role: Can fund down payment or buyout

Layered Structure

Wrap Mortgage (All-Inclusive TD)

A second mortgage that "wraps around" the existing first. You pay the seller one payment; they pay the underlying lender. Spread between your rate and their rate is seller profit. Common in Texas on residential investment deals.

Example: Seller has 3.5% loan; you pay 7% — seller earns spread
Risk: Need seller to remain current on underlying
TX-specific: Texas is a deed-of-trust state — wraps are legal

Control Without Ownership

Lease-Option (Lease-Purchase)

Lease the property with an option to buy at a set price during the option period (typically 1–3 years). Option fee is non-refundable but often credited toward purchase price. Control the asset, generate rental income, buy when ready.

Option fee: 1–5% of purchase price
Option period: 12–36 months typical
Hard $ role: Exercise option + fund rehab at close

Speed & Flexibility

Hard Money + Creative Hybrid

Use creative financing to acquire, hard money to rehab or bridge to conventional. A subject-to acquisition with a hard money second for renovation costs is a powerful structure that minimizes upfront capital while preserving optionality.

Example: Sub-to at 3.5% + HML second at 11% for rehab
Exit: Refinance into DSCR or sell at full ARV
Capital in: Option fee + closing costs only

Commercial

Master Lease with Option

Lease an entire building from the owner, sublease units to tenants, pocket the spread. Ideal for apartment buildings and small commercial with a motivated owner who doesn't want to sell but needs relief. Option to buy locks in your exit.

Best for: Distressed multifamily, small commercial
Cash flow: Day 1 without buying
Conversion: Option exercise after stabilization

Real Deal: Dallas Subject-To + Hard Money Rehab

How an investor acquired and rehabbed a Dallas SFR using zero bank financing

The Acquisition

Seller situation Divorce, behind 2 payments

Existing loan balance $178,000 @ 3.25%

Payment $875/mo PITI

Purchase price $195,000

Down to seller $17,000 (cash to close)

Investor cash in $17,000 + 2 back pmts = $19,750

The Rehab

ARV (after repair) $285,000

Rehab budget $38,000

Hard money 2nd $38,000 @ 11%, 6 mo

Hard money cost ~$2,090 interest

Total invested ~$59,840

Timeline 5-month rehab + list

The Exit

Sale price $279,000

Agent commission -$16,740

Closing costs -$3,200

Loan payoffs -$216,000

Net proceeds $43,060

ROI on $19,750 in +218%

Creative Financing Strategies: Risk & Reward Comparison

Strategy	Capital Required	Speed	Lender Risk	Legal Complexity	Best Exit
Subject-To	Very Low ($5–20K)	Fast (2–3 wks)	Due-on-sale (low risk)	Moderate — need attorney	Wholesale, flip, or hold
Seller Finance	Low–Moderate (10–20%)	Fast (2–3 wks)	None	Simple — promissory note	Refinance at 12–24 mo
Wrap Mortgage	Moderate	Moderate	Seller default risk	Complex — TX attorney required	Refi or sell subject-to
Lease-Option	Very Low (option fee)	Fast	None	Simple agreement	Exercise option + flip
Master Lease	Low (deposits)	Moderate	None	Moderate	Exercise option

Where Hard Money Fits in Creative Deal Structures

Rehab Capital on Sub-To Deals

You acquire with subject-to (no bank qualifying), then use hard money as a second lien to fund the renovation. Two-lender structure with minimal equity tied up. Works when combined LTV stays under 75% of ARV.

Down Payment Bridge

Seller requires 15–20% down but your capital is tied up. A hard money short-term bridge loan (secured by another asset) funds the down payment, then conventional financing replaces it at close or shortly after.

Lease-Option Exercise

You've controlled the property for 18 months via lease-option, forced appreciation through management improvements. Now exercise at the locked-in price using hard money, close fast, then sell or refinance.

Master Lease Conversion

You've stabilized a 12-unit building via master lease from 60% to 95% occupancy. Now the numbers support a purchase. Hard money funds the acquisition at the option price while you season for DSCR refinance at 6 months.

Creative Deal in Texas? We Understand the Structure.

Most lenders don't understand subject-to, wraps, or master leases. We do — and we've funded the hard money component on hundreds of creative acquisitions across Texas. If you have a deal structure in mind, walk us through it and we'll tell you exactly where and how we can help.

Discuss Your Creative Deal →

Table-Funded Loan Explainer

What Is a Table-Funded Hard Money Loan?
How Your Closing Actually Gets Paid

Borrowers occasionally ask why their hard money loan shows a different name on the note than the company they spoke with, or why funding sometimes routes through a title company account rather than a direct wire the day before closing. That's table funding — a completely normal, common structure in private lending, not a red flag.

Same Day

Funds at Closing Table

Title Co.

Holds & Disburses Funds

Standard

Structure in Private Lending

No Cost

Difference to Borrower

"Table funding" simply means the lender wires loan proceeds directly to the title or escrow company at the closing table, rather than funding the loan days in advance and holding the note themselves indefinitely. The title company disburses funds to the seller and pays off any existing liens as part of the same closing — the borrower experiences no difference in timeline, cost, or terms. It's a funding mechanism, not a different type of loan.

The reason it matters at all is that many hard money and private lenders work with capital partners, warehouse lines, or a network of private investors rather than funding every loan from a single balance sheet. Table funding lets a lender originate and close a loan using a capital source that isn't finalized as the permanent holder of the note until closing itself — which is exactly why the entity named on your note may differ slightly from the company you applied through. Both are legitimate, licensed parts of the same transaction.

What This Means for You as a Borrower

What Doesn't Change

Your approved rate, term, and loan amount — locked before closing, unaffected by funding structure

Your closing date and timeline — table funding happens the same day, not later

Your point of contact — you still work with the same loan officer throughout

Your obligations — payments, servicing, and terms follow the note as agreed

What You Might Notice

The entity name on your promissory note may differ from the originating company's name

Funds may show as wired from a title company or capital partner account, not the lender directly

Loan servicing may transfer to a servicer shortly after closing — standard and disclosed in advance

Why We're Upfront About It

Some borrowers researching hard money lenders come across the term "table funding" in a negative context — usually tied to unrelated concerns about loan servicing transfers or capital markets generally, not to any actual borrower harm. We explain the mechanism plainly because an informed borrower is a comfortable borrower: table funding is how a large share of private and hard money capital moves in Texas, it's fully disclosed on your closing documents, and it costs you nothing extra.

Questions About How Your Loan Gets Funded?

Ask us directly before you commit to anything. We'll walk through exactly how your specific deal closes and funds.

Talk to a Loan Officer →

Tax-Delinquent & Tax Deed Property Financing

Buying at a Texas Tax Sale? Hard Money Closes
Fast Enough to Actually Win the Bid

Tax-delinquent and tax deed properties move on a completely different clock than the MLS — county tax sales require cash or certified funds at the courthouse steps the same day you win, and post-sale redemption periods add a layer most conventional lenders won't touch at all. Hard money is built for exactly this timeline.

1st Tuesday

Monthly Tax Sale Date

180 Days

Typical Redemption Period

Cash/Cashier's Check

Required at Auction

7–10 Days

Post-Win Cash-Out Bridge

Not legal or tax advice. Redemption periods, notice requirements, and title curative timelines vary by county and property type — confirm specifics with a title company or real estate attorney before bidding. This is educational context, not a substitute for professional review.

Texas counties sell tax-delinquent properties at public auction to recover unpaid property taxes, penalties, and interest. Unlike a mortgage foreclosure sale, a tax sale deed comes with a statutory redemption period during which the former owner (or certain lienholders) can reclaim the property by paying you back the purchase price plus a state-mandated redemption premium — typically 25% in year one, 50% in year two, longer for homestead or agricultural-use property. That structure is exactly why tax deed investing is attractive: you either keep the property at a steep discount, or you get repaid at a return most conventional lending would never produce.

Where Hard Money Fits the Tax Sale Timeline

Pre-Auction Proof of Funds

Most Texas counties require registered bidders to show proof of funds or a certified cashier's check before you're allowed to bid. We issue a pre-approval letter sized to your target properties so you can register and bid with confidence.

Win the Bid, Pay the County

Payment is due in full, same day, in cash or certified funds — there's no financing contingency at a tax sale. Many investors win with their own capital, then immediately turn to hard money to recapitalize.

Cash-Out Bridge Loan Post-Auction

Once you hold the tax deed, we can fund a cash-out bridge loan against the property to return your auction capital — typically closing in 7–10 business days once title work confirms the deed and redemption status.

Title Curative & Redemption Period

A tax deed is not the same as clear, insurable title until the redemption period expires and any required quiet title action is complete. We underwrite around this timeline rather than pretending it doesn't exist — see our Title Curative guide for the deeper mechanics.

Rehab & Exit

Once title is clear (or insurable with a curative plan in place), the loan converts to a standard rehab draw structure — renovate, then sell or refinance into a long-term rental loan.

Good Fit for Tax-Sale Financing

You've researched the property's redemption status and it's expired or waivable

You need to recapitalize auction cash quickly to bid on the next property

You're comfortable holding through a redemption window on a discounted-basis property

Title company has a curative path (quiet title or title insurance with exceptions) already identified

Know Before You Bid

Federal IRS tax liens can survive a tax sale with a 120-day federal redemption right — always check first

Homestead and ag-use properties carry a longer, 2-year redemption period in Texas

You generally cannot get standard title insurance until redemption expires or a quiet title action clears the deed

Some counties' online auction lists lag — confirm delinquent tax and lien status directly with the county before bidding

Why Most Lenders Won't Touch These Deals

Banks and conventional lenders almost universally decline to finance tax deed purchases — the redemption period and title uncertainty don't fit standard underwriting, and same-day cash requirements rule out any loan with a normal closing timeline. That gap is exactly where hard money earns its premium: we underwrite the deal, the exit plan, and the redemption timeline directly, rather than declining on the mismatch alone.

Bidding at a Texas Tax Sale?

Get a pre-approval letter sized to your target properties, or a cash-out bridge quote once you've already won. Same-week term sheets.

Get Your Tax Sale Financing Quote →

Tenant Improvement & Build-Out Financing

Commercial Tenant Improvement & Build-Out Hard Money

Buying a vacant or underperforming commercial building that needs a real build-out before it can lease or sell? Hard money funds the purchase and the improvement work together, so you're not stuck financing construction with cash while a conventional lender waits for the building to be "done" before they'll touch it.

70-75%

Typical LTC

Draw-Based

Construction Funding

7-14 Days

Typical Close

6-18 Mo

Typical Term

Commercial tenant improvement work — reconfiguring interior space, upgrading electrical/HVAC for a new use, converting a shell space to suit a specific tenant — sits in an awkward financing gap. Conventional commercial lenders often want a signed lease and a stabilized property before they'll fund, but you frequently can't land that lease until the space is actually built out. Hard money bridges that gap by funding the purchase and the construction together, against the project's completed value rather than its current as-is condition.

Draws release as work completes, similar to residential fix-and-flip construction draws, so you're not carrying the full build-out cost out of pocket before the lender releases funds. Once the space is leased or the improvement is complete and stabilized, the loan typically refinances into permanent commercial financing at conventional rates.

Common Uses

Common Scenarios

Converting a vacant retail or office shell into a build-to-suit space for a specific tenant

Reconfiguring an outdated commercial interior to attract new leasing prospects

Splitting a large single-tenant space into multiple smaller leasable units

Upgrading electrical, HVAC, or ADA compliance to meet a new use's requirements

Repositioning a distressed or foreclosed commercial property before resale

What Still Matters

Detailed scope of work and contractor bids submitted before draws are approved

Realistic completed value supported by comparable leased/sold commercial space

A clear exit — lease-up and permanent refinance, or sale at completion

General contractor with commercial build-out experience, not a residential-only crew

From Purchase Through Stabilization

The typical structure funds the acquisition and the build-out budget together in one loan, releases construction draws as milestones complete, and carries the property through lease-up. Once the space is tenanted and generating income, it refinances into a conventional commercial mortgage sized off the stabilized rent roll — the same purchase-to-permanent path residential investors use, applied to commercial space.

Buying a Commercial Property That Needs a Build-Out?

Send us the property, scope of work, and budget. We'll tell you what it qualifies for — usually within 48 hours.

Submit Your Tenant Improvement Loan Request →

Texas Market Intelligence

Why Texas Hard Money Is
Unlike Any Other Market

Texas real estate operates by different rules than the rest of the country — no state income tax, no deed tax, non-judicial foreclosure, and explosive population growth. Here's what that means for your deals.

⚡

Non-Judicial Foreclosure = Lenders Lend More

Texas allows non-judicial foreclosure — if a borrower defaults, lenders can foreclose without a court proceeding. This dramatically reduces lender risk, which means lenders can offer higher LTVs and move faster. In judicial states (like Florida), lenders are more conservative because foreclosures take 12–18 months in court.

TX foreclosure: 60 days | CA: 12–18 months

🏙️

Population Growth Backstops Values

Texas added 1,000+ residents per day in 2023. Dallas, Austin, Houston, and San Antonio are among the fastest-growing metros in the US. This creates a structural floor under real estate prices — more demand means fewer distressed sales and faster absorption. Hard money lenders in Texas feel more comfortable lending on ARV because the market is liquid.

+470,000 new TX residents (2023)

💰

No State Income Tax = More Investors

Texas has zero state income tax, which attracts out-of-state investors who can keep more of their flip profits and rental cash flow. The result: more buyer competition, higher ARVs, and a deeper pool of buyers when you go to sell your renovated property. Your exit is easier in Texas than most states.

0% state income tax — keeps more profit

🔧

Contractor Availability Is Improving

Texas waived licensing requirements for many trades during COVID housing boom, and the workforce expanded significantly. DFW now has the largest construction labor pool in the Southwest. This means shorter contractor wait times and better bid competition vs. 2021–2022 when labor was nearly impossible to find.

DFW: #1 construction job market in SW US

Texas Markets: Where Hard Money Makes Sense Right Now

DFW Metroplex

Highest volume. Entry-level ($150–250K ARV) moves fast. Corporate relocations keep demand steady.

🔥 Hot

Houston Metro

Diverse economy, port activity, energy sector. Inner-loop neighborhoods best for flips.

🔥 Hot

San Antonio

Military-driven stability. Median prices rising steadily. Less volatile than Austin.

📈 Strong

Austin Metro

Still correcting after 2021–2022 spike. Better for BRRRR/rental than quick flips right now.

📊 Selective

Emerging: Georgetown, Kyle, Buda

Austin suburbs drawing overflow. Lower entry, strong rental demand from tech workers.

📈 Strong

Lubbock / Midland / Odessa

Energy economy, affordable entry. Best for rental holds — flip market thinner.

📊 Selective

Texas Laws That Protect Hard Money Investors

These are the Texas-specific legal facts that make the state unusually favorable for real estate investors:

✓

Statute of Limitations on DeficiencyTexas limits lenders' ability to pursue borrowers for deficiency judgments after foreclosure — reduces personal risk on investment properties in cases of default.

✓

No Transfer Tax / Deed TaxTexas has no deed transfer tax (unlike most states). Closing costs are lower, which improves your net margin on every deal — buy side AND sell side.

✓

Trustee Sale ProcessForeclosures go through a trustee, not a court. 21-day notice, first Tuesday auction. This predictability lets lenders and borrowers know exactly what happens in a worst case.

✓

No Usury on Business LoansHard money lenders in Texas can charge market-rate interest on commercial/investor loans without usury restrictions that apply in other states. This is why TX has more hard money lenders than most states.

Ready to Use Texas to Your Advantage?

Get a hard money term sheet in 24 hours. No income docs, no W-2s, no long waits.

Get My Term Sheet →

2026 Market Data

Texas Fix & Flip Markets in 2026:
Where the Deals Are (and Aren't)

Texas has 254 counties and five major metros — each with different inventory levels, price appreciation, ARV support, and days-on-market dynamics. Here's where experienced investors are finding deals right now, and what to watch out for in each market.

