ServicesHard Money Loans
Hard Money Loans in Smithville
We fund investment property based on what the property is worth and what you plan to do with it, not on tax returns. Before we quote anything, we walk through the purchase price, the rehab budget and your exit plan, and tell you plainly what we see.
What a hard money loan is and when it fits
A hard money loan is a short-term loan secured by the property itself. Approval leans on the asset: its purchase price, its current condition and its projected value once the planned renovation is finished. Your credit and income still matter, but they are not the main gate the way they are on conventional loans. That is why these loans can close in a fraction of the time a bank needs.
They fit a narrow set of jobs. Buying a distressed property that won't pass a conventional appraisal. Funding a fix-and-flip where the purchase and the rehab budget need to be in one loan. Winning a cash-style offer when a seller wants a short closing. They are built for investors and for property that is not your primary residence.
They cost more than long-term financing, and they are meant to be paid off within months, not years. So the first thing we do is look hard at the deal. If the numbers only work on optimistic assumptions, we will say so before you sign anything.
What we review and what the loan covers
Deal review before terms
We go through the contract price, the scope of work, your comparable sales and your timeline. You get our read on each one, including any number we think is soft.
Purchase and rehab in one loan
Most of our hard money loans can fund part of the purchase and part of the rehab budget. The rehab portion is held back and released in draws as the work is completed.
Valuation on as-is and ARV
We order a valuation that looks at the property today and after the planned work. Loan amounts are set against both figures, so you know early how much cash you need to bring.
Draw schedule and inspections
Each draw is tied to a stage of work, such as roof, mechanicals or finishes. A quick inspection confirms the stage is done before funds go out, which keeps the budget and the property in step.
Exit plan check
We confirm how the loan gets paid off: a sale, or a refinance into a long-term rental loan. If the exit is a refinance, we test whether the finished property and your profile can actually qualify for it.
Signs a hard money loan is the right tool
- The property won't appraise as livable
- Missing kitchens, failed foundations or no working HVAC can stop a conventional or FHA appraisal cold. Hard money lends on the property as it is.
- The seller wants to close fast
- Estate sales, auctions and motivated sellers often favor buyers who can close in days. A bank timeline can cost you the contract.
- Your income is hard to document
- If your tax returns show heavy write-offs, a bank may not count enough income. The asset carries more of the weight here. For a long-term option, our bank statement loans may also fit.
- You plan to sell or refinance within a year or so
- Short holding periods are where hard money makes sense. If you plan to hold for years, we will point you toward longer-term financing instead.
How a hard money loan moves from call to closing
- 1
Talk through the deal
On the phone or by video, a loan officer asks for the address, the contract price, your rehab budget and your exit plan. We tell you right away if anything looks off.
- 2
Review the property and numbers
We order the valuation and check your scope of work against it. You get a plain summary of what we found and what it means for the loan amount.
- 3
Term sheet
We lay out the loan amount, rate, points, term, draw schedule and the cash you need at closing. Nothing is left as a later surprise.
- 4
Title work and closing
The title company clears any liens or recording issues, and the closing documents are prepared for your review ahead of time. Closing can happen at our office or with a mobile notary.
- 5
Draws and payoff
As work is finished, you request a draw, we confirm the stage, and funds are released. The loan is paid off when you sell or refinance.
What moves the cost of a hard money loan
Hard money pricing has more moving parts than a 30-year mortgage. The rate is only one piece; points, the term length and how much of the deal you finance all change what you pay. We put every one of these on the term sheet so you can compare them against your projected profit.
- Loan-to-value and loan-to-ARV
- The more of the purchase and rehab you finance, the more risk sits with the lender. A larger down payment usually brings better terms.
- Your track record
- An investor with completed flips or rentals behind them often qualifies for lower points than a first-time investor. We ask for a short list of past projects.
- Scope and condition
- A cosmetic refresh and a full gut with structural work carry different risk. Heavier rehab can mean a larger holdback and more draw inspections.
- Term length
- Longer terms give you breathing room but add interest. We help you choose a term that matches a realistic timeline, not a best-case one.
- Property location and type
- A single-family property in Smithville, Bastrop or Elgin values differently than rural acreage near Giddings or La Grange. Resale depth affects how we size the loan.
Hard money loan questions
- Can I use a hard money loan to buy a house I plan to live in?
- Generally no. Hard money loans are built for investment property, not a primary residence. If you plan to live in the property, conventional loans, FHA loans or VA loans are the right place to start, and we can talk through those on the same call.
- How fast can a hard money loan close?
- It depends mostly on the valuation and title work, not on us waiting for paperwork from you. Clean title and a responsive seller help the most. We give you a realistic closing date after we review the property, not before.
- Do you check my credit?
- Yes, but it is not the deciding factor. We look at credit to understand your history and to price the loan. The property, your equity in the deal and your exit plan carry more weight.
- What happens if the rehab runs over budget or schedule?
- Call us as soon as you see it. We look at what changed and whether an extension or a revised draw schedule makes sense. That is also why we check your budget closely at the start, since most overruns trace back to a scope that was too thin.
- How is a hard money loan different from a bridge loan?
- A hard money loan is usually tied to buying and improving an investment property. Bridge loans help you buy a new property before the sale of a current one closes. If you are not sure which fits, describe the situation and we will tell you which one we would use.
Bring us the deal before you commit
Send us the address and your numbers by phone, and we will review the property, the budget and the exit with you. You will hear what we see before we recommend a loan.