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How It Works | Hard Money of Texas - Hard Money of Texas

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  • ✓ Asset-based — no credit check
  • ✓ Up to 65% LTV
  • ✓ Close in days, not months
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Hard Money of Texas

How It Works | Hard Money of Texas

How Our Hard Money Loans Work

Basically, the process is straightforward. Here is exactly what happens from your first call to closing:

Step 1 — Phone Call Prequalification

Call us at 800-547-9081. Tell us about the property — address, type, and value. Basically we will let you know right away if we can lend on it. No credit check, no income questions. Just the property.

Step 2 — Application

We send you a short application. Basic borrower information and property details. No tax returns, no pay stubs, no financial statements required for hard money.

Step 3 — Approval

We review the application and give you a loan approval based on the property value. Basically we lend up to 65% of the property value — that is the only number that matters.

Step 4 — BPO or Appraisal

A Broker Price Opinion (BPO) or full appraisal is ordered on the property to confirm the value. This is a borrower cost.

Step 5 — Documents Needed

Basically our team will collect the following:

  • Government-issued ID
  • LLC or Corp docs (if borrowing in an entity)
  • Survey (if available)
  • Insurance company contact info
  • BPO / Appraisal (from Step 4)

Step 6 — Underwriting Needs List

Our underwriter reviews the file and sends out a Needs List — basically a checklist of anything still outstanding. We work through it with you to get the file complete and ready to close.

Step 7 — Title Closes — Notary Comes to You

Once everything is in, the title company closes the loan. Basically they send a notary directly to your home or office so you do not have to go anywhere. You sign and the funds are wired.

Permanent Financing Takeout — Up to 30-Year Fixed

Once your hard money loan is in place and you are ready for long-term financing, we can basically help you transition to a permanent loan — up to a 30-year fixed rate mortgage.

Step 1 — Phone Call / Application / Approval / Appraisal / Needs List

The perm financing process starts the same way — a call, a short application, and approval. An appraisal is ordered and we send a Needs List based on the loan program you qualify for.

Depending on the program, documentation requirements vary:

  • Full Doc — standard income documentation (W2s, tax returns)
  • Stated Income — state your income without full documentation
  • Bank Statements — qualify using 12–24 months of bank statements

Steps 2 and 3 — Same as Hard Money Steps 6 and 7

From there it is basically the same as the hard money process above — underwriting Needs List gets resolved, title closes, notary comes to you, and the hard money loan is paid off and replaced with your long-term permanent financing.

Ready to Start?

Call 800-547-9081 Monday through Friday, 8AM to 6PM CST. We will walk you through it step by step.

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 →
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.

1

Buy

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

2

Rehab

Draw-schedule construction funds released as work completes

3

Rent

Property stabilized with a paying tenant in place

4

Refinance

DSCR refinance pulls cash out based on new appraised value

5

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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
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.

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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.

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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.

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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.

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