Texas Statewide Fix & Flip Indicators — Q3 2026

Texas continues to outperform national averages on most metrics that matter for residential investors:

3.4M

Pop. Growth (10yr)

Largest absolute gain of any US state — sustains housing demand

State Income Tax

Investor profit stays in your pocket — a major reason capital keeps flowing in

2.1 mo

Avg Inventory TX

Below 3 months = sellers market in most submarkets; fast absorbs renovated product

38 days

Avg DOM (renovated)

Fully renovated homes in strong neighborhoods continue to move fast

+4.2%

YOY Median Price

Statewide median appreciation supports ARV assumptions — not declining

DFW

Houston

Austin

San Antonio

Secondary

Dallas Core

Warm

Median SFR Price$385K

Avg DOM34 days

Investor ActivityHigh competition

Best StrategyCosmetic flip, 90-day exit

Strong ARV support in Oak Cliff, East Dallas, Lakewood adjacent. Competition has compressed margins — need sub-$200K acquisitions for 15%+ ROI. Off-market is essential here.

Fort Worth / TCU

Hot

Median SFR Price$310K

Avg DOM28 days

Investor ActivityModerate — growing

Best StrategyMedium rehab, BRRRR rental exit

Lower price points than Dallas, faster absorption. Near TCU and downtown FW, renovated homes are selling at $275-350/SF. Ryan Place and Fairmount neighborhoods producing consistent 18-22% gross flipping margins.

Suburbs (McKinney, Frisco, Allen)

Warm

Median SFR Price$445K

Avg DOM41 days

Investor ActivityLower than core

Best StrategyLarge square footage, full rehab

Higher price points require larger capital commitment but retail buyers are move-up buyers who pay for quality. Expect 4-5% down on ARV to hit your number in these markets.

Inside Loop (610)

Hot

Median SFR Price$420K

Avg DOM29 days

Price per SF (renovated)$280–$380/SF

Best StrategyFull gut, modern finishes

Montrose, Midtown, Heights, East End — inside-loop Houston is consistently the strongest flip market in Texas. Buyers are dual-income professionals who will pay full ARV for turnkey condition. Flood zone status is critical — always check FEMA map and flood history before acquiring.

Clear Lake / Pearland

Warm

Median SFR Price$295K

Avg DOM38 days

Investor ActivityModerate

Best StrategyMedium rehab, good school districts

NASA corridor drives steady employment. Lower price point, moderate competition, and strong school districts make this a reliable if unexciting flip market. 90-day exits are realistic.

Katy / Sugar Land

Watch

Median SFR Price$340K

Avg DOM52 days

Investor ActivityModerate — slowing

RiskNew construction competition

Heavy new construction from Lennar/DR Horton is competing directly with renovated resale. Retail buyers sometimes choose new over renovated at similar price points. Budget conservatively — use 90-day DOM in your underwrite, not 45.

East Austin / Mueller

Hot

Median SFR Price$590K

Avg DOM25 days

Price per SF (renovated)$380–$480/SF

Best StrategyFull gut, modern design, ADU

Highest price per SF in Texas flip market. Demand from tech-sector buyers sustains premium pricing. ADUs (Accessory Dwelling Units) are now easier to permit in Austin and can add $80-120K to ARV. Worth budgeting for in any lot that can accommodate it.

Round Rock / Cedar Park

Warm

Median SFR Price$425K

Avg DOM37 days

Investor ActivityModerate

Best StrategyFamily-friendly, 4BR preferred

Bedroom communities for Austin tech workers. Family buyers drive demand — 4/2 configuration outperforms 3/2. Strong school districts (Round Rock ISD) add to ARV support.

San Antonio Core (78201–78210)

Hot

Median SFR Price$238K

Avg DOM31 days

Entry price (distressed)$95–$155K

Best StrategyCosmetic to medium rehab

Best price-to-ARV ratio in any major Texas city. SA core neighborhoods — Beacon Hill, Tobin Hill, Lavaca, King William — are gentrifying with strong absorption. Military buyers (JBSA and Lackland) provide a steady demand base. Lowest cost-of-entry of any Texas major metro = lower capital requirement, higher return on smaller deals.

Stone Oak / NW SA

Warm

Median SFR Price$365K

Avg DOM44 days

Investor ActivityLow — opportunity

Best StrategyFull renovation, top-end finish

Less investor competition, longer DOM requires conservative underwriting. North Star Mall corridor driving sustained demand. Good opportunity for first-time investors with higher equity positions and longer hold tolerance.

Waco

Emerging

Median SFR Price$198K

Avg DOM35 days

Notable driverBaylor, tourism (HGTV effect)

Best StrategyFull renovation, STR potential

Magnolia / Chip and Joanna Gaines brand has permanently elevated buyer expectations and short-term rental demand in Waco. Properties near the Silos command 15-20% premium. One of the better secondary markets for STR-positioned renovations.

Killeen / Temple

Steady

Median SFR Price$225K

Avg DOM42 days

Notable driverFort Cavazos (formerly Hood)

Best StrategyVA-eligible, 3/2 format

Military buyer base means consistent VA loan demand — renovate to VA standards (no deferred maintenance, working systems, no safety hazards) and your buyer pool expands significantly. Lower price points = accessible entry for investors with $30-50K equity.

Lubbock / Amarillo

Caution

Median SFR Price$178K

Avg DOM55 days

Investor ActivityLow

RiskThin buyer pool, slow absorption

Viable markets for local investors with deal flow and local buyer relationships — challenging for out-of-market investors. Conservative underwriting required: budget 90-day DOM, 8% vacancy, and expect longer carry periods. Hard money terms may be tighter in these markets.

Found Your Market. Now Get the Funding.

Submit your deal — property address, purchase price, rehab estimate, and your ARV comp support. We fund fix-and-flip deals across all major Texas markets. Term sheet in 24 hours.

Get a Term Sheet →

Tired Landlord Portfolio Buyout

Tired Landlord Bulk Portfolio Buyout Financing

A landlord ready to exit — retiring, burned out on tenant management, or just done with the business — often wants to sell an entire portfolio at once, at a discount, to whoever can close fast and take the whole package off their hands. Hard money is built for exactly this kind of bulk acquisition, funding multiple properties in a single closing against the portfolio's combined value.

65-70%

Typical LTV/ARV

7-14 Days

Typical Close

Single Closing

Multiple Properties

6-18 Mo

Typical Term

"Tired landlord" deals — a landlord selling an entire rental portfolio at once, often below aggregate market value in exchange for speed and simplicity — are one of the best sources of bulk acquisition opportunity for active investors. But conventional financing isn't built for a multi-property transaction closing on one timeline, especially when the properties are in varying condition or a few need renovation before they're rent-ready again.

Hard money funds the entire portfolio purchase in a single closing, against the properties' combined as-is or after-repair value, so the deal doesn't get held up waiting on separate underwriting for each individual property. Once acquired, properties needing work get renovated with draw-based funding, and the strongest, most stabilized units in the portfolio can often refinance into long-term financing first while others are still being repositioned.

Common Uses

Common Scenarios

Acquiring a retiring landlord's entire rental portfolio in one transaction

Buying a mix of stabilized and deferred-maintenance properties from a single seller

Bulk acquisitions where speed and closing certainty matter more to the seller than top dollar

Consolidating a portfolio across multiple Texas markets into a single financing structure

What Still Matters

Individual property-level due diligence still matters even in a bulk purchase — inspect each unit

Existing tenants and leases transfer with the properties — review lease terms before closing

A realistic renovation and stabilization plan for any properties needing work

Title review across every property in the portfolio, not just the strongest ones

Speed Is the Whole Point

Tired landlord sellers are almost always prioritizing a fast, certain close over maximizing price — which means the buyer who can actually close quickly with financing already lined up wins these deals, not the one offering the highest number with a slow conventional-financing contingency attached.

Found a Landlord Ready to Sell an Entire Portfolio?

Send us the properties, condition, and asking terms. We'll tell you what the deal qualifies for — usually within 48 hours.

Submit Your Portfolio Loan Request →

Title-Curative Hard Money

Clouded Title? Hard Money Can Bridge
While Curative Work Gets Done

Missing heirs, an unreleased old lien, a defective prior deed, or a boundary discrepancy can all cloud a title beyond what a formal quiet title suit alone covers. Banks generally won't touch a property until every curative issue is fully resolved — hard money can bridge the gap while that work is in progress.

Case-by-Case

Curative Issue Review

Attorney-Led

Curative Work Required

Lower LTV

Until Title Clears

Refinance

Typical Exit Once Clear

Quiet title litigation is one specific tool for one specific kind of title defect. Plenty of other issues cloud a title without ever going to court — an heir who never signed off on a prior transfer, a lien that was paid off but never formally released, a defective legal description in an old deed, or a fence line that doesn't match the recorded boundary. Each needs its own curative path, usually led by a title or real estate attorney, and a conventional lender typically won't fund until it's fully resolved.

Common Curative Situations

Unreleased Old Liens

A paid-off mortgage or judgment lien that was never formally released from record

Missing Heir Signatures

An inherited property where not every heir signed off on a prior conveyance

Defective Prior Deeds

Legal description errors or improperly executed deeds earlier in the chain of title

Boundary & Survey Discrepancies

Fence lines, easements, or improvements that don't match the recorded survey

Financeable While Curing

A title attorney has identified the specific defect and a clear path to cure it

Curative work is already underway, not just theoretically possible

Loan sized conservatively enough to account for the title risk during the cure period

Borrower has a realistic refinance or sale exit once title clears

Needs Resolution First

Defect is severe enough that no title company will issue any insurance, even with exceptions

No attorney engaged yet and no defined curative plan or timeline

Ownership dispute is actively contested rather than a clerical or procedural defect

No credible exit plan once (or if) the title issue is resolved

Why This Requires Case-by-Case Underwriting

Title defects range from a quick administrative fix to a genuinely contested ownership dispute, and the right loan structure depends entirely on which one you're dealing with. We work directly with the borrower's title attorney to understand exactly what's clouding the title and what curing it actually requires before sizing a loan around it.

Have a Title Issue Holding Up Your Deal?

Tell us what the title company or attorney has flagged. We'll tell you quickly what's financeable.

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Title & Survey Requirements

Title Insurance & Survey Requirements:
What a Hard Money Closing Actually Needs

Hard money moves fast, but the title and survey work behind the closing still has to be real — a lender's title policy protects our lien position, and depending on the property, a current survey can be the difference between an on-time close and a title company holding funds until an issue is cleared.

Lender's Policy

Required Every Closing

Owner's Policy

Optional, Borrower's Choice

Case-by-Case

Survey Requirement

Title Co.

Handles Search & Closing

Every loan closes through a title company that runs a title search, clears any liens or judgments that need to be paid off or released, and issues a lender's title insurance policy protecting our position against anything the search missed. A borrower can also buy an owner's policy at the same closing to protect their own equity, though it isn't required for the loan itself.

When a Survey Is Actually Required

Recent Survey On File

An existing survey under a few years old with no changes to the property is often acceptable as-is

New Construction / Additions

A current survey is typically required when structures have been added or altered since the last one

Boundary or Easement Questions

Unclear lot lines, shared driveways, or easement disputes usually require a fresh survey to close clean

Rural / Unplatted Land

Acreage and rural parcels without a recorded plat almost always need a current survey

What Keeps Closing On Schedule

Title search ordered as soon as the deal is under contract, not after underwriting finishes

Any existing liens, judgments, or unpaid taxes identified and a payoff plan set before the closing date

Existing survey (if usable) provided to the title company early rather than at the last minute

Clear, single-owner title with no probate, divorce, or entity-authority complications

What Delays Closing

A title exception (unreleased old lien, unresolved judgment) surfacing for the first time at closing

A required new survey ordered late, adding days to an already tight timeline

Property held in an entity without clean, current authority documents for who can sign

Boundary or encroachment issue discovered that requires a title curative process before insuring

Why We Order Title Early

Because a hard money closing is often measured in days or weeks rather than a bank's typical 45-60 day window, we push title work to start the moment a deal is under contract instead of waiting for underwriting to fully clear — that way, if a lien needs to be released or a survey ordered, it's already moving in parallel and doesn't add time to your actual close date.

Have a Title or Survey Question on an Upcoming Deal?

Send us the property address and any title or survey documents you already have. We'll tell you what's needed to close on time.

Get Your Fast Hard Money Quote →

Unpermitted Work & Code Violation Financing

Financing Properties With Unpermitted Work
or Open Code Violations

A finished garage conversion with no permit on file. An addition built by the previous owner that never got a final inspection. An open city code case from a prior owner's neglected roof. Conventional lenders walk away from these deals the moment a permit search comes back incomplete — we look at the actual scope of the issue and structure around it.

65-70%

Max LTC

Quoted on your deal

Rate Range

6-18 mo

Term

7-12 days

Typical Close

Unpermitted work and open code violations are among the most common reasons a conventional purchase or refinance falls apart late in the process — a title search or appraisal flags something the bank's underwriting simply isn't built to evaluate, and the deal dies regardless of whether the actual issue is a cosmetic paperwork gap or a real structural concern. We start by separating the two: is this a permit that just needs to be pulled retroactively (common, usually straightforward), or is there an actual safety/structural question behind the missing paperwork (rarer, but changes the underwriting)?

Common Scenarios We Finance

Retroactive Permit Pull

Finished space (garage, addition, ADU) that needs permits closed out after the fact

Open City Code Case

Purchase or refinance of a property with an active code enforcement violation on file

Unpermitted Electrical/Plumbing

Work completed without inspection that needs correction or documentation

Prior-Owner Additions

Square footage added by a previous owner with no permit record at the county

Straightforward to Finance

Cosmetic or paperwork-only gap — work was done to code but never permitted or finaled

A clear, budgeted plan to pull retroactive permits or resolve the code case post-closing

Investor has experience navigating city permitting or a contractor who does

No life-safety issue identified in a walk-through inspection

City has a known retroactive-permit process (most Texas municipalities do)

Needs Closer Review

Structural concern behind the missing permit — load-bearing wall, foundation, or roof work

Violation carries an active fine accruing daily with no resolution timeline

City has flagged the property for potential demolition or condemnation order

No realistic plan or budget to resolve the underlying issue after closing

Why We Can Move When Banks Can't

Bank underwriting is built around a clean title and clear permit history — the moment either is in question, the loan goes to a manual review queue that can take weeks and often ends in a decline regardless of the actual severity. Hard money underwriting is built around the property's value and your exit plan, not a compliance checklist, which is why we can close on a deal with an open code case in days while a bank is still waiting on a committee meeting.

Found a Deal With a Permit or Code Issue Attached?

Send us the property, the specific violation or missing permit, and your plan to resolve it. We'll tell you what it qualifies for — usually same day.

Get Your Hard Money Quote →

Texas Usury Law & Rate Cap Guide

Texas Usury Law: How Points & Rates
Are Structured on Business-Purpose Hard Money

Borrowers new to hard money sometimes assume double-digit rates and points must run afoul of Texas usury law. In practice, business-purpose loans are treated very differently from consumer loans under the Texas Finance Code, and legitimate hard money lenders structure rates and fees specifically to stay inside those limits — here's how it actually works.

Ch. 302 & 306

Tex. Finance Code

Business Purpose

Key Legal Distinction

2-4 pts

Typical Origination

Written Agreement

Rate Ceiling Governs

Not legal advice. Usury law is fact-specific and rate ceilings vary by loan type and agreement structure. Borrowers and their own attorneys should confirm loan documents comply with the Texas Finance Code — this is educational context, not a substitute for legal review.

Texas law sets different maximum lawful rates depending on how a loan is classified and whether the agreement specifies its own contract rate. Business-purpose loans — financing a rental property, a fix-and-flip, or a commercial acquisition rather than a personal residence — fall under a different framework than consumer lending, with meaningfully higher permissible rate ceilings when the loan agreement properly specifies its rate in writing.

How This Actually Works in Practice

What "Business Purpose" Means

Loan proceeds fund an investment, rental, or business property — not a personal homestead

How Points Are Treated

Origination points are typically treated as prepaid interest and factored into the effective rate

Rate Ceiling Categories

Texas law sets several rate ceiling tiers; a properly written agreement can specify the applicable one

Why the Written Agreement Matters

A clear, properly drafted note is what lets a lender rely on the higher contract-rate ceiling at all

What a Compliant Loan Looks Like

Clearly documented business or investment purpose for the loan proceeds

Written loan agreement that specifies the contract rate and all fees up front

Points and fees disclosed and itemized, not buried inside an undisclosed effective rate

Loan made to a business entity or clearly for investment purposes, not a homestead refinance

Red Flags to Avoid With Any Lender

Verbal-only rate terms with nothing specified in a signed written agreement

Fees or points added after the fact that weren't disclosed at commitment

A lender unwilling to explain how their rate and points comply with the loan's classification

Loan structured to disguise a consumer/homestead purpose as a business purpose loan

Why This Protects Borrowers, Not Just Lenders

Understanding the usury framework isn't just academic — it's what lets a borrower evaluate whether a rate and fee structure is legitimate before signing. A lender who can clearly explain their rate classification, point structure, and written agreement is one operating inside the rules; vague or verbal-only terms are the actual warning sign, regardless of how the rate itself compares to bank pricing.

