ServicesHard Money Loans
Hard Money Loans in Bee Cave
When a property needs work a bank won't finance, or a seller wants to close sooner than a standard mortgage allows, a hard money loan can carry the purchase. We look at the property, your plan and your way out, then tell you plainly whether this is the right tool.
A Short-Term Loan Built on the Property
A hard money loan is short-term financing backed mostly by the real estate. Instead of years of tax returns, underwriting looks at what the property is worth now and what it should be worth after the work is finished. Terms are measured in months rather than decades, and payments are often interest-only while you renovate or line up your next move.
That speed and flexibility come at a higher price than a conventional loan, so it is not our first suggestion. If a bank statement loan or a conventional loan could fund your deal for less, you will hear that on the first call. Hard money is worth it when the timeline or the property's condition rules out the slower route.
Our loan officers have 11 years in the mortgage industry, and we have held an NMLS license for 10 years. That experience lets us look at a deal from both ends: what the short-term loan has to cover, and what the long-term refinance will require of you down the road.
What a hard money loan with us covers
Purchase financing
We fund a share of the purchase price based on the property's current value. That lets you make a firm offer on a distressed or dated property without waiting on a full mortgage file.
Renovation draws
Your rehab budget can be built into the loan and released in stages as work is completed. Each draw follows an inspection, so money moves with progress instead of ahead of it.
A written term sheet
Before you commit, you see the rate, points, term, extension options and every fee in writing. Nothing is added at the closing table that you have not already read.
An exit plan review
We talk through how the loan gets paid off, whether by sale or by refinancing into longer-term financing. If the refinance looks thin, we tell you before you buy.
Coordination with title
We work with your title company and agent on dates and documents so the closing lands on schedule.
Signs hard money fits your deal
The property won't appraise as-is
Missing kitchens, old roofs, foundation movement or unpermitted additions can stop a standard appraisal cold. A hard money lender looks past current condition to the finished value.
The closing date is tight
Some sellers, estates and auctions want a short close. A typical mortgage timeline may simply not fit.
Your income is hard to document
Recent self-employment, large write-offs or irregular deposits can slow a conventional file. Hard money leans on the asset, though Bank Statement Loans may be the cheaper answer if time allows.
You need to buy before you sell
If equity is tied up in a property you haven't sold yet, short-term money can bridge the gap. We'll also compare it against our Bridge Loans so you can see the difference.
You run several projects at once
Investors working more than one rehab often hit limits on conventional financing. Asset-based loans let each property stand on its own numbers.
How It Works, Step by Step
- 1
An initial phone call
Share the address, purchase price, renovation plans and how you expect to exit. Investors call us from Lakeway to Dripping Springs, and the conversation is the same no matter where the property is.
- 2
Reviewing the deal and its value
We order a valuation of the property as it stands and as it will be once finished, and compare your budget with the scope of work. If the numbers look tight, we show you where.
- 3
Written terms
You get a term sheet listing leverage, rate, points, term and the draw schedule. Read it at your own pace, ask anything and weigh it against other offers.
- 4
Closing and funds
After title clears and documents are signed, the purchase is funded. The renovation money is set aside for draws.
- 5
Draws through payoff
As each stage of work wraps up, you ask for a draw and we send funds once it is inspected. When you sell or refinance, the loan is paid off and the lien comes off.
What moves the cost of a hard money loan
Hard money is priced for speed and risk, so it costs more than a long-term mortgage. The exact terms depend on the property, the plan and the borrower. We walk you through each piece before you sign.
- Leverage
- The more of the purchase and renovation you want financed, the more risk the lender carries. A larger down payment usually earns better terms.
- Property condition and scope
- A cosmetic refresh is viewed differently from a full gut with structural work. Bigger scopes mean more draws, more inspections and more uncertainty about the finished value.
- Your track record
- Borrowers with completed projects behind them often see better pricing than a first-time investor. Credit still plays a part, just a smaller one.
- Term and extensions
- A longer term or built-in extension options add flexibility and usually some cost. Choosing a term that matches your realistic timeline keeps you from paying for extensions later.
Questions About Hard Money Loans
Something not covered here? (512) 881-7587
Can a hard money loan pay for a place I will live in?
Hard money is meant for investment and business-purpose property. If you will live in it, another loan almost always suits you better. We will steer you to Conventional Loans, FHA Loans or VA Loans and help you sort out which one fits.
How fast does a hard money loan close?
Typically sooner than a standard mortgage, since underwriting centers on the property instead of a full income file. The actual timing hinges on the valuation, title work and how prepared your documents are. Once we see the deal, we give you a straight date.
Will I need strong credit?
Credit counts for less here than on a conventional loan, but it still counts. Most of the weight falls on the property's value, your down payment and your exit plan. We go over every piece on the first call.
What if the renovation takes longer than planned?
Let us know early. Many loans come with extension options, and adjusting the plan in month four beats scrambling when the loan comes due. A realistic schedule from day one is your best safeguard.
Should I move out of hard money once the work is finished?
If you will hold the property as a rental, refinancing into longer-term financing usually cuts your cost. We map out that refinance up front, so before you buy you know what the finished property needs to show.
Have a property in mind
Bring us the address and your numbers. We'll tell you whether hard money is the right call or whether a lower-cost loan will do the job.