Hard Money is the term used for loans funded by private parties that cannot be funded by conventional lending institutions. There are many types of hard money loans. Other common industry terms used in lieu of “hard money” are: private, asset-based, bridge, rehab, interim, etc. Generally, Streamline Funding focuses on providing profitable lending solutions to real estate investors that purchase residential investment properties at substantial discounts and/or properties with large “value-add” or “upside” opportunity.

Only the smart ones. Many types of investors utilize hard money from smaller investors who only want to do the occasional fix-and-flip to enterprise-level home builders and developers who require quicker funding than is possible through traditional lenders like banks.

Many real estate investors need quick funding to secure a deal. Banks and other institutional lenders that typically offer the lowest interest rates do not provide the same speed and transparency in their decision making or funding process. Investors normally use hard-money lenders in cases when they are either unable, unwilling or do not have the time to obtain financing from more conventional sources.

Having funded private loan opportunities since 2002, we have seen several different cases in which hard money loans make more sense than traditional loans. In our experience, even investors with strong financial statements and access to traditional financing choose to use hard money because:

a) They require a quick closing and their bank can’t make the deadline.
b) They have an excellent investment opportunity but don’t have sufficient financial strength to get a bank loan.
c) They need more leverage than a bank is willing to give.

a) A much less complex application process is required for the lender to make a final loan decision.
b) There is less scrutiny of the Investor’s personal financial situation including income, tax returns, assets and liquid reserves, as compared to bank loans.
c) Streamline Funding does not expect perfect credit and/or substantial amounts of disposable income from its clients. Instead we focus on the merits of the specific deal under consideration.

a) Hard Money loans typically have higher interest rates and origination fees than conventional bank loans.
b) The quality of active lenders varies substantially, and in certain cases, some lenders may be seeking to write loans where the risk of default is considerably higher in order to foreclose on the underlying real estate as their business model. At Streamline Funding we constantly seek the repeat business of our clients and only approve those deals that we believe are financially feasible.

Hard Money Lenders differ from one another in many ways, including their lending criteria such as the Loan to Value or Loan to Cost ratios, the type of real estate on which they lend, minimum and maximum loan sizes and the geographic regions which they service. If an investor wants to compare a hard money lender to another from an “apples to apples” standpoint they can consider things such as pricing (fees and interest rates), flexibility of terms, their reputation and the quality of service. Approximately 75% of the investors that Streamline Funding has financed have returned for a second (or third, fourth…) loan.

You can now get pre-qualified online by submitting the form on our Apply Page. A Streamline Funding loan officer will contact you shortly afterward.

Streamline Funding lends throughout the five major metropolitan areas in the state of Texas, specifically Austin, San Antonio, Houston, Dallas and Fort Worth. Other secondary markets in the state are also considered on a case-by-case basis.

Sorry, no. Streamline Funding does not lend on any owner-occupied investment properties. Streamline’s hard money lending program was created exclusively to finance non-owner-occupied properties.

Streamline Funding currently has six different loan programs to help Investors with a multitude of projects ranging from fix-and-flips to longer term deals. Please see our Loans Page for more details.

Streamline Funding makes its lending decisions based heavily on the project’s Loan to Value (LTV) ratio. In addition to the LTV, the Loan to Cost (LTC) ratio is considered. These ratios measure the risk of the loan by comparing the loan amount to the cost of the project and the value of the asset, respectively. Streamline Funding has incorporated an After Repair Value (ARV) approach to valuing its real estate projects, as well. In many cases, Streamline Funding can fund as much as 70% of the ARV of a property assuming all of the other criteria is met to allow for such a loan approval.

Of course! Once you have qualified for a loan with Streamline Funding, a Letter of Credit or “Letter of Intent” will be prepared for you. This letter is not a commitment to lend nor is it a “Proof of Funds” letter. Instead it is a letter that can be presented to a seller during the contract negotiation period that shows our intent to lend you an amount typically equal to or greater than the purchase price.

Loans are typically closed in 7-10 days. This assumes we have the investor’s complete cooperation in submitting a clean and transparent loan package. The speed of the transaction is very dependent on the accuracy of information and investor’s response times.

First and foremost, Streamline Funding looks to make sure that your transaction is a positive one. If a deal is too “skinny” and it looks like it may fail, we will pass on the opportunity. Secondly, we look at the property’s ability to repay the debt. Finally, we look at the investor’s ability to service the debt as well as their credentials (experience) for a project such as the one that he or she is applying for.

On every deal, we require a loan application, a copy of the contract (for purchases) or HUD-1 (for refinances), bio or resume for the investor, appraisal, survey, hazard or builder’s risk insurance, title commitment and entity documents.

Our rates and points are fixed but vary slightly depending on the borrower and the specific project.

Pat yourself on the back – you’re a champ! After a loan has closed, your file will be transferred to our loan servicing division for the duration of the loan and (assuming your project has a construction component) you will work with them on your future construction draws. At the time of the transition, you will be greeted by somebody on the loan servicing or construction control team to walk you through the process and give you tips on how to better execute your project while still complying with our processes.