Want a Clear, Fully Disclosed Rate Quote?

Send us the deal. We'll give you a written term sheet with rate, points, and fees spelled out up front — no surprises.

Get Your Hard Money Quote →

Distressed Property Financing

Vacant & Abandoned "Zombie Property" Rehab Financing

Long-vacant homes come with problems conventional lenders won't touch: no utilities to inspect against, deferred maintenance stacked for years, sometimes a title still tangled in probate or a stalled foreclosure. That's exactly the kind of deal hard money was built for.

PROBLEM

No Utility History

Banks want a habitability inspection with power/water on — vacant properties rarely have either

PROBLEM

Deferred Maintenance

Roof, HVAC, plumbing, pest/mold damage stacked over months or years of neglect

PROBLEM

Title Complications

Stalled foreclosure, tax delinquency, or an estate/probate transfer still in progress

OUR ANSWER

Asset-Based Underwriting

We lend against as-is value and a real rehab budget, not a bank's move-in-ready checklist

Why Conventional Lenders Pass on Vacant Property

A vacant property sitting unoccupied for six months or longer trips several red flags for a conventional appraiser and underwriter: insurance carriers often won't issue a standard homeowner's policy on a vacant dwelling, utilities frequently need to be reactivated just to run a basic inspection, and prolonged vacancy itself tends to correlate with exactly the kind of deferred maintenance — water intrusion, pest damage, HVAC failure — that a conventional loan program isn't underwritten to absorb. The result is a property that can sit on the market for months, priced below comparable occupied homes, simply because so few buyers can actually finance it.

How We Underwrite These Deals Differently

We size the loan around as-is value plus a documented rehab scope, drawn against completed work rather than requiring the property to already meet a habitability standard on day one. Title complications — a stalled foreclosure, an unresolved estate transfer, delinquent taxes — get worked through with real documentation rather than treated as an automatic disqualifier, since these situations are common with genuinely vacant, long-neglected properties and don't by themselves reflect on the deal's underlying value.

This is the same buy-fix-resell or buy-fix-rent playbook we finance every day — vacant and abandoned property is simply the segment of the market where speed and asset-based underwriting matter most, because it's exactly the segment conventional financing can't reach.

Found a Vacant Property Worth Fixing?

Tell us the condition and the plan — we underwrite the deal in front of us, not a checklist built for move-in-ready homes.

Talk to a Loan Officer →

Wholesale Deal Analysis

Getting a Wholesale Deal Funded:
How to Run the Numbers Before You Buy the Contract

You found a deal. Now you need to know if it pencils as a flip — and whether a hard money lender will fund it. The math isn't complicated, but wholesalers often underestimate holding costs and overestimate ARV. Here's how to run it right.

Estimate ARV

Comp within 1 mile, 90 days, similar SF/bed/bath

Estimate Rehab

Scope every system: roof, HVAC, kitchen, baths, cosmetic

Apply 70% Rule

Max offer = (ARV × 70%) − rehab

Stack All Costs

HML points + interest + closing costs (buy + sell) + holding

Check Your Margin

Net profit ÷ ARV should be ≥ 15% for a real deal

Sample Deal Walk-Through: Fort Worth, TX

3/2, 1,450 SF, Eastside neighborhood. Wholesale contract price $195,000. Here's how a lender analyzes it.

Deal Inputs

After-Repair Value (ARV)$310,000

Contract / Purchase Price$195,000

Estimated Rehab$52,000

Total Project Cost$247,000

70% Rule Max Purchase(310K × 70%) − 52K = $165K

Deal vs. 70% Rule$30K over — tight deal

Full Cost Stack

HML Loan (75% of purchase)$146,250

Origination (2.5 pts)$3,656

Interest (12% × 5 mo)$7,313

Rehab Draw$52,000

Buy Closing Costs (2%)$3,900

Sell Closing Costs (6%)$18,600

Total All-In Cost$281,469

Gross Profit$28,531

Profit Margin (÷ ARV)9.2% — marginal

Three Scenarios: Go, Maybe, No

✓ Pull the Trigger

Strong Deal

Profit margin ≥ 20% of ARV ($62K+ on a $310K ARV)

All-in ≤ 75% of ARV with comfortable rehab cushion

Neighborhood comps tight — low variance in sale prices

Rehab scope clear with contractor bids in hand

ARV confirmed by 3 sales within 90 days, under 1 mile

? Negotiate or Walk

Marginal Deal

Margin 10–19% — any cost overrun kills your profit

Can you get the contract reduced $10–20K to fix margin?

Is rehab scope tight or are you estimating from the curb?

Any deferred maintenance you haven't priced yet?

Get contractor walk-through before assigning or buying

✗ Pass

Bad Deal

Margin under 10% after real cost stack — one surprise kills it

ARV based on wishful comps or active listings (not sold)

Rehab scope unknown, foundation issues, structural unknowns

Soft resale market — DOM over 45 days, price reductions in comps

Assignment fee eating profit that should go to the flipper

Red Flags We See on Wholesale Deals

ARV based on active listings, not closed sales. Active prices are asking prices — a house closes when a buyer agrees. Use sold comps only.

Rehab estimated as "light cosmetic" on a 1970s house. Foundation, plumbing, and electrical are never light in a 50-year-old Texas home.

No contractor bids — just a round number. $40K rehab on a 1,600 SF house with a dated kitchen needs line-item backup to be credible.

Forgetting the sell-side closing costs. 6% commissions + title + prorations add $15–25K to cost on a $300K flip. Most beginners miss this.

Underestimating hold time. Texas permit process adds 4–8 weeks; contractor overruns are routine. Budget 6 months minimum on anything significant.

Comp selection bias. Cherry-picking the two nicest comps and ignoring the five that sold $30K less. Lender takes the conservative view, not the best case.

Your Wholesale Deal Analyzer

Plug in your numbers to see if this deal works before you lock up the contract.

ARV (After-Repair Value $)

Contract / Purchase Price ($)

Estimated Rehab ($)

Hold Time (months)

HML Rate (%)

HML Points

—

70% Rule Max Offer

—

Total All-In Cost

—

Gross Profit

—

Margin % of ARV

Found a Wholesale Deal? Get Pre-Approved in 24 Hours.

Bring your ARV, rehab scope, and contract price. We'll tell you if we can fund it — and at what terms — before you're locked in. Most approvals same day. Assignment-friendly, no seasoning required.

Submit Your Deal →

Wire Fraud & Closing Scam Prevention

Real Estate Wire Fraud Is Real —
Here's How to Protect Your Closing Funds

Wire fraud targeting real estate closings has become one of the most common scams hitting investors, title companies, and lenders alike. It's also one of the most preventable — a couple of simple verification habits make you very hard to target.

Phone Verify

Every Wire, Every Time

Spoofed Email

Most Common Attack Vector

New Number

Never Call One From the Email

Rarely Reversible

Once a Wire Sends

The scam works because it targets trust, not technology. A criminal gains access to a real inbox somewhere in the transaction chain — an agent, a title company employee, or a lender — then silently monitors the thread for weeks, learning names, timelines, and terminology. Right before closing, they send a near-identical email, sometimes from a domain that's one letter off, with "updated" wiring instructions. Funds sent to that account typically move through several layers within hours, and recovery odds drop fast after that.

How the Scam Actually Works

Inbox Compromise

A criminal gains access to a real inbox somewhere in the transaction — agent, title company, or lender

They Watch and Wait

The thread is monitored silently, sometimes for weeks, learning names and closing timeline

Spoofed Last-Minute Email

Right before closing, "updated" wiring instructions arrive from a near-identical address or domain

Funds Move Fast

Wired funds move through layered accounts within hours — recovery odds drop quickly after that

Always Do This

Call your title company or us directly using a number you already had on file — never one from the email

Verify wiring instructions by phone before every single wire, even with parties you've closed with before

Treat any last-minute "updated instructions" email as an immediate red flag, especially right before closing

Check the sending domain letter-for-letter — watch for swapped characters like rn for m, or 0 for O

Red Flags

Any email claiming a bank or account change close to your closing date

Urgency language pressuring you to wire immediately without verifying first

A reply-to address that doesn't match the sender's actual domain

Instructions arriving outside normal business hours or from an unfamiliar sender

If You've Already Wired to the Wrong Account

Speed is the only real defense once funds leave. Call your bank immediately and request an emergency wire recall, file a report with the FBI's Internet Crime Complaint Center (IC3.gov), and notify every party in the transaction chain right away so they can flag the compromised thread. The first hour matters more than anything that comes after it.

Closing With Us? Verify Every Wire By Phone.

We will never change wiring instructions by email alone. If you receive an email claiming otherwise, call us directly before sending a dollar.

Wrap Mortgages & AITDs

Wrap Mortgages & AITDs:
How Hard Money Fits Around a Wrapped Existing Loan

A wrap mortgage (or all-inclusive trust deed, AITD) is a seller-financing structure where the existing underlying loan stays in place and the seller "wraps" a new, larger note around it — the buyer pays the seller, who keeps paying the original lender. Investors doing wrap deals in Texas often need hard money for a specific piece the wrap itself doesn't cover: renovation capital, a competing cash offer, or a bridge to refinance the wrap into permanent financing.

Underlying Note Stays

Original Loan Is Not Paid Off at Closing

Due-on-Sale Risk

Existing Lender May Have Acceleration Rights

Second-Position Capital

Hard Money Often Sits Behind the Wrap

Take-Out Timeline

DSCR/Conventional Refi Eventually Unwinds It

We see wrap structures most often on seller-financed acquisitions where the seller's existing mortgage has a rate well below current market, and neither side wants to disturb it. Where hard money comes in: funding a renovation on the wrapped property, providing a short-term bridge alongside the wrap to close quickly, or later refinancing the whole structure into a clean, single permanent loan once the underlying due-on-sale risk is resolved.

What We Look At

Renovation Capital Behind a Wrap

Hard money rehab funds layered alongside an existing wrapped seller-finance note

Bridge-to-Wrap Closings

Short-term funds to close fast while a wrap structure is finalized with the seller

Wrap Unwind / Refinance Bridge

Interim financing to pay off a wrap and its underlying note in one clean transaction

AITD Investment Property Acquisitions

Combining an all-inclusive trust deed purchase with hard money improvement capital

Strengthens the Deal

Clear, attorney-reviewed wrap/AITD documentation with a defined payment and servicing structure

A realistic exit plan to refinance out of the wrap structure within a defined window

Confirmation the underlying lender hasn't already exercised (or threatened) acceleration

Sufficient equity cushion behind the wrapped note to support the hard money position

Slows the Deal

No clear payoff or refinance plan for the underlying wrapped loan

Informal, undocumented wrap terms with no attorney involvement

Underlying lender has already sent a due-on-sale notice or demand letter

Thin equity margin once the wrap balance and hard money position are stacked together

Why the Underlying Note Matters to Us

Because the original loan doesn't go away in a wrap, we underwrite the full capital stack — the underlying note's balance and terms, the wrap itself, and where our hard money sits relative to both — rather than treating the property as if it's free and clear. A wrap deal with real equity cushion below all three layers is financeable; one where the layers barely fit isn't.

Working a Wrap or AITD Deal?

Tell us about the underlying note, the wrap terms, and what the hard money needs to cover. We'll structure around the real capital stack.

Get Your Hard Money Quote →

Zoning & Non-Conforming Use

Buying a Property for a Different Use?
Zoning Risk Changes How the Deal Gets Sized

A duplex conversion, a lot split, or a legal non-conforming structure all carry a layer of risk a conventional lender usually won't underwrite at all: the use you're planning for the property isn't guaranteed by right. Hard money can bridge that risk, but the timeline and outcome of a zoning process directly shapes how the loan gets structured.

Variance

vs. Special Use Permit

City-by-City

Process & Timeline

"Grandfathered"

Non-Conforming Status

Conservative

Sizing Until Approved

Zoning changes work through a handful of distinct paths, and they aren't interchangeable. A variance asks a city's zoning board of adjustment for a narrow exception to a specific rule (a setback, a lot-size minimum) without changing the underlying zoning designation. A special or conditional use permit asks permission to operate a use the zoning already allows, but only with case-by-case approval. A rezoning application asks the city council to actually change the base zoning classification — the slowest and least certain of the three. Notably, Houston is the major exception to all of this: it has no traditional zoning ordinance at all, relying instead on deed restrictions and platting/parking requirements, which is its own distinct due-diligence process for an investor used to zoned markets.

Where Zoning Risk Shows Up in an Investor's Deal

Single-Family to Duplex

Adding a second unit where current zoning only permits one dwelling per lot

Legal Non-Conforming Structures

A use or building that predates current zoning and is "grandfathered" — but can lose that status if discontinued too long or substantially rebuilt

Lot Splits & Subdivision

Dividing one parcel into two buildable lots under current subdivision and minimum-lot-size rules

STR & Occupancy Restrictions

Short-term rental permits and unrelated-occupant limits that operate separately from base zoning

Financeable With the Right Structure

You already own or are under contract, and the zoning application is filed or the non-conforming status is documented

The as-is use and value support the loan even if the requested change is never approved

A land use attorney or the municipal planning department has given a realistic read on approval odds and timeline

The hold period budgeted accounts for a zoning process that runs long, not the best-case timeline

Needs Resolution Before Closing

The entire exit plan depends on an approval that hasn't been filed and has real neighborhood opposition risk

A non-conforming use has already been discontinued long enough to have lost its grandfathered protection

As-is value alone (without the zoning change) doesn't support the loan amount needed

No one has actually confirmed the rule with the city — assumptions about what's "probably fine" aren't underwriting

Why This Gets Sized Conservatively

A variance or rezoning approval is never guaranteed, and boards can attach conditions that change the economics of a project after the fact. We underwrite to the property's value and use as it exists today, and treat an approved or in-process zoning change as upside rather than something the loan depends on — that's what lets us move at hard money speed on a deal a bank would decline outright for the zoning uncertainty alone.

Working Through a Zoning Change on a Deal?

Tell us what's filed and what the property is worth as-is today. We'll tell you what's financeable now.

Get Your Hard Money Quote →

Common Questions

Straight Answers. No Fluff.

28 years in hard money lending. Here’s what every borrower asks.

Correct. We do not pull your credit. Not even a soft pull. We are a pure asset-based lender. If you have a 400 credit score, a recent bankruptcy, or a foreclosure — none of that matters to us. We lend based on the property value and your equity. Nothing else.

We have closed in as few as 5 business days when the borrower had a clear title and was ready to move. Typical timeline is 7–14 days. The biggest delays are always on the title/closing side, not ours. Once we issue a commitment, we fund.

Our maximum is 65% of the property value — also called "as-is" LTV. We do not lend based on ARV (after-repair value) or projections. We lend on what the property is worth today. This protects both us and the borrower from over-leveraged situations.

Yes — this is where we specialize. Banks won’t lend on vacant buildings, distressed properties, or properties that need significant rehab. We lend on all of these. The property condition does not disqualify you with us — the equity is what matters.

Yes. Raw land, vacant lots, undeveloped acreage — we lend on all of it at up to 65% of current land value. Most hard money lenders won’t touch land. We do, because we understand Texas real estate and can assess land value accurately.

Your rate depends on property type, LTV, loan term and your experience, so we price the deal in front of us rather than publish a headline number — call 800-547-9081 for today’s rate. We have been lending in Texas for 30 years; you do not stay in this business that long by being the expensive option. Points (origination) are 2–4% of the loan amount, charged at closing — never upfront. No application fees. No processing fees. You don’t pay us until your loan closes.

Yes — we strongly encourage it. Most of our borrowers are LLCs, S-corps, or trusts. Entity structure does not affect your approval. We lend to entities without requiring personal guarantees in many cases — call to discuss your specific structure.

Our primary market is Texas. We know Texas real estate deeply — valuations, markets, and title process. For out-of-state deals, call us and we may be able to refer you to a trusted partner lender in your state.

