Hard Money Lending and how it works
What is a hard money loan?
A hard money loan is a short-term, asset-based loan, that provides the funds for acquisition and repairs on investment properties.
How do I qualify for a hard money loan?
Qualifying for a hard money loan is simple, and begins by completing the application. An analysis will be performed and someone will contact you by the next business day.
How quickly can we close?
Once we have everything we require, we can usually close the next business day. We require the following items to close:
- Your executed contract
- Your repair estimate
- The appraisal we will order
- Your insurance binder
- Title company docs
What type of investor uses hard money?
All types – from new investors to very experienced investors, and from those buying rentals to those buying properties to flip. Anyone wanting to use leverage and put less of their own money down on a purchase uses hard money..
Where does Investmark loan?
We cover Dallas Fort Worth, Austin, San Antonio, and the Greater Houston Area.
What is a direct lender?
A direct lender funds transactions from their own private capital. This means there is no 3rd party (broker/middleman) in your loan transaction, keeping your cost to a minimum. Direct lenders also approve all loans internally. Investmark Mortgage is a direct lender.
What types of properties meet our lending criteria?
We loan on single family residential properties that are used for investment purposes. Investment purposes include properties to be used as rentals and properties to be rehabbed to sell (flip). Condos and town homes do not meet our lending criteria. We require that all properties have an ARV (after repair value) of greater than $90,000.
Does Investmark loan money on any property that is or will be the borrower's homestead?
No. All of our loans are for business purposes. Therefore you cannot live in any property that we finance.
Will Investmark run my credit?
We will not run your credit without your approval first. You may provide us with a credit report or your score through our secure online application process. If your intention is to keep the property as a rental, we will need to get an approval letter from your lender doing your permanent financing. If you do not have a lender for permanent financing, we can refer you to one that fits your profile.
What are the advantages of using hard money?
- Simple qualification process
- Fast Closing
- Allows for multiple deals
- Leverages your money almost 3 to 1 verses conventional or bank financing
Does Investmark offer 100% financing?
Under certain circumstances we can offer 100% financing and even roll your closing costs into the loan. These are typically loans where the purchase price is less than our maximum LTV, minus the repairs.
I have a contract and need to close quickly, what do I do next?
- Call our office as soon as possible
- Complete our application online
- Send us your contract and repair estimate
Does Investmark charge interest on the Note amount or the amount currently borrowed?
Where most lenders charge interest on the total Note amount, we do not. We only charge interest on money that is borrowed on every full priced loan. Your Note amount is the total amount we are going to loan you (Example – $100,000 loan amount in a