Hard Money Capital for DFW Deals That Can't Wait
Asset-based, private capital for borrowers who need to close fast or do not fit a bank credit box.
- Auction, REO, and probate acquisitions
- Borrowers with credit or income issues banks can't fit
- Fix-and-flip and value-add commercial projects
- Bridge between distress and a permanent loan
Hard Money Loans, at a glance
- Loan size
- $250K – $20M
- Amortization
- Interest-only
- Term
- 6–24 months
- LTV
- Up to 65% of as-is value
- Rate
- 9%–13%
- Typical close
- 7–14 days
Hard money is capital of last resort, and in the right situation, it is the only product that will actually close. Hard money lenders underwrite to the value of the collateral, not the borrower's credit score or income documentation, which means deals that would be dead at a bank can close in under two weeks with a private capital source. The trade-off is rate: hard money pricing is 3x–4x higher than conventional, and terms are short.
In DFW the hard money market is unusually deep. There are dozens of local and regional private lenders who know the submarkets and will quote same-day on a deal with a clear exit. We use hard money for auction purchases where cash is required, probate and estate sales where the seller cannot wait, commercial fix-and-flips with short hold periods, and borrowers whose files are too complex for a bank but whose real estate is solid. The goal is always to refinance out of hard money into cheaper debt within 6–12 months.
When hard money is the right call
Hard money makes sense when one of three things is true: the borrower needs to close faster than a bank can move, the borrower does not qualify for bank debt, or the property is not yet eligible for bank debt (vacant, distressed, pre-renovation). In any of those scenarios, the higher rate on hard money is worth it because it unlocks the deal that would otherwise be impossible.
Hard money does NOT make sense as a long-term hold. Paying 11% for 30 months while the property throws off a 7% cap rate is a losing math problem. We only place hard money when there is a clear, credible refinance or sale exit within the term of the loan.
How DFW hard money actually gets priced
Rate is a function of LTV, leverage on cost, borrower experience, and the strength of the exit. A 55% LTV deal with a clean exit and an experienced operator in Dallas prices tighter than a 65% LTV deal on a vacant property with a first-time sponsor. Origination fees (points) run 1.5%–3%, and some lenders charge an exit fee on top of that.
The biggest cost driver most borrowers miss is the minimum interest provision. Many hard money loans require a minimum of 6 months of interest even if you refinance in month 2. Always ask about minimum interest before signing a term sheet, we negotiate it out whenever we can.
Ready to explore Hard Money options?
Get a QuoteHard Money Loans, FAQ
How fast can hard money close in DFW?
A private lender with a clean file, a recent appraisal in hand, and title already ordered can close in 7–10 days. We have closed hard money deals in under a week when the exit was bulletproof and the lender had existing comfort with the submarket.
Do hard money lenders check credit?
Most will pull credit, but they underwrite to the collateral, not the score. A 580 credit score with a strong down payment and a clean property can absolutely get approved. A 780 credit score on a bad deal will still get declined.
What LTV will DFW hard money lenders go to?
65% of as-is value is the practical ceiling for most commercial hard money in the DFW market. Some lenders will push to 70% on particularly strong collateral; others cap at 60% on special-use or vacant property. Rehab funds can be added on top of the acquisition loan in certain structures.
Is hard money the same as a bridge loan?
They overlap but are not the same. Hard money is typically smaller, faster, more collateral-driven, and priced higher. Institutional bridge loans are larger ($5M+), underwrite the borrower and business plan more heavily, and price lower. Both are short-term. We use whichever fits the deal.
Can I refinance a hard money loan into a conventional loan?
Yes, and that is the entire point of taking hard money in the first place. As soon as the property stabilizes or the borrower's story cleans up (typically within 6–12 months), we refinance into bank debt, agency, or CMBS at a dramatically lower rate. Building the refinance exit is part of our work on the front end.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
SBA 7(a)
SBA 7(a) Loans
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Loan size
- $50K → $5M
- Close
- 45–60 days with Preferred Lender
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