Apply Now — No Credit Pull ✆ 800-547-9081

Loan Assumption & Transfer

Can a Hard Money Loan Be Assumed or Transferred?

Selling a property mid-loan, adding a partner, or moving title into an LLC? Here's how loan assumption and transfer-on-sale actually work on a hard money loan.

Most hard money notes contain a due-on-sale clause, meaning the loan becomes payable in full the moment title transfers — unlike some conventional loans, a hard money loan is rarely designed to be assumed automatically by a new buyer. That said, "not automatic" isn't the same as "impossible." Lenders routinely approve a structured assumption or entity transfer when the underlying deal still makes sense — the borrower is simply asking the wrong first question if they assume the note is locked to the current owner no matter what.

Common Situations That Trigger This Question

The most frequent scenario is a mid-project sale: an investor starts a fix-and-flip, gets partway through renovation, and gets an offer to sell before completion — sometimes to a partner or another investor who wants to finish the project themselves. A second common case is moving title from an individual name into an LLC for liability protection after closing, which technically triggers the same due-on-sale language even though the beneficial owner hasn't changed. A third is adding or removing a partner on title mid-loan.

What Actually Happens

For a genuine third-party sale, the incoming buyer typically needs to qualify for a new loan in their own name — we underwrite them the same way we'd underwrite any new borrower, then pay off and replace the existing note at closing. For an entity transfer where the beneficial owner isn't really changing (individual to their own single-member LLC, for example), we can often process a straightforward loan modification instead of a full new underwrite, since the risk profile hasn't meaningfully shifted.

Will I get hit with a prepayment penalty if the note gets paid off early due to a sale?

Depends on the note — some hard money loans carry a short minimum-interest period, others don't. Check your note's specific terms, and ask before you're under contract to sell.

Can my buyer just take over my existing loan at my rate?

Only through a formal assumption approval, and only if we underwrite them independently — rates and terms are not automatically inherited.

Does moving title into my LLC after closing violate my loan?

Technically it can trigger the due-on-sale clause — call us before you do it so we can process it as a modification instead of a surprise default notice.

Selling mid-project or restructuring title?

Talk to us before the transfer happens — most of these situations have a clean path if we know in advance.

Who We Work With

Hard Money Is for Investors Who Move Fast — Do You See Yourself Here?

We fund deals for six types of borrowers. If your situation matches, we can almost certainly help.

🛠

The Fix & Flip Investor

Residential or Commercial Rehab

“I found a great deal but I need to close in 10 days before someone else grabs it.”

9–14 day closes — beat cash buyers
Purchase + rehab in one loan
Draw schedule as work is completed
Up to 65% of purchase (ARV programs available)

📈

The Landlord / Buy & Hold

Bridge to Permanent Financing

“I need a short-term loan to acquire while I get my long-term financing in order.”

Bridge loan — 6–24 month terms
Close fast, refi into permanent after
No prepayment penalty after 6 months
Distressed or vacant OK

🏦

The Credit-Challenged Buyer

Bad Credit, Bankruptcy, Foreclosure

“My credit is rough. I was told no everywhere. But the property has solid equity.”

No credit check — ever
Recent bankruptcy or foreclosure OK
The property is the qualification
65% LTV or lower — equity is king

🏛

The Commercial Developer

Construction, Mixed-Use, Value-Add

“I have a commercial project that banks won’t touch until it’s further along.”

Vacant or partially-occupied OK
Construction / rehab draws available
LLC and entity borrowers
All commercial property types

🏠

The Estate / Probate Buyer

Inherited Property, Quick Settlement

“I inherited a property and need to either buy out the estate or liquidate quickly.”

Probate and estate sales funded
Close in days — not months
Heirs and trust borrowers welcome
Distressed condition not a problem

💰

The 1031 Exchange Buyer

Exchange Deadline Pressure

“My 45-day ID period is ticking and conventional financing can’t close in time.”

Close in days — meet 1031 deadlines
Bridge until exchange funds arrive
Intermediary coordination available
All Texas property types

If you see your situation above — or something close to it — we can probably fund it. Fill out the quick form and find out in 24 hours.

Tell Us About Your Deal →

First-Time Flippers

Your First Fix & Flip in Texas: A Complete Guide From Offer to Profit

Never flipped before? Most of our borrowers did their first deal with hard money. Here’s exactly how it works — and the numbers you need to hit.

Find the Deal (Below Market)

You need to buy at a discount to make the math work. Target properties at 65–70% of ARV (after-repair value) minus rehab costs. Off-market, probate, estate sales, and foreclosures are the best sources.

Rule of thumb: Max offer = (ARV × 0.70) − rehab cost

Get a Hard Money Commitment

Before you make an offer, know your financing. Call us, describe the deal (address, purchase price, estimated ARV, rehab budget). We’ll tell you on the spot if it qualifies and at what terms.

Pro move: Get a term sheet before making your offer — sellers take cash-equivalent buyers more seriously.

Close Fast, Start Rehab

Hard money closes in 9–21 days. Have your contractor lined up before closing so you can start the rehab within days of funding. Every week the property sits is money out of your profit.

Key: Get 3 contractor bids before closing. Never start with only one bid.

List 2–3 Weeks Before Completion

List the property before the last coat of paint. You want offers coming in as soon as the property is ready — not after. Price at or slightly below comparable sales to generate competing offers fast.

Goal: Contract signed within 30 days of listing. Time on market = interest expense.

Close the Sale, Pay Off the Loan, Keep the Profit

At closing, the title company pays off your hard money loan from the proceeds. Whatever’s left after all costs — purchase, rehab, interest, agent fees, closing costs — is your profit.

Do immediately: Call us about the next deal while you have momentum.

$55KAverage first-flip profit in TX (2025)

4–7 moTypical first flip timeline

20–30%Minimum down payment needed

$0Credit score required to apply

The Flip Math: A Real First-Time Deal in Texas

$280KARV (after repair)

−

$45KRehab cost

−

$155KPurchase price

−

$22KInterest + fees + closing

Net Profit: $58,000 | Cash-on-Cash Return: 105%

⚠ 4 Mistakes First-Time Flippers Make (That Kill the Profit)

✗Underestimating rehab: Add 20% buffer to every contractor bid. First-time flippers always find surprises once walls open up.

✗Overpaying for the property: Emotion kills deals. If the numbers don’t work at your max offer, walk away. The next deal is always coming.

✗Listing too late: List while the paint is still drying. Every extra week costs ~$1,500–$2,500 in interest + carrying costs.

✗Starting without an exit plan: Know before you close whether you’re selling or refinancing. Your lender will ask on day one — we require it.

I’m Ready for My First Deal — Apply Free →

Setting the Record Straight

5 Myths About Hard Money Lenders — And the Truth

Hard money has a reputation. Some of it is earned (there are bad actors). Most of it isn’t. Here’s the truth.

Hard money lenders are predatory loan sharks

Legitimate hard money is a licensed, regulated financial product. We’ve operated in Texas for 28 years. We’re required to disclose all terms in writing before closing. The “loan shark” image is from illegal consumer lending — not commercial real estate bridge financing backed by real property.

They’ll take your property at the first opportunity

Foreclosure is expensive, slow, and not our business model. We make money by funding loans and getting paid back — not by acquiring properties. In 28 years we’ve always preferred to work with a borrower who hits a speed bump rather than initiate foreclosure. We communicate early. We structure extensions when situations change.

Hard money is only for desperate borrowers

Hard money is a speed and flexibility tool. Our best clients are sophisticated investors who know exactly what they’re doing — and choose hard money because closing in 9 days beats waiting 60 for a bank that might still say no. Desperation has nothing to do with it. Opportunity cost does.

The fees will eat up all my profit

Hard money costs are fixed and transparent. Origination fee (1–3 points) + interest for the hold period. On a 6-month flip with a 25% gross margin, hard money costs represent 3–6% of the deal. Run the numbers. The math usually works. Use our calculator above to check your specific deal.

They won’t actually close — they’re just stringing me along

That’s how bad actors operate. We don’t. We give you a written term sheet within 24–48 hours of application. We never collect upfront fees before committing. If we say we can fund your deal, we close it. Our 28-year track record and 37+ Google reviews say the same thing.

You need perfect credit to get a good rate

We don’t pull credit. At all. Our entire underwriting is based on the property — its value, its LTV, and your exit plan. A 500 credit score with strong equity gets the same rate as an 800 score. The asset qualifies the loan. Your FICO is irrelevant here.

Have a deal you’re not sure about? Call us. We’ll tell you in 5 minutes if it works — and what it costs.

✆ 800-547-9081 — No Pitch, Just Answers

Exit Planning

Before You Borrow Hard Money, Know How You’re Paying It Back

We ask every borrower for an exit strategy on day one. Here are the six most common — and which ones work best for each situation.

💰

Exit #1Sell the Property

Buy, rehab, list, sell. Profit pays off the loan. The classic fix-and-flip exit. Works best when ARV is well above all-in cost and you have a strong local agent.

⏰ Typical: 4–9 months

🏢

Exit #2Refinance into DSCR

Rent the property, then refinance into a 30-year DSCR loan once it’s stabilized. Pulls equity out, keeps the asset. The BRRRR strategy lives here.

⏰ Typical: 3–6 months

🏛

Exit #3Conventional or Bank Refi

Use hard money to acquire fast, then refinance into a conventional or commercial bank loan once the property is stabilized and you have time to qualify.

⏰ Typical: 6–12 months

📈

Exit #4SBA or Govt Loan

Owner-occupied commercial property? Use bridge funding to acquire, then transition to SBA 7(a) or 504 for long-term low-rate financing. Approval takes 45–90 days — start the process at day one.

⏰ Typical: 3–5 months to SBA close

💰

Exit #51031 Exchange Proceeds

Using hard money as a bridge while waiting for exchange funds to clear. Once the 1031 exchange completes, the replacement property loan pays off the bridge. Timing is critical — plan with your QI.

⏰ Typical: 30–60 days

💼

Exit #6Cash from Other Sources

Investors who have liquidity from other sales, business income, or portfolio can simply pay off the hard money loan with available cash. Simplest exit — lowest cost.

⏰ Anytime after min. period

⚡ Our policy: We discuss your exit strategy on the first call — before we issue a term sheet. Not because we don’t trust you, but because we want the loan to close successfully. If your exit plan is realistic, we’ll structure the term length to match it. If it isn’t, we’d rather tell you now than surprise you at month 11.

Apply Now — Tell Us Your Exit Plan →

What We Lend On

If It Has Equity in Texas, We Can Lend On It.

Banks have an approved property list. We don’t. Here’s what we fund — including the deals everyone else turns down.

🏠

Single-Family Home

Owner-occupied or investment. Distressed condition OK.

✓ Up to 65% LTV

🏚

Multi-Family (2–20 Units)

Duplexes, fourplexes, small apartment buildings.

✓ Up to 65% LTV

🏢

Commercial Building

Retail, office, mixed-use. Vacant or occupied.

✓ Up to 60% LTV

🏭

Warehouse / Industrial

Flex space, manufacturing, storage facilities.

✓ Up to 60% LTV

🌳

Raw Land & Lots

Undeveloped acreage, vacant lots, rural parcels.

✓ Up to 65% LTV

🛠

Distressed / Fixer Properties

Needs major rehab, fire-damaged, code violations.

✓ Our Specialty

🏛

Vacant Buildings

100% vacant commercial or residential — no problem.

✓ Banks Say No. We Don’t.

🎨

Mixed-Use

Retail below, apartments above. Complex deals welcome.

✓ Up to 60% LTV

⛨

Church / Religious

Houses of worship, sanctuaries, ministry buildings.

✓ Asset-Based

🚊

Mobile Home Park

Land-owned parks. Case-by-case review.

✓ Call to Discuss

🏪

SFR Portfolio

Multiple single-family rentals as cross-collateral.

✓ Blanket Loan OK

❓

Something Else?

If it has equity and it’s in Texas, call us. Seriously.

✓ 800-547-9081

⚠ We do NOT lend on: Owner-occupied primary residences (Texas law restricts hard money on homesteads), properties outside Texas, or properties where LTV exceeds 65%. Everything else is fair game. Call us and ask — the answer is usually yes.

Tell Us About Your Property → ✆ 800-547-9081

Hard Money Loans With No Credit Check — What That Actually Means

Asset-based lending does not price off your credit score, which is why investors describe it as a no-credit-check loan. That is close to true, and the part that is not true matters — so here is exactly what we look at and what we ignore, before you spend a week finding out.

What decides your loan

Equity in the property. Your down payment on a purchase, or real equity on a refinance. This is the single biggest factor.
The property itself — value, condition, location and how quickly it could be resold if it came back to us.
Your exit. A sale, a refinance into long-term debt, or stabilised rent. A loan with no exit is the one we decline.
Experience. Previous projects help your terms. First-timers still close, generally at lower leverage.
Ability to carry payments through the term, including the interest reserve if the property produces no income yet.

What does not decide it

Your FICO score. No minimum. Scores in the 500s close here every month.
Debt-to-income ratio. We are not underwriting your household budget.
Tax returns and W-2s. Not required. Self-employed, 1099 and entity borrowers are the norm, not the exception.
Medical collections, charge-offs or a thin file. Not relevant to an asset-based decision.
A past bankruptcy or foreclosure, once it is discharged or completed.

The honest caveat

We do generally pull credit, and we will not pretend otherwise. We are looking for three specific things: an open bankruptcy, a foreclosure currently in process, and judgments, tax liens or unpaid property taxes that would cloud title at closing. Those affect whether the deal can close at all, not what it costs. Nothing else in the report changes your rate.

If a lender tells you there is no credit pull whatsoever, ask how they plan to clear title. Texas hard money is asset-based, not blind.

Do you pull my credit at all?

Usually yes, but not to price the loan. We look for items that affect the collateral or the exit — an open bankruptcy, a foreclosure in process, unpaid property taxes, or judgments and liens that would cloud title. A low score on its own does not decline a deal here.

What is the minimum credit score?

There is no score floor on an asset-based loan. Experienced investors with scores in the 500s close with us regularly. What moves your terms is equity, exit and experience — in that order.

What do you check instead?

The property value and condition, your down payment or existing equity, the rehab budget if there is one, how the loan gets repaid, and whether you have done this before. We also verify you can carry the interest payments during the term.

Can I get a hard money loan with a recent bankruptcy or foreclosure?

Often yes, once it is discharged or completed. An open bankruptcy is a genuine obstacle because the court controls the asset. Tell us where it stands on the first call and we will tell you straight away whether it is workable.

Is a no-credit-check loan more expensive?

Hard money is priced above bank debt because it is short-term, interest-only and secured by an asset rather than a credit profile — not because your score is low. Two borrowers with very different scores and the same deal get very similar terms from us.

Tell us the property and your down payment. We will tell you yes or no today — and your score will not be the reason either way.

Call 800-547-9081

Ten Questions to Ask a Hard Money Lender Before You Sign

Every one of these has a right answer, and a lender who dodges any of them is telling you something. Ask them in this order — the first two eliminate most of the problems in this industry.

Are you the lender, or are you brokering my loan?

Both are legitimate, but they behave differently when a condition needs to change three days before closing. A direct lender can decide; a broker has to go and ask, and you will not be in the room. Ask plainly, and ask whose money funds the wire.
What do I pay before I have terms in writing?

The correct answer is nothing. Application fees, "processing" fees, commitment fees and due-diligence retainers collected up front are the single most common pattern in advance-fee lending fraud. Appraisal and title are real third-party costs — they should be payable to the third party, not to the lender.
Who makes the credit decision, and have they read my file?

Ask for a name and a role. If the person you are talking to cannot tell you who decides, your file has not been underwritten yet — you are still talking to sales.
What is the all-in cost, not the rate?

Points, origination, document, processing, inspection and draw fees, plus any exit or prepayment charge. A 10% loan with four points and a six-month minimum interest clause can cost more than a 12% loan without them. Get the total in dollars for your actual term.
How do draws work, and how fast are they?

On a rehab or construction loan this matters more than the rate. Ask who inspects, how they are scheduled, how many days from request to wire, and whether you fund the first stage yourself. A lender with slow draws will stall your contractor.
What is the actual term, and what happens if I need longer?

Rehabs run late. Ask the extension terms and cost before you sign, not in month eleven. A written extension option is worth real money.
Is there a prepayment penalty or minimum interest period?

