ServicesHard Money Loans
Hard Money Loans for Investors in Sunset Valley
A fixer-upper that a traditional lender will pass on can still be financed. We weigh the property, your renovation budget and how you plan to pay the loan off, then explain terms, draws and closing. The same loan officer guides your file from first call to payoff.
Financing built around the property, not the paperwork
A hard money loan is short-term financing secured by real estate. Approval leans on the value of the property and the strength of your plan more than on tax returns or a long income history. Terms often run from several months to a couple of years, usually with interest-only payments, and the loan is meant to be paid off when you sell or refinance.
It suits investors buying a property that needs significant renovation, buyers competing against cash offers, and anyone whose deal will not fit a conventional loan in its current condition. It is not meant for a primary residence. If the property is already in good shape and you plan to hold it long term, a conventional loan or a bank statement loan may cost you less, and we will say so.
From the first phone conversation to the payoff, the same loan officer handles your file. You will not be handed from an intake desk to a processor to a draw department and asked to explain the project each time.
What we handle on a hard money loan
Deal review before anything is signed
We look at the purchase price, the renovation budget, the expected value when the work is finished and your exit. If the numbers are thin, you hear that early.
Purchase and renovation funding
Loans can cover part of the purchase and part of the renovation budget. How much depends on the property and your experience, and we explain the split in writing.
A draw schedule that matches the work
Renovation funds are released in stages as work is completed and verified. We set the stages with you so money arrives when your contractor needs it.
Coordination with title and appraisal
We keep the title company, appraiser and your agent working from the same timeline, and you get updates from one person.
Planning the exit
If you intend to refinance into a longer-term loan once the property is finished, we can talk through what that loan will require before you close on the first one.
Signs hard money is the right tool
The property will not pass a standard appraisal
Missing kitchens, roof problems or foundation work can stop a conventional loan cold. Hard money lends on the plan as well as the current condition.
You are up against cash buyers
Sellers of distressed properties often favor offers that can close without long underwriting. Asset-based financing can make your offer more competitive.
Your income is hard to document the usual way
Investors with irregular income or many properties sometimes struggle with traditional debt ratios. The property carries more of the weight here.
You have a clear sale or refinance in view
Hard money works best when you know how you will pay it off. Without an exit, the higher cost of short-term money can eat into your return.
How a hard money loan moves from call to closing
- 1
A conversation about the deal
You call and tell us about the property, the budget and your timeline. We talk through whether hard money fits and give you rate quotes based on what you share.
- 2
Application and property review
You complete a loan application and send the purchase contract, scope of work and any photos. We order the valuation and review your experience and reserves.
- 3
Written terms
You receive the rate, points, loan amount, draw structure and term laid out plainly. Questions come to the same loan officer who wrote them up.
- 4
Closing and draws
We coordinate closing with the title company. After closing, you request draws as work is finished, and each one is checked against the schedule before funds go out.
What shapes the cost of a hard money loan
Short-term, asset-based financing is priced above a 30-year mortgage. You are paying for speed and for a lender willing to fund a property in the middle of renovation. What you spend in the end comes from the interest rate, any upfront points charged when the loan funds, and the length of time the balance stays outstanding. We put each figure in writing so you can weigh it against the profit you expect from the project.
- How much of the deal you finance
- Asking the loan to cover a larger share of the purchase and renovation raises the lender's risk, and the rate usually follows. Putting more of your own money down tends to bring better terms.
- Projects you have completed
- Borrowers with several finished flips or rentals behind them typically receive stronger terms than someone taking on a first renovation.
- Size of the renovation
- Fresh paint and flooring is a different risk from a full gut and rebuild. Bigger scopes often mean more draws, more inspections and a longer term.
- How long you hold the loan
- Interest is charged every month the balance is open, so delays add cost. If the project outruns the term, an extension fee may apply.
- Type of property
- A standard single-family property near Sunset Valley is usually easier to value than an unusual or rural one, and simpler valuation can mean cleaner terms.
Hard money loan questions
Something not covered here? (512) 746-0139
Is hard money an option if I plan to move into the property?
No. Our hard money lending is limited to investment property only. If you will be living there, a conventional, FHA or VA loan is the better fit, and we can walk through those choices on the same call.
Does my credit score matter?
Yes, we still pull and review your credit. It simply carries less weight here than it would on a conventional mortgage. Most of the decision rests on what the property is worth, how much you put down and how you plan to pay the loan off.
How are renovation funds paid out?
Through a draw schedule agreed on before closing. Each time a stage of work wraps up, you ask for that draw, the completed work is checked, and the money is released. A well-planned schedule keeps your contractor paid without gaps.
What happens if my project takes longer than expected?
Many hard money loans can be extended, usually for a fee. The earlier you mention a likely delay, the more room we have to sort out options before the term ends instead of after it.
Can I refinance out of the hard money loan when the work is done?
That is one of the most common ways borrowers pay it off. Once the renovation is complete and the property appraises, you may qualify for a longer-term home loan. We can review what that refinance will ask of you before you start the work.
Talk through your next investment property
Tell us the address, the budget and how you plan to exit. One loan officer will review the deal with you and explain the terms plainly.