If you plan to sell in four months, a six-month minimum interest clause quietly adds two months of payments to your cost. This is the most commonly missed term in hard money.
Have you funded a deal like mine, in this market, recently?

Not total volume. A lender with a large multifamily book and no experience with rural land or a strip centre is the wrong lender for yours, however impressive the numbers sound.
Can I speak to a borrower you funded this year?

A real lender can produce one. Ask about surprises at closing and how draws went — not whether they were happy.
What kills this loan?

The best question on the list. A lender who has read your file can name two or three real risks in a sentence each. Vague reassurance means nobody has looked yet.

Our answers, in one paragraph

We are a direct Texas hard money lender. There are no upfront fees — nothing is payable to us before you hold written terms, and appraisal and title are paid to those vendors. The person who reads your file can approve it. Minimum loan is $100,000. Terms, points, draw process and any minimum interest period are stated in writing before you sign anything, and we will tell you on the first call if your deal does not work here.

Ask us all ten: 800-547-9081, or send the deal through the written quote form.

Buying Texas Property From Out of State

Roughly half the investors we fund live somewhere else. Texas works for them because there is no state income tax, prices are reasonable relative to rents, and closings are fast. These are the six things that catch out-of-state buyers, in the order they cause problems.

You do not need to be a Texas resident — or come to Texas

We fund non-resident investors routinely. Title companies here close remotely as a matter of course: documents are sent to a notary near you, or to a remote online notary where the title company permits it. Most of our out-of-state borrowers never see the closing table.

Hold title in an entity, and register it properly

An out-of-state LLC can own Texas property, but if it is doing business here it generally needs to register with the Texas Secretary of State as a foreign entity and maintain a registered agent with a Texas address. Sort this before closing — an unregistered entity on the deed creates title and enforcement problems later, and lenders will ask.

There is no state income tax, but property tax is the highest cost

Texas has no personal income tax, which is a real part of the investment case. It funds local government through property tax instead, and effective rates in many counties run roughly 1.5% to 2.5% of assessed value. Investors from low-property-tax states routinely underwrite Texas deals with a number that is half what they will actually pay. Pull the county appraisal district figure for the exact parcel — not a state average — and check whether the seller held an exemption you will lose.

Insurance is not a rounding error here

Hail and wind drive Texas premiums well above what coastal-California or Midwest investors expect, and coastal counties add windstorm coverage. Get a real quote on the specific address during your option period. A builder's risk policy is required while a property is under renovation, and a vacant property on a standard landlord policy may not be covered at all.

Foreclosure is fast, which cuts both ways

Texas is a non-judicial foreclosure state — a lender can complete a trustee sale on the first Tuesday of a month with roughly three weeks' notice, without going to court. That is why hard money here is quick and competitively priced. It is also why your exit plan needs to be real: there is far less runway than in a judicial state if a project stalls.

Line up boots on the ground before you close

The single biggest predictor of a failed out-of-state project is not financing — it is having no one local. A general contractor you have checked, a property manager, and someone who can physically look at the building. We inspect for draw purposes, not for you.

Where we lend: our hard money and bridge lending is on Texas property — you can live anywhere. Minimum loan $100,000, no upfront fees, and we will tell you on the first call whether the deal works.

Call 800-547-9081 or send it through the written quote form. If you are not sure the numbers work, say so — we would rather talk you out of a bad deal than fund it.

Know Your Options

Hard Money vs. Seller Financing — Which One is Right for Your Deal?

Both can close fast when banks say no. But they work very differently — and picking the wrong one costs you money.

Hard Money Loan

3rd-party lender, property as collateral

Close Speed

9–21 days

Down Payment

30–40% (65% max LTV)

Rate

Quoted on your deal

Term

6–24 months typical

Credit Required

Flexible — asset-based

Docs Required

Minimal — no tax returns

Property Condition

Distressed OK, needs-work OK

Exit Strategy

Sell, refi, or DSCR refi

Who Controls Terms

Lender sets rate/LTV/term

Best Scenario

Fix & flip, bridge, time-sensitive deals

Seller Financing

Seller acts as the bank

Close Speed

7–30 days (negotiable)

Down Payment

Negotiable — sometimes 5–10%

Rate

Quoted on your deal

Term

3–10 years, balloon common

Credit Required

Seller’s discretion — none required

Docs Required

Promissory note + deed of trust only

Property Condition

Depends on seller’s risk tolerance

Exit Strategy

Must refi when balloon hits

Who Controls Terms

Buyer + seller negotiate everything

Best Scenario

Long-term holds, motivated sellers, free-and-clear properties

When to Use Which — Real Scenarios

Use Hard Money

The Auction Purchase

You won a courthouse steps auction on a distressed 4-plex. Payment due in 48 hours. No seller to negotiate with — hard money is the only option. We’ve closed auction purchases in 9 days.

Use Seller Financing

The Motivated Retiring Landlord

Seller owns free-and-clear and wants monthly income instead of a lump sum. You negotiate a 7% note with 10% down, $800/month going to the seller. No closing costs, no lender. Works when both sides benefit from the arrangement.

Use Hard Money

The Fix & Flip

Distressed single-family in Dallas that needs $60K in rehab. Banks won’t touch it in current condition. Hard money funds acquisition + holds a rehab draw account. You renovate, sell, pay off the loan — done in 6 months.

Use Both Together

The Wraparound Mortgage

Seller has an existing low-rate note. You assume the seller’s debt, seller carries a second note at a blended rate. Hard money bridges while the assumption is processed. Complex but powerful for rate-locked deals.

Use Seller Financing

Unique Property That Won’t Appraise

Rural acreage, specialty commercial, or a property with stigma (former business, older construction). Lenders and appraisers struggle with comps — but a willing seller can carry paper at any agreed price.

Use Hard Money

Bridge to SBA or Conventional

You found the right owner-occupied commercial building. Seller won’t wait 75 days for SBA approval. Hard money closes in 18 days. You start SBA paperwork at closing. Hard money pays off when SBA funds.

⚠ The Seller Financing Risk Nobody Talks About

Seller financing balloons. Most seller-financed notes have 3–7 year terms with balloon payments. When the balloon comes due, you must refi into conventional financing — but rates, your credit, and the property’s condition may have changed. If you can’t refi, you risk losing the property. Hard money is short-term by design but has a clear exit path. Seller financing can trap you in a balloon you can’t refinance out of. Always model your balloon exit before accepting seller-financed terms.

Get a Hard Money Quote — Free, No Obligation →

Fix & Flip Financing

How Rehab Draws Work — So You’re Never Waiting on Money

Construction draws aren’t complicated when you know the rules upfront. Here’s exactly how we release rehab funds — and how to keep your project moving without delays.

Typical 4-Draw Schedule

Draw 1

Demo + Rough Work

Released after: demo, framing, rough plumbing/electrical, HVAC rough-in complete. Inspector confirms work is done.

25% of rehab budget

Draw 2

Drywall + Mechanicals

Released after: drywall hung and taped, insulation complete, mechanicals pass rough inspection by local municipality.

25% of rehab budget

Draw 3

Finishes + Fixtures

Released after: flooring, cabinets, countertops, tile, paint complete. Property is finish-ready. Interior walkthrough by inspector.

30% of rehab budget

Draw 4

Final / Completion

Released after: CO (certificate of occupancy) obtained, final punch list complete, lender drive-by inspection confirms project is done.

20% of rehab budget

Draw Rules That Protect Your Timeline

⏱

Draw turnaround: 2–3 business days

Request a draw Monday, inspector visits Tuesday, funds wire Wednesday. Plan your contractor payments around this cycle — not same-day.

📌

Inspection triggered by you

You call for an inspection when the work is done — not on a calendar schedule. Faster rehab = faster draws. One project closed in 6 draws over 9 weeks.

📄

Draw request = simple form

Email us a one-page draw request with photos of completed work. No bank portal, no contractor notarized lien waivers on draw 1–3. Simplified process by design.

✅

No funds held until end

Some lenders hold 10% retainage until final CO. We don’t. All 4 draws release at 100% when work is verified — no gotcha holdback eating into your cash flow.

💰

Interest accrues on drawn funds only

You’re not paying interest on the full rehab budget from day 1. Interest accrues only as funds are drawn. Slower project = lower total interest cost.

🔧

Scope changes require approval

Adding scope mid-project (e.g., adding a bathroom, converting a garage) requires a budget amendment. Approval is typically 24–48 hours — don’t start scope changes without it.

Real Example: $285K Dallas Flip, $65K Rehab Budget

Phase Work Completed Draw Released

Draw 1 — Wk 2Demo, framing, rough electrical & plumbing$16,250

Draw 2 — Wk 4Drywall, insulation, mechanicals inspected$16,250

Draw 3 — Wk 7Flooring, cabinets, countertops, paint, fixtures$19,500

Draw 4 — Wk 9Final punch list done, CO obtained, inspection passed$13,000

Listed Wk 10Sold at $389K — $74K gross profit in 11 weeks$65,000 total

Apply for Fix & Flip Financing — Free Term Sheet →

Contractor Network

Don’t Have a Texas Contractor? We Can Help.

Out-of-state investors and first-time flippers often have great deal instincts but no contractor relationships. After years of funding Texas flips, we know who to call — and who to avoid.

Trades We Can Refer

🏠

General Contractors

Full rehab project management — from demo through CO. Handle scheduling all sub-trades.

DFW / Houston / San Antonio / Austin

⚡

Licensed Electricians

Panel upgrades, rewires, EV chargers, rough-in for new construction.

Major TX metros + surrounding counties

🚴

Master Plumbers

Repiping, sewer lines, fixture installs, pressure problems, water heaters.

All major TX metros

❄

HVAC Contractors

System replacements, mini-splits, ductwork, inspections. Texas heat makes HVAC critical to appraisals.

Statewide referrals available

🏠

Roofing Companies

Full replacements, hail damage, flat roof, TPO/EPDM for commercial properties.

DFW / Houston / San Antonio

🏗

Structural / Foundation

Pier-and-beam repair, slab leveling, retaining walls. Texas clay soil makes this a common need.

Statewide, certified engineers

Why We Maintain a Contractor Network

✅ Our loan is secured by your project. When your contractor performs, your project closes faster and our collateral is protected. We have skin in the game on your rehab.

✅ Contractors who’ve worked with us before understand our draw inspection process — they know what the inspector needs to see to release funds. Less back-and-forth, faster draws.

✅ We’ve seen which contractors overbid, which ones disappear after the first draw, and which ones actually finish. Our referrals reflect years of first-hand observation on funded deals.

✅ No referral fees. We don’t take kickbacks from contractor introductions. Introductions are a service to our borrowers — full stop.

Out-of-State Flipper Playbook

Buying in Texas without being here is harder than it looks. Here’s how our most successful out-of-state investors do it:

1Identify the property and run the numbers remotely. Use our Deal Check calculator to pre-qualify.

2Fly in for one day to walk the property. Get contractor bids on-site. This trip typically pays for itself 10×.

3Ask us for contractor referrals in that market. We’ll introduce you to a GC who can run the project while you’re remote.

4We release draws on inspector approval — you get photo documentation of every phase. Manage remotely with confidence.

5List remotely with a Texas listing agent. Proceeds pay off the hard money loan. Done.

Apply + Request Contractor Introductions →

First-Time Borrower Guide

First Time Using Hard Money? Every Question You’re Afraid to Ask — Answered.

Hard money lending has a reputation for being complicated. It’s not. Here are the 8 questions every first-timer asks us.

What exactly is hard money, and why is it called that? +

The name "hard money" comes from the loan being backed by hard assets (physical real estate) rather than your personal financial profile. It has nothing to do with the loan being "hard to get" — in fact, hard money is typically faster and easier to qualify for than conventional financing. The lender's primary question is: Is this property worth enough to secure the loan if you don't pay? That's it. Your income, tax returns, and credit score are secondary.

Is hard money safe? What if I can't make payments? +

Hard money is a secured loan — the property is the collateral. If you stop making payments, the lender can foreclose. This is the same as any other real estate loan. The key difference: hard money terms are short (6–24 months), and borrowers have a known exit plan (sell or refinance). The risk is real, but it's contained: you entered with an exit strategy, and as long as that strategy holds, the loan performs.

Pro tip: Never take a hard money loan without a clear, documented exit strategy. If you're relying on selling the property, know your local comp values and days-on-market before you borrow.

Why is the rate so much higher than a bank? +

Hard money lenders take on risks that banks won't: distressed properties, fast timelines, self-employed borrowers, non-stabilized income. That risk premium shows up in the rate (typically 9.5–12%). But the math works because:

1. You're borrowing for a short time. 9 months at 10% = 7.5% total interest cost — not that different from a year of bank fees and delayed closing losses.
2. The cost of not closing is often higher. Losing a deal that makes $60K in profit because you saved 2% on rate is bad math.
3. Hard money enables deals banks won't touch. If the bank could do it, you'd use the bank.

Do I need good credit to get approved? +

Credit matters, but it's not the primary factor. We've funded deals for borrowers with 580 credit scores when the property equity was strong and the deal made sense. We've also declined borrowers with 750 scores when their LTV was too high or their exit strategy was unclear.

What we actually look at: LTV (loan-to-value), the property condition, your exit strategy, and your experience level. A first-time borrower with a clean deal at 55% LTV and a clear plan will get approved faster than an experienced investor at 72% LTV with a shaky exit.

What does "interest-only" mean? How does my payment work? +

Hard money loans are almost always interest-only. This means your monthly payment covers only the interest — no principal is paid down during the loan term. On a $250,000 loan at 10%, your monthly payment is $250,000 × 10% ÷ 12 = $2,083/month.

When the loan matures (or when you sell/refinance), you pay back the original $250,000 in full. This structure keeps monthly carrying costs low while the project is in progress, which is ideal for fix-and-flip and bridge scenarios where cash flow is tight.

How does the appraisal work? What does "as-is" vs "ARV" mean? +

As-is value is what the property is worth today, in its current condition. This is what we typically lend against for bridge loans and buy-and-hold deals.

ARV (After-Repair Value) is what the property will be worth after planned renovations are complete, based on comparable completed sales in the area. Some lenders (including us in certain scenarios) will lend a percentage of ARV instead of as-is value — which means a higher loan amount relative to what you're paying today.

Example: You buy a distressed house for $180K. As-is value is $185K. ARV is $290K. An as-is lender gives you 65% × $185K = $120K. An ARV lender might give you 70% × $290K = $203K. The difference can change whether a deal is fundable.

Ask us which basis we're using before you sign a purchase contract. It affects your required down payment significantly.

What happens at the end of the loan term? +

You have three options at maturity:

1. Sell the property — sale proceeds pay off the loan. Most common for fix-and-flip borrowers.
2. Refinance into long-term financing — DSCR loan, conventional, or SBA pays off the hard money loan. Most common for rental investors.
3. Request an extension — if your project is on track but not quite done, most lenders (including us) will extend for 3–6 months for a small fee. Extensions aren't guaranteed — plan your timeline conservatively.

What you can't do: Simply stop paying and hope the lender doesn't notice. The loan balloon is a real deadline. Plan for it from day one.

I’ve never done a deal before. Will you work with me? +

Yes — with the right deal structure. First-timers are welcome and we fund them regularly. What we look for when experience is limited:

Lower LTV than experienced borrowers (55% instead of 65%)
Clear, documented exit strategy with realistic comps
Conservative scope of work — no $80K full gut rehabs for the first project
Willingness to take on a slightly higher rate in exchange for our mentorship

Tell us upfront that it's your first deal. Hiding it and getting discovered mid-underwriting creates problems. Honesty on deal #1 is how you earn the relationship that gets you better terms on deals #2–10.

Ask Us About Your First Deal — Free, No Obligation →

Exit Strategy Planning

5 Exit Strategies for Hard Money Loans — Compared

Your exit strategy determines your loan term, LTV, and whether we say yes. Here’s what each exit looks like in practice — with real numbers.

Exit 1: Sell the Property

Fix & flip — most common

Typical loan term needed6–12 months

Success depends onARV accuracy + market speed

Biggest riskMarket softens after buy

Our max LTV65% as-is

Extension available?Yes — 3–6 months

DifficultyLow — most straightforward

Exit 2: Conventional Refi

Stabilize then refi

Typical loan term needed9–18 months

Success depends onStabilized lease + seasoning

Biggest riskRates rise; refi terms worsen

Our max LTV65%

Credit required at refi700+ for conventional

DifficultyMedium — needs full doc refi

Exit 3: DSCR Refi

Private Money vs. Hard Money — What’s the Actual Difference?

Investors use these terms interchangeably. They’re not the same. Here’s what the difference means for your deal — and why it matters who you call.

	Hard Money Lender (Us)	Private Money Lender
Who is lending the money?	Institutional fund — dedicated capitalConsistent availability, no dry powder risk	Individual investor's personal fundsCapital dries up deal to deal
How fast can they actually close?	9–21 days — reliablyRepeatable process with in-house underwriting	Varies widely — days or monthsDepends on investor's schedule + diligence
Loan documentation	Standardized — clear term sheetYou know exactly what you’re signing	Handshake-style promissory notesTerms vary, less legal protection
Rate range	Quoted on your dealTransparent, consistent with deal type	8–15%+ (no standard)Wide range — depends on relationship
Can they do multiple deals?	Yes — unlimited capacityFund 3 deals at once, no problem	Limited by individual net worthOne active loan may be their max
Rehab draw administration	Structured draw process, inspection-basedDraws in 5–7 business days	Informal — no standard processCan become contentious mid-rehab
Recourse if deal goes sideways	Clear foreclosure process, legal docsBoth sides know exactly what happens	Can be messy — personal relationship riskDestroys relationships + creates litigation
Best for	Any deal needing speed + reliabilityProfessional investors who need a real partner	Below-market rates if you know the right personGood when you have the relationship already

“Private money is always cheaper than hard money.”

Not true. Unsophisticated private lenders often charge 12–15% with 4–6 points because they don't know market rates. Professional hard money lenders are usually 10–12% with 2–3 points — competitive with private money once you factor in reliability and draw administration.

“Hard money lenders will foreclose on me the moment I'm late.”

We want our principal back and our interest paid — not your property. Foreclosure is expensive and slow (60–90 days minimum in Texas). Our first call is always "what do you need to get this closed?" Extension, modification, or sale — we work it out.

“I should use private money for my first deal.”

First-time investors often use a private lender they know — a family member or friend. This is fine for a simple buy-and-hold. For a fix-and-flip with multiple draws and a tight timeline, an institutional hard money lender is the better call. Fewer relationship landmines.

“Hard money means predatory lender.”

"Hard" refers to the collateral (hard asset = real property) not the terms. We're not loan sharks. We're asset-based lenders who look at the property first. The rates are higher than bank rates because we take more risk, fund faster, and require less documentation — you're paying for speed and flexibility, not getting gouged.

When To Use Each

Use Hard Money When

You need to close in under 3 weeks — deal with multiple draws (fix & flip) — commercial or multifamily acquisition — bank declined — you need documentation and certainty — scaling your portfolio

Private Money Works When

You have a long-standing relationship with the lender — simple buy-and-hold with no draws — the rate offered is genuinely below market — small deal under $100K where institutional lenders won't look

Get a Hard Money Term Sheet in 24 Hours →

Condo Conversion Bridge Loans in Texas

A condo conversion takes an existing building — most often an apartment complex, sometimes an older hotel or a half-vacant office building — and repositions it into individually titled condominium units sold to separate owners. It's a fundamentally different play than new construction: the shell already exists, the value-add is in unit-level renovation, mechanical separation, and the legal work of creating a condominium regime, and the exit is a string of individual retail sales rather than a single stabilized-asset refinance or bulk sale.

Why Banks Pass on This Deal Type

Banks like collateral they can categorize cleanly: an apartment loan, an office loan, a construction loan. A conversion in progress is none of those — it's a multifamily or commercial asset mid-transition to a for-sale product, with an uncertain absorption schedule and a blanket lien that has to release units one at a time as they close. That "moving target" collateral profile, combined with a business plan that depends on retail sale velocity rather than lease-up, is exactly the kind of deal conventional CRE underwriting is built to decline rather than price.

The Texas Legal Mechanics

Converting a building to condominium ownership in Texas means recording a condominium declaration under the Texas Uniform Condominium Act, platting the individual unit interests and common-element percentages, and forming the homeowners' association that will govern the property going forward — all before the first unit can close to an individual buyer. None of that paperwork moves quickly, and a lender unwilling to fund past the point where a clean, bank-financeable single asset exists is a lender who can't carry a conversion project through its most legally complex phase.

What the Bridge Actually Funds

Beyond acquisition of the underlying building, conversion capital typically covers unit-level renovation (finishes, appliances, in some cases separating shared mechanical systems so each unit can be individually metered for utilities — a common requirement before individual units can be sold and financed separately), common-area and amenity upgrades that support a higher per-unit sale price, and carrying costs during the legal conversion process itself. Draw-based hard money structures this the same way we structure any value-add renovation loan — funds released against completed, inspected work — while building in the release-price mechanics a conversion actually needs: as each unit sells, a pre-negotiated release amount pays down the blanket loan rather than requiring the entire balance to be retired before any capital comes back to the sponsor.

Office-to-Condo: A Growing Variant

Underused office buildings converting to for-sale residential condos has become a more common conversation in Texas metros with soft office occupancy, alongside the more traditional apartment-to-condo play. The underwriting logic is the same — real estate collateral, a value-add buildout, and a retail-sale exit — but office-to-residential conversions carry their own added complexity around plumbing/riser relocation, egress and window requirements for habitable space, and floorplate depth, all of which needs an experienced sponsor and a lender comfortable underwriting an unconventional collateral transition.

Exit Strategy

The exit on a condo conversion isn't a single refinance event — it's a sequence of individual unit sales, each one closing with its own buyer and, typically, its own conventional mortgage. The hard money bridge's job is to carry the sponsor from acquisition of the whole building through legal conversion and renovation to the point where individual units are ready to list and close, releasing loan balance unit by unit along the way rather than waiting for one final payoff.

Restaurant & Food Service Real Estate Hard Money Loans in Texas

Restaurant real estate is one of the hardest property types to finance through a bank — not because the building is a bad asset, but because banks underwrite the business sitting inside it. Restaurant failure-rate statistics scare conventional lenders off even strong locations, and any hint of a startup concept, a first-time operator, or a change of use gets a fast decline. Hard money solves this because we lend against the real property — the building, the land, the improvements — not the P&L of the restaurant operating inside it.

What We're Actually Financing

A hard money loan on a restaurant property is a real estate loan, full stop. We're not underwriting the liquor license, the point-of-sale numbers, or the franchise agreement — those stay with the operator and any business-side lender they use. What we lend against is the acquisition price or appraised value of a freestanding restaurant building, a retail or strip-center bay being converted to food service, or an existing restaurant shell being repositioned for a new concept. That distinction is what lets us close in days instead of the 60-90 days a bank spends trying to underwrite a restaurant's future revenue.

The Buildout Problem Banks Won't Touch

Converting a vanilla retail box into a working kitchen means grease trap installation, Type I hood and exhaust systems, upgraded electrical service for cooking equipment, ADA-compliant restroom counts, and a walk-in cooler pad — all of it inspected and signed off before a Certificate of Occupancy is issued for food service use. Every one of those line items is a real cost against the real property, and every one of them has to clear a local health department and building inspection before doors open. Draw-based hard money financing is built for exactly this kind of sequenced, inspection-gated construction — funds release as each phase passes inspection, so the lender's exposure tracks completed, verified work rather than a projection of future restaurant sales.

Texas-Specific Timeline Risk

Texas restaurant projects carry two permitting tracks that rarely move on the same calendar: the local health department's food-service permit and, for anywhere alcohol will be served, TABC licensing. TABC applications routinely take weeks to months depending on the county and whether the location requires posted notice or has any protest window. A conventional construction loan with a hard maturity and no tolerance for permitting delay can put a deal in default before the doors even open. Hard money bridge terms are structured with that reality in mind — short initial terms with extension options tied to milestones, not a fixed close-of-escrow assumption that ignores how long TABC and local health inspections actually take.

Exit Strategy

Once a restaurant location has occupancy, a functioning kitchen, and — ideally — a few months of lease or operating history, it becomes a much more financeable asset to a conventional CRE lender or an SBA 504/7(a) lender if the borrower also owns the operating business. The hard money bridge exists specifically to get a property from "vacant shell with permitting risk" to "stabilized, occupied restaurant real estate" — the point at which long-term, lower-cost capital actually wants the deal.

Veterinary Clinic & Animal Hospital Hard Money Financing

Veterinary real estate has become one of the more active corners of commercial acquisition in Texas over the last several years, driven by both independent practitioners buying their own building and the national wave of private-equity veterinary roll-ups acquiring standalone hospitals and consolidating them under regional platforms. Both buyer types run into the same wall with conventional bank financing: closing timelines that don't match a competitive acquisition, and appraisal/underwriting processes that don't know what to do with a building full of surgical suites, imaging rooms, and boarding kennels.

Specialized Buildout, Real Collateral

An animal hospital is not a generic medical office. Surgical suites need dedicated ventilation and scrub-sink plumbing; digital radiography and ultrasound rooms often need shielding and electrical upgrades beyond standard office wiring; boarding and recovery kennel runs need washable flooring, drainage, and sound-dampening construction to satisfy both code and neighboring-tenant noise complaints; and many clinics need a fenced outdoor relief yard. All of that is real, appraisable improvement value — exactly the kind of asset-based collateral hard money is built to lend against, regardless of whether a bank's standard medical-office comp set knows how to price it.

The Zoning & CUP Timeline Problem

Because of the noise, odor, and outdoor-animal-area considerations, a meaningful number of Texas municipalities classify animal hospitals and boarding kennels as a conditional use rather than a by-right use in standard commercial and retail zoning districts — meaning a hearing, posted notice, and planning-commission approval before a Certificate of Occupancy can even be pursued. That process can run months longer than a typical retail or office build-out approval, and it's exactly the kind of open-ended timeline a bank construction loan with a fixed draw schedule and hard maturity date is not built to absorb. A hard money bridge, sized and structured around the real estate rather than a projected practice revenue ramp, can carry a deal through CUP approval and buildout without forcing a refinance race against an arbitrary calendar.

Acquisition-Plus-Real-Estate Scenarios

A common structure we see: a veterinarian (or a consolidator) is acquiring both the practice and the real estate it sits in at the same time, on a compressed seller timeline. Practice-acquisition lenders and banks move at very different speeds and rarely close simultaneously without friction. Financing the real estate piece separately through a hard money bridge lets the real property close on the seller's schedule while the practice-side financing (SBA, a specialty veterinary lender, or a PE platform's own capital) catches up behind it — then refinances the real estate into permanent debt once both pieces are stabilized under common ownership.

Exit Strategy

Stabilized veterinary real estate with an operating, licensed practice inside it is a well-understood asset class to SBA 504/7(a) lenders and to conventional medical-office CRE lenders — both routinely finance owner-occupied and investor-owned veterinary buildings once the CUP/zoning question is resolved and the clinic has occupancy. The hard money bridge's job is simply to get the property from raw acquisition or mid-buildout to that stabilized, licensed, occupied point.

The Full Playbook

Fix & Flip Timeline — From Contract to Profit Check

Here’s exactly what happens, week by week, on a typical Texas fix & flip — with what we handle and what you handle at each stage.

🏠 Example Deal: Dallas SFR, 4 bd / 2 ba

$195K

Purchase

$55K

Rehab Budget

$330K

Estimated ARV

$56K

Gross Profit

Day 1–3

Application

You send us the contract, comps, and your scope of work. We review the deal same day. If it underwrites, we issue a term sheet within 24 hours — no waiting on committee approval.

You: Send deal to usUs: Review + term sheet

Day 3–7

Underwriting

We order an appraisal or BPO, pull title, review your scope of work, and finalize loan terms. You sign the term sheet. We collect the appraisal fee (typically $450–$550).

You: Sign term sheetAppraisal fee: ~$500Us: Order appraisal + title

Day 9–14

Closing

Title company clears title. You wire your down payment (35% of purchase price). We fund the loan. You close on the property. On our $195K example: your down = $68,250; our loan = $126,750.

You wire: $68,250 downUs: Fund $126,750Property: Yours

Week 2–3

Demo & Rough

Contractors begin work. Demo, framing, rough plumbing/electric. First draw request submitted after you've spent 25–30% of rehab budget and work is inspected.

You: Pay contractors, request Draw 1Us: Inspect + wire draw in 5–7 days

Week 4–6

Mid-Rehab

Drywall, flooring, cabinets, fixtures. Draw 2 and Draw 3 submitted as work progresses. Each draw funded within 5–7 business days of inspection. Scope changes go through a change order — document everything.

Draw 2 + Draw 3Document scope changes

Week 7–9

Final Rehab

Paint, trim, appliances, landscaping, punch-out. Final draw submitted when rehab is complete. Property is ready for photos and listing.

Draw 4 (final)Schedule listing photos

Week 9–11

List & Market

MLS listing, open houses, offers. You're still paying interest on the loan during this period (~$1,100/mo on our example at 10.5% I/O). Every week on market = carrying cost. Price it to move.

Carrying cost: ~$1,100/moPrice to sell in 2–3 weeks

Week 12–14

Sale & Payoff

Contract accepted. Buyer's financing closes. At settlement: sales proceeds pay off our loan ($126,750 + ~$16K in interest/carry for 14 weeks). Your profit check arrives — in our example, approximately $56,000.

Profit: ~$56,000Loan payoff: automatic at closeDeal done

Start Your Fix & Flip — Get a Term Sheet in 24 Hours →

2026 Market Data

Texas Fix & Flip Markets — Where the Money Is Being Made

City-by-city breakdown of average purchase prices, rehab costs, ARVs, and gross margins for active flips in Texas right now.

Dallas (Oak Cliff / South)

🔥 Very Hot

Avg Purchase

$168K

Avg Rehab

$48K

Avg ARV

$298K

Gross Margin

$82K

Gentrification wave still active in Oak Cliff, South Dallas. Strong buyer demand from first-time buyers. Avg DOM after rehab: 18 days.

Fort Worth (East Side)

🔥 Hot

Avg Purchase

$145K

Avg Rehab

$52K

Avg ARV

$265K

Gross Margin

$68K

East Fort Worth seeing 8–12% price appreciation on renovated product. Lower competition than Dallas proper. Strong contractor availability.

Garland / Mesquite

✨ Good Returns

Avg Purchase

$185K

Avg Rehab

$40K

Avg ARV

$290K

Gross Margin

$65K

Suburban DFW attracting first-time buyers priced out of Dallas. Lighter rehabs (cosmetic-only) possible on 1990s stock. Reliable 60-day exits.

Houston (Heights / Montrose adj.)

🔥 Very Hot

Avg Purchase

$220K

Avg Rehab

$65K

Avg ARV

$395K

Gross Margin

$110K

Highest gross margins in TX on quality product. Premium buyers paying up for renovated 1920s–1940s bungalows. Competition intense — speed to contract is everything.

Pasadena / Deer Park

✨ Good Returns

Avg Purchase

$148K

Avg Rehab

$38K

Avg ARV

$248K

Gross Margin

$62K

Lower entry price point with steady buyer demand from petrochemical/refinery workers. Consistent velocity — 25–35 day average DOM after rehab.

Katy / Sugar Land

⚡ Warming

Avg Purchase

$240K

Avg Rehab

$35K

Avg ARV

$330K

Gross Margin

$55K

Family-market suburbs — strong school districts drive buyer premium. Heavier competition from retail buyers. Best for cosmetic flips with fast turnover.

Austin (East / SE)

✨ Strong

Avg Purchase

$340K

Avg Rehab

$70K

Avg ARV

$520K

Gross Margin

$110K

High purchase prices but premium buyers pay top dollar for quality renovation. Tech workers, remote workers driving demand. Requires more capital but margin potential is exceptional.

Round Rock / Georgetown

🔥 Very Active

Avg Purchase

$255K

Avg Rehab

$45K

Avg ARV

$380K

Gross Margin

$80K

Austin suburb boom still active. Lower purchase price than Austin proper with strong appreciation. Dell, Tesla, Samsung employee base creating sustained buyer demand.

Waco / Temple / Killeen

⚡ Emerging

Avg Purchase

$110K

Avg Rehab

$35K

Avg ARV

$195K

Gross Margin

$50K

Lower entry cost means lower capital requirement. Magnolia/Fixer Upper effect still moving Waco. Military demand in Killeen is constant and recession-resistant.

San Antonio (North / Medical)

✨ Good

Avg Purchase

$175K

Avg Rehab

$45K

Avg ARV

$285K

Gross Margin

$65K

Military (Ft. Sam Houston, Lackland, Randolph) creates stable buyer demand. Medical Center expansion driving north SA appreciation. Steady market, less volatile than Austin.

El Paso

⚡ Steady

Avg Purchase

$120K

Avg Rehab

$30K

Avg ARV

$200K

Gross Margin

$50K

Fort Bliss military presence = built-in buyer pool. Low purchase prices mean capital-efficient flips. Less competition from institutional flippers who ignore small markets.

Lubbock / Amarillo

⚡ Reliable

Avg Purchase

$98K

Avg Rehab

$28K

Avg ARV

$178K

Gross Margin

$52K

University towns (Texas Tech, WT A&M) create rental and owner demand. Lowest capital entry point in Texas. Perfect for first-time flippers building experience and track record.

Data based on closed hard money transactions and MLS comps — 2025–2026. Individual deals vary. Call us to discuss your specific market and property.

Fund My Texas Flip — Term Sheet in 24 Hours →

Full Fee Transparency

Every Cost on a Hard Money Loan — Nothing Hidden

We believe in full transparency before you apply. Here’s every fee you’ll encounter on a Texas hard money loan — what it is, what it covers, and typical ranges.

💰 Closing Costs (one-time)

Origination Fee (Points)Lender fee for creating the loan	2–3 pts% of loan amount at close
Appraisal / BPOProperty valuation by licensed appraiser	$450–$650
Title Insurance + EscrowTitle company handles closing + insures title	$1,200–$2,000
Recording FeesCounty deed and lien recording	$150–$300
Attorney / Doc PrepLoan document preparation	$300–$600
Draw Inspection Fee (fix & flip)Per inspection — 4 draws = 4 fees	$150–$250 each
Prepayment Penalty variesOnly if you pay off early within penalty period	0–5%
Application Fee us: $0We don’t charge to review your deal	$0
Typical Total Closing Costs	3.5–5.5%

📅 Carrying Costs (monthly)

Interest (I/O payment)Interest only, no principal during term	10–12% / yr
Property InsuranceRequired — vacant property policy	$80–$200/mo
Property Tax (accruing)TX property taxes — paid at exit or annually	Varies by county
Utilities (if holding vacant)Electric + water during rehab	$150–$400/mo

🏠 Real Example: Dallas Fix & Flip
$195K Purchase / $55K Rehab / $330K ARV

Loan amount (65% of $195K)$126,750

Down payment (35%)$68,250

Origination (2.5 pts)$3,169

Appraisal$550

Title + escrow$1,400

Recording + docs$450

4 draw inspections × $175$700

Interest: 10.5% × 4 months I/O$4,436

Rehab budget$55,000

Sell-side closing (6% of $330K)$19,800

Total all-in cost$153,555

Sale price (ARV)$330,000

Gross profit$176,445 all-in → $57K profit

The honest math: high rate, short duration, strong return

A 10.5% annual rate on a 4-month hold is 3.5% of loan amount in interest. On a $126K loan that’s $4,400 in interest — roughly the cost of a weekend getaway — to control a $330K asset and generate $57,000 gross profit. The rate sounds high because people compare it to 30-year mortgages. Compare it to your return instead. No other financing instrument lets a contractor or investor control a $300K asset with $68K down and make $57K in 4 months.

Get a Full Cost Breakdown for Your Deal — Free →

Common Hesitations

10 Reasons Investors Don’t Call a Hard Money Lender — All Wrong

Every one of these objections costs investors real money every year. Click each one to see the truth.

Compare the rate to the return, not to a 30-year mortgage. A 4-month hold at 10.5% costs you 3.5% of your loan amount in interest. On a $130K loan, that’s $4,550 in interest to control a $200K asset and make $60K profit. That’s an 8% “fee” on your gross profit. Call that predatory if you want — but you just made $55,450 net.

The math

$60K gross profit − $4,550 interest = $55,450 net. 10.5% rate, massive return.

The bank takes 45–90 days. The distressed property you want is gone in 10. The auction you want requires 14-day funding. The bank doesn’t finance distressed properties at all. “Cheaper” only matters if you actually get the loan. A 100% of the cheaper loan that doesn’t get you the deal is worth $0.

Reality check

Banks decline 60–70% of investment property loans that hard money lenders fund. They also take 3–6× longer. On competitive deals, bank timing = losing the deal.

Foreclosure in Texas takes a minimum of 60–90 days and costs a lender $15,000–$40,000+ in legal fees, carrying costs, and resale friction. We want our principal back and our interest paid — not the headache of owning your distressed asset. Every hard money lender’s first call when a deal goes sideways is “what do you need to get this resolved?” Extensions, modifications, partial releases — we work it out.

We fund first-time investors regularly. We’re not looking for a resume — we’re looking at your deal, your down payment, and your plan. First-time investors with a solid deal (good ARV, 35% down, clear scope of work) close every week. What we do care about: you’re working with a licensed contractor, not doing major structural work solo with no experience.

Our data

31% of our fix & flip loans in the past 12 months went to first-time flippers. Experience helps on pricing. It’s not a gate.

Our minimum credit score is 600. Below 640 affects pricing slightly (25–50 bps higher rate). It does not disqualify you. We are asset-first lenders. A borrower with a 630 score and a deal that clearly works at 60% LTV is a better client than a 720-score borrower with a marginal deal.

The down payment doesn’t have to come from your checking account. It can come from: equity in another property (cash-out bridge or HELOC), a business line of credit, a partner’s equity contribution, a seller carryback (on a portion of the purchase), or a down payment from a private investor. The 35% is a security position requirement — it doesn’t have to be your personal savings.

Our minimum loan is $100,000. A $155K purchase qualifies at 65% LTV. Many of our most efficient deals are $100K–$250K fix-and-flips where the investor nets $40K–$65K per flip. Small deal doesn’t mean bad deal — it often means faster rehab, faster exit and less competition. Below $100K we can still look at it as part of a portfolio or a cross-collateralized request.

We fund all 254 Texas counties. Lufkin. Midland. Laredo. Paris. Corsicana. Wichita Falls. Most hard money lenders shy away from rural markets because they don’t understand them. We do rural Texas all the time — the comps process is different, not harder. If the deal works in your market, we fund it.

Extensions exist. If you’re 90 days from payoff and the rehab hit a delay, call us. We’ll discuss a 1–3 month extension at a modest fee (typically 1–2 pts or a rate bump). Extensions are routine in the hard money world. They’re not admissions of failure — they’re a tool for managing real-world construction timelines that rarely go perfectly.

Our policy

We’ve never foreclosed on a borrower who stayed in contact and had a viable plan. Communication beats everything.

Mortgage brokers are great for conventional owner-occupied financing. For investment property bridge loans, a broker adds 1–3 points of fee on top of the lender’s rate — and they have no control over speed, underwriting, or outcome. You’re paying more and giving up control. Going direct to us means no broker markup, direct communication with the decision-maker, and faster execution.

None of These Apply to You? Get a Term Sheet →

Investor Education

Hard Money Lending Glossary — Every Term You Need to Know

From ARV to LTV to step-down prepayment penalties — every term explained in plain language for Texas real estate investors.

🔍

ARV

After-Repair Value — the estimated market value of a property after all planned renovations are completed. Used to calculate maximum loan amounts on fix-and-flip deals.

As-Is Value

The current market value of a property in its present condition, before any repairs or improvements. Hard money loans are typically based on this figure.

Amortization

The process of paying off a loan through regular payments over time. Many hard money loans are interest-only (no amortization during the term).

BPO

Broker Price Opinion — a property valuation performed by a licensed real estate agent or broker. Less expensive than a full appraisal; often used for smaller hard money loans.

Bridge Loan

A short-term loan that "bridges" the gap between an immediate financing need and a longer-term solution. Typically 6–24 months with an interest-only structure.

Bridge-to-DSCR

A common strategy: use a bridge loan to acquire/stabilize a rental property, then refinance into a 30-year DSCR loan once it has rental history.

Cap Rate

Capitalization Rate — Net Operating Income divided by property value, expressed as a percentage. Used to evaluate investment property returns independently of financing.

Cash-on-Cash Return

Annual pre-tax cash flow divided by total cash invested. Measures the actual cash yield on your equity invested, excluding appreciation.

Closing Costs

All fees paid at loan closing: origination points, appraisal, title, recording fees, etc. Typically 3–5% of loan amount on hard money loans.

Construction Draw

A disbursement of rehab funds from the lender to the borrower as work is completed and inspected. Usually 4–5 draws on a standard fix-and-flip loan.

DSCR

Debt Service Coverage Ratio — monthly rent divided by monthly principal + interest payment. A DSCR of 1.25 means rent is 125% of the payment. Minimum for most lenders: 1.0.

Draw Schedule

A predetermined plan for how and when construction funds are disbursed during a rehab project. Each draw requires an inspection to confirm completed work.

DTI

Debt-to-Income Ratio — total monthly debt payments divided by gross monthly income. Banks use DTI for approval; hard money lenders typically do not.

Deed of Trust

The security instrument used in Texas (instead of a mortgage) that gives the lender a security interest in the property. Texas is a deed-of-trust state.

Equity

The difference between a property's market value and the outstanding loan balance. Your equity is the cushion that protects both borrower and lender.

Exit Strategy

The borrower's plan to repay the bridge loan — typically a sale of the property, refinance to a conventional loan, DSCR loan, or SBA loan.

Fix & Flip

A real estate investment strategy where an investor buys a distressed property, renovates it, and sells it for a profit, typically within 6–12 months.

Full Recourse

A loan structure where the borrower is personally liable for repayment if the property doesn't cover the debt. Standard on hard money bridge loans.

Guarantor

A person who personally guarantees repayment of a loan. In hard money lending, the managing member of the LLC typically serves as guarantor.

Gross Rent

Total rent income before any expenses. Distinguished from Net Operating Income (NOI), which subtracts vacancy and operating expenses.

Hard Money Loan

An asset-based loan secured by real property, underwritten primarily on the value of the collateral rather than the borrower's personal income or creditworthiness.

HELOC

Home Equity Line of Credit — a revolving credit line secured by home equity. Often used by investors as a down payment source for investment property purchases.

Holding Costs

Ongoing expenses during a fix-and-flip: loan interest, property taxes, insurance, utilities. Every additional month on market increases holding costs.

Interest-Only (I/O)

A loan payment structure where the borrower pays only the interest each month — no principal reduction. Common on bridge loans to minimize monthly payments.

In-Place Income

The actual rent currently being collected on a property, as opposed to market rent projections. Lenders underwrite multifamily deals on in-place income.

LTV

Loan-to-Value — loan amount divided by property value, expressed as a percentage. Hard money lenders typically lend at 60–65% LTV on investment properties.

Lis Pendens

Latin for "suit pending" — a public notice that a property is subject to legal action. A lis pendens on title can prevent a sale or refinance until resolved.

NOI

Net Operating Income — gross rental income minus operating expenses (vacancy, management, repairs, taxes, insurance), before debt service. Key metric for commercial valuation.

No-Ratio DSCR

A DSCR loan program that does not require the property to demonstrate a minimum DSCR ratio. Available at higher rates; useful for sub-1.0 DSCR properties.

Origination Fee

The lender's fee for creating the loan, expressed as "points" (1 point = 1% of loan amount). Hard money loans typically carry 2–3 points at origination.

Owner-Occupied

A property where the owner lives as their primary residence. Hard money lenders do not fund owner-occupied primary residences; investment property only.

Points

Percentage-based fees charged at loan origination. 2 points on a $300K loan = $6,000. Paid at closing and reduce the lender's effective cost of capital.

Prepayment Penalty

A fee charged if the loan is paid off early. Common structure: 5-4-3-2-1 (percentage decreasing each year). Protects lender's expected interest income.

Personal Guarantee

A legal commitment by an individual to repay a business debt if the business entity cannot. Required by most hard money lenders on all loan programs.

Rehab Budget

A detailed cost estimate for all planned renovations on a fix-and-flip or value-add property. Lenders review the scope of work as part of underwriting.

ROIC

Return on Invested Capital — net profit divided by total cash invested. The most meaningful metric for evaluating fix-and-flip deals.

Rent Roll

A document listing all tenants, their units, lease terms, and monthly rents for a multifamily or commercial property. Required for income property bridge loans.

SBA 504

A Small Business Administration loan program for owner-occupied commercial real estate. 10% down, below-market fixed rates. Common exit strategy from bridge loans.

Scope of Work (SOW)

A detailed list of all planned renovations with cost estimates per item. Required by hard money lenders on any rehab loan to validate the budget.

Step-Down Prepayment

A prepayment penalty that decreases each year. Example: 5% Year 1, 4% Year 2, 3% Year 3. After the step-down period, the loan can be paid off penalty-free.

Title Insurance

Insurance protecting the lender (and buyer) against title defects, liens, or ownership disputes. Required on all hard money loans. Issued at closing by a title company.

Term Sheet

A non-binding document outlining proposed loan terms: amount, rate, LTV, term, fees. Issued after initial deal review; precedes formal underwriting and appraisal.

Value-Add

A real estate strategy where an investor improves a property to increase its income or value. Requires bridge financing because conventional lenders won't fund distressed assets.

Vacancy Rate

The percentage of rentable units that are unoccupied. National average ~5–7%. Sub-5% vacancy indicates strong rental demand in a market.

Apply for a Hard Money Loan — Term Sheet in 24 Hours →

Loans Banks Won’t Touch

Raw Land — Ranch — Ground-Up ConstructionTexas Only

The national hard money lenders only do single-family residential. We do the deals everyone else declines — raw dirt, working ranches, and ground-up builds — down to a 400 FICO score.

Raw Land Loan Terms

LTV on raw land50–60%

Minimum acreageNo minimum

Maximum acreageNo cap — Texas-wide

Zoning required?No — unzoned OK

Utilities required?No — raw dirt OK

Entitlement required?No — pre-permit OK

Loan term6–24 months

Min FICO~400

Close time10–21 days

Why Banks Decline Raw Land

No income from landBanks decline

No improvements = no collateralBanks decline

Speculative valueBanks decline

No permits yetBanks decline

Our underwritingExit plan + as-is value

We fund based onLand value + your plan

Who Uses Raw Land Hard Money Loans

🏠

Spec Home Builders

Buy the lot now, pull permits, then finance construction separately or with the same lender.

🏗

Subdivision Developers

Acquire a tract, entitle it, sell lots to builders or develop into a subdivision.

📈

Land Flippers

Buy raw acreage below market, subdivide or entitle, flip to a developer at a premium.

🏭

Commercial Pad Buyers

Acquire a commercial outparcel or strip center pad for a retail, medical, or QSR build.

⛽

1031 Exchange Parking

Park 1031 exchange proceeds in land while identifying a replacement investment property.

📍

Land Banking

Lock in land in a growth corridor before prices move. Bridge loan buys time to plan.

No. We lend on raw, unentitled, unpermitted land regularly. We underwrite on the as-is appraised value of the land and your exit strategy — whether that’s a sale, development, or refinance. A credible plan helps, but hard permits are not required at loan origination.

Typically 50–60% of the as-is appraised value. Raw land is less liquid than improved property, so lenders take a conservative LTV to protect against a forced sale. On land with an active listing price well below appraised value, we may fund based on purchase price rather than appraised value — ask us about the specific deal.

No minimum, no maximum. We’ve funded a single lot in a DFW suburb and large rural tracts in West Texas. The determinant is whether the land has a clear appraised value and a realistic exit. Very remote, undocumented land with no comparable sales is harder — but not impossible. Submit it and we’ll tell you honestly what we can do.

Ranch Financing Terms

Property typesWorking ranch, hunting, recreational

LTV50–60% appraised value

Improvements required?No — raw ag land OK

Ag exemption OK?Yes

Water rights / mineral rightsReviewed case-by-case

Loan term6–24 months

Personal guaranteeRequired — full recourse

Min FICO~400

Ranch Loan Use Cases

Buy before the estate sale closes✓ Perfect bridge use

Cash out equity in owned ranch✓ 55–60% LTV cash-out

Bridge to USDA/Farm Credit refi✓ Common exit strategy

Purchase at auction✓ Close in 10–14 days

Buy out partner or heir✓ Probate-friendly

Why Ranch Buyers Need Hard Money

Farm Credit, USDA, and community banks do ranch financing well — but they take 60–120 days to close and require clean credit, tax returns, and ag income documentation. When a family ranch hits the market or goes to auction, the buyer with bridge financing that closes in 2 weeks gets the deal. You refinance into long-term ranch financing after closing. We’re the bridge that gets you across.

Yes. The loan is secured by the land value. Whether there’s a barn, a house, or nothing but pasture doesn’t change our ability to lend — it affects the appraised value, which determines the loan amount. Raw ag acreage with comparable sales in the area is fundable.

We don’t require it, but it helps. Hard money underwriting is asset-first — the land value and your exit plan are primary. Agricultural income can strengthen a deal at the margins, but we won’t decline a fundable land deal because you don’t have cattle revenue to show. No tax returns required.

Most ranch borrowers exit into Farm Credit Services, USDA Farm Loan Programs, or a community bank ag loan within 6–12 months. Those lenders want to see you own the property before they underwrite. We get you in, they get you long-term. Some buyers also exit via a sale to another rancher or hunting group at a premium to what they paid.

Ground-Up Construction Terms

Loan structureLot + construction (one loan)

LTC (loan to cost)Up to 70% of total cost

LTV on completed value (ARV)Up to 65% ARV

Construction funds releaseDraw schedule (4–6 draws)

Property typesSFR spec, duplex, small multifamily, commercial shell

Permits required at funding?Yes — or permit-ready

Builder experience required?No — first build OK

Loan term12–18 months

Min FICO~400

How the Draw Schedule Works

Draw 1 — Foundation20% of construction budget

Draw 2 — Framing / Rough-in25% of construction budget

Draw 3 — Mechanical / Drywall20% of construction budget

Draw 4 — Finishes20% of construction budget

Draw 5 — CO / Final15% of construction budget

Inspection required per draw?Yes — 3–5 day turnaround

Ground-Up Projects We Fund

🏠

Spec Home Build

Build a house to sell. Loan covers lot + construction. Exit at certificate of occupancy.

🏛

Duplex / Fourplex

Ground-up small multifamily. Refinance into DSCR loan at stabilization — strong exit.

🏭

Commercial Shell

Retail strip, medical office, or flex industrial shell. Tenant build-out funded separately.

🏙

ADU / Guest House

Accessory dwelling unit on an existing lot. Increasingly permitted in Texas cities.

📍

Subdivision Lot Build

Builder acquires finished lots and constructs spec homes. Repeat draw borrowers welcome.

⛽

Owner-Builder

You’re acting as your own GC. We require a licensed contractor for structural work and inspections.

No — first-time builders are welcome. We do require a licensed general contractor with verifiable residential or commercial construction experience. You can act as the developer (buyer and project manager) without holding a contractor’s license yourself, as long as your GC is licensed and bonded. A detailed budget and schedule from your contractor helps underwriting move faster.

Yes — this is one of the most common uses. We lend based on the completed ARV of the home. If you’re building a $450K home at a $300K cost basis, we can lend up to 65% of ARV ($292K) — covering most of the lot and all of construction. Exit is a sale after receiving your certificate of occupancy. The profit comes from the spread between build cost and sale price.

We need: (1) the lot purchase contract or deed if you already own it, (2) a detailed construction budget (line-item scope of work with costs), (3) your contractor’s license and proof of insurance, (4) plans or renderings if available — not required but helpful, (5) entity docs if borrowing in an LLC. No tax returns, no W-2, no bank statements unless specifically requested. Most packages can be assembled in under an hour.

Submit a Land or Construction Deal — Term Sheet in 24 Hours →

Reviews

What Our Borrowers Say

Real Google reviews of our lending team, word for word. We also operate Commercial Loans of Texas, so some reviews name it — same team, same underwriting, same person answering the phone.

★★★★★

“Let me just start by saying that the only reason I give him five stars is because there is no higher. Daniel Peterson is one of the most honest and transparent person I have ever dealt with. Getting me a refinance was not going be easy but right from the start he gave it his all. Just as we would hit bumps he would not give up. He would look for other ways and would always stay motivated to make it happen. Just as I thought that it wasn’t going to get done. He would pull out the rabbit from the hat, as the old saying goes, all the way to the end. If you are ever in need of a refinance or to purchase another home or anything in this field trust me you will not be disappointed with him. I truly say if he can’t do it it’s probably because it cannot be done but if he does he will find a way.”

JA JESCO AUTO SALES INC. Google Review

★★★★★

“I would highly recommend Commercial Loans of Texas for commercial lending. My experience with Dan was top notch. Starting from consultation and application to guidance navigating the daunting underwriting process, Dan's experience and insight was invaluable to reach a successful closing. Will definitely engage again in the future.”

CD Christopher Day Google Review

★★★★★

“I would highly recommend Dan Peterson with Commercial Loans of Texas. I am a physician in private practice, and I approached Dan about helping me to navigate the commercial loan process for a new medical office. He was proactive and very helpful during the process. His experience and knowledge made a big difference. He is amazing.”

LD Lesly Dessieux Google Review

★★★★★

“Dan Peterson is the best commercial lender hands down! He truly knows his stuff and makes sure that you know all of the pertinent info upfront. I've never seen a commercial loan close this fast. Amazing!! I look forward to working with him in the future for my personal deals and on deals for clients that I will be referring!”

AC Assistant Cloud Google Review

★★★★★

“The Best Commercial Loan Company in Texas. "Danial Peterson !" We were running out of options, doors after door were slammed in our faces! Daniel came through for us when NO ONE ELSE WOULD! We will be eternally grateful for all Daniel and his company has done for us! Give Daniel a call and he will make your dream come True!”

AY annette Yates Google Review

★★★★★

“This company offers very delicate customer services, Dan Peterson is very nice and professional that he was trying to help me to get finance the property but unfortunately the property is in rural area that was not qualify the loan. Dan referred me to another company to finance the property. Thank Dan!”

LT Ling Tan Google Review

★★★★★

“Dan Peterson secured a commercial loan for me with ease and a no b.s. approach. I had a few obstacles to overcome and a tight closing window and Dan made it happen for me. I can't say enough about Dan and his team at Commercial Loans of Texas. If in need of a commercial loan...Dan's your man.”

DL Dyana Lee Google Review

★★★★★

“Our client who was purchasing an apartment building in Montrose- was introduced to Commercial Loans of Texas. The commercial loan officer was hands-on, kept us updated in a timely fashion, was able to provide the best rate and terms available in this market.” Linda Charmaigne”

PU Pattraporn U. Google Review

★★★★★

“This Is The Best Commercial Loan Company In The State Of Texas. Daniel Peterson Is Awesome 🤩 He Answer’s Every Call ☎️ And Goes Above ☝🏾 And Beyond To Maker Sure Business 👨🏽‍💼 Is Handled. I Highly Recommend This Company To Anyone Respectfully!!!!”

KS Kieran Smith Google Review

★★★★★

“It's been a pleasure working with a highly professional, knowledgeable and responsive loan master, Mr. Dan Peterson. He is the best. We were able to successfully close very tough deals back to back. For any loan issue, go to Dan! He is the man.”

SW Steven W Google Review

★★★★★

“Worked with Dan from Commercial Loans of Texas. We had been working for two months to refinance our loan on a property owned by my LLC. I got tired of waiting for other slow institutions and decided to give Dan a call. He had me closed…”

PB Peter Bonanni Google Review

★★★★★

“Daniel Peterson did a fantastic job of closing my construction loan. He made me aware of all financing options and went out of his way to investigate them. We closed on time at an interest rate that was actually slightly lower than we…”

JC John Coco Google Review

★★★★★

“I have nothing but good to say of Daniel Peterson and Commercial Loans of Texas. My loan did not go through but not due to any fault of Daniel or his company. Even after several weeks I called and asked about my appraisal refund and…”

JC Jason Curtis Google Review

★★★★★

“Daniel was great to work with throughout the entire process. He answered questions quickly and the loan funded within three weeks. I would highly recommend him and look forward to working with him in the future on some new projects.”

TC Tracy Cowan Google Review

★★★★★

“If you need to close a complex transaction quickly, Daniel is your guy! He won't sleep until he's able to put a solution in place to help you close your deal. Thanks for all the hard work, Daniel!”

SS Shane Spillers Google Review

★★★★★

“Dan and the team were great! The process was smooth and friendly, Texas style. I highly recommend Commercial Loans of Texas. We'll defiantly be doing business with them in the years to come.”

JT Josh Taylor Google Review

★★★★★

“Dan is Truly AMAZING. Promised he would close on a million dollar property on time and he delivered. A genius at what he does.Thanks Dan, looking forward to the next phase.”

KS Karen Siriwa Google Review

★★★★★

“Dan found terms I didn't think were out there for commercial! Very satisfied and we'll definitely be using Commercial Loans of Texas again on our next conventional deal!”

KO Keno Owens Google Review

★★★★★

“Daniel Peterson got me an amazing mortgage that no one else could do. I don’t see why I would work with anyone else. Amazing service. Thank you.”

BD billy desai Google Review

★★★★★

“Dan Peterson very forthright and transparent. Gave me great guidance and really appreciate him going out of his way for my commercial loan.”

BB bryan bahr Google Review

★★★★★

“As a former Texas Real Estate Commissioner I can tell you this group knows what it takes to get business done with prompt professionalism.”

WM Weston Martinez Google Review

★★★★★

“I strongly recommend Commercial Loans of Texas! Daniel was instrumental in the acquisition of a hard-money bridge loan in 2016.”

DD Derek Diaz Google Review

★★★★★

“We Are Thankful for Dan Peterson and the team of underwriting who have given us the monies to consolidate our debt. Thank you.”

JL Jesus Life Google Review

★★★★★

“Got a challenging loan approved and closed. Best customer service. They get'm DONE in a timely manner. Thank you!⭐️⭐️⭐️⭐️⭐️”

NJ nicole johnson Google Review

★★★★★

“Dan Peterson was great to work with, closing my commercial loan refinance just as I needed. Thanks Dan!”

MM Mike McAda Google Review

★★★★★

“Very helpful in understanding would recommend anybody that doesn't have the best way home”

KC Kirk Carlson Google Review

★★★★★

“Every step from LOI through closing was guided with great service. "Just Right"”

MS Mark Spence Google Review

★★★★★

“Thank you Dan Peterson. You sent me in the right direction. I appreciate…”

KY Kym Google Review

★★★★★

“great experience will do further business with Dan.”

LR lawrence roberts Google Review

★★★★★

“Great working with this company”

DS David S Google Review

★★★★★

“Very frenly company”

GR Griffin Roberts Google Review

Call 800-547-9081

Factor	Hard Money Hard Money of Texas	Traditional Bank	Private Money Individuals/Funds
Time to Close	5–10 days	45–90 days	7–21 days
Credit Score Required	580+ (flexible)	700+ (strict)	Varies by lender
Tax Returns Required	No	2 years required	Sometimes
Based On	Property value	Borrower financials	Relationship
Rate	Quoted on your deal	7%–9%	8%–15%
Loan Term	12–24 months	15–30 years	6–24 months
Max LTV	Up to 70%	Up to 80%	50%–65%
Reliability / Certainty	Very high	Low (often falls through)	Medium
Self-Employed OK?	Yes — no docs needed	Difficult	Sometimes
Distressed Property OK?	Yes	No	Sometimes

Loan Program	Rate	Max LTV	Term	Points	Action
Fix & Flip (SFR)	Quoted on your deal	65%	6–12 mo	2–3 pts	Get Quote
Multi-Family (2–20 units)	Quoted on your deal	65%	12–24 mo	2–3 pts	Get Quote
Commercial / Mixed-Use	Quoted on your deal	60%	12–24 mo	2–4 pts	Get Quote
Raw Land / Vacant Lots	Quoted on your deal	65%	12–18 mo	2–4 pts	Get Quote
Industrial / Warehouse	Quoted on your deal	60%	12–24 mo	2–3 pts	Get Quote
Bridge / Balloon Payoff	Quoted on your deal	65%	3–12 mo	2–3 pts	Get Quote

Start here — get your terms in writing

Do the whole thing online, or talk to a person. Whichever you prefer.

Hard Money Loans Texas | No Credit Check | Up to 65% LTV | Hard Money of Texas

Hard Money Loans in Texas — We Only Look at the Property

What We Lend On

Our Terms Are Simple

Who We Work With

Call 800-547-9081

1031 Exchange Bridge Loans:Don't Let a Financing Delay Blow Your 45/180-Day Clock

When This Makes Sense

Good Fit for a 1031 Bridge Loan

Watch Out For

Racing Your 1031 Exchange Deadline?

1099 & No-W2 Investor Financing:Hard Money That Doesn't Care How You Get Paid

Who This Fits

Common Borrower Profiles

What We Look At Instead

From Bridge to Long-Term: A Full Path for Self-Employed Investors

Self-Employed or 1099 and Ready to Invest?

Office-to-Residential & Commercial Adaptive Reuse —Financing Buildings Banks Won't Touch Mid-Conversion

What Makes a Conversion Different to Finance

Office-to-Apartment

Retail-to-Mixed-Use

Hotel-to-Apartment

Industrial-to-Loft

Get in Front of These Before Funding

Common Underwriting Sticking Points

How Draws Work on a Conversion

Have a Commercial Building You're Looking to Convert?

Accessory Dwelling Unit (ADU) Hard Money Financing

Common Uses

Common Scenarios

What Still Matters

Building Income Without Buying Another Property

Adding an ADU to a Texas Rental Property?

Converting Texas Ag Land? Budget for theRollback Tax Before You Borrow

Where This Comes Up in a Deal

Ag-to-Residential Development

Ag-to-Commercial Conversion

Partial Parcel Conversion

Wildlife Exemption Land

Handled Well

Costly Surprises

Why This Matters for Hard Money Underwriting

Converting Ag or Wildlife-Valued Land?

Skip the Appraisal Wait:AVM/BPO-Based Fast-Track Hard Money

When This Path Makes Sense

Good Fit for Waiver

Still Needs a Full Appraisal

We Tell You Which Path Fits Before You Commit

Need to Close Faster Than a Full Appraisal Allows?

After-Repair Value (ARV): The Number That Makes or Breaks Every Texas Flip

How to Pull Accurate Comps: The 6 Rules Texas Investors Use

Same Subdivision or 0.5-Mile Radius

Sold in Last 90 Days

Similar Square Footage (±20%)

Same Bedroom/Bath Count (or Adjust)

Similar Condition — Fully Updated

Lot Size and Configuration

Common ARV Adjustments — What Each Feature Is Worth in Texas

ARV Deal Analyzer

The 4 ARV Mistakes That Kill Texas Flips

Using Active Listings as Comps

Ignoring Micro-Market Differences

Projecting Your Renovation Standard onto Buyers

Not Accounting for Seasonality

Have a Deal? We'll Run the ARV with You.

Buying at Texas Foreclosure Auctions:The Complete Investor's Guide

How Texas Non-Judicial Foreclosure Works — Step by Step

Borrower Falls Behind on Payments

Notice of Foreclosure Sale Filed

Courthouse Steps Auction

Texas Has No Redemption Period

Evicting Occupants (If Needed)

Auction Risks Every Investor Must Understand

No Interior Inspection

Second Liens Survive

Overbidding in Competitive Markets

Same-Day Funding Requirement

How We Fund Auction Purchases — Same Day

1031 Exchange Bridge Loans:
Don't Let a Financing Delay Blow Your 45/180-Day Clock

1099 & No-W2 Investor Financing:
Hard Money That Doesn't Care How You Get Paid

Office-to-Residential & Commercial Adaptive Reuse —
Financing Buildings Banks Won't Touch Mid-Conversion

Converting Texas Ag Land? Budget for the
Rollback Tax Before You Borrow

Skip the Appraisal Wait:
AVM/BPO-Based Fast-Track Hard Money

Buying at Texas Foreclosure Auctions:
The Complete Investor's Guide

Blanket Hard Money Loans:
One Loan, Multiple Properties, Faster Scaling

6 Types of Investors Who Use
Hard Money — and Why

BRRRR Method Hard Money:
Buy, Rehab, Rent, Refinance, Repeat — Funded Right

Builder Lines of Credit:
One Facility Instead of Refiling for Every Spec Home

Why Hard Money Loans Must Be "Business Purpose"
(And What That Actually Means for You)

Seller Carryback + Hard Money Combo:
Stretch Your Down Payment Without a Full Cash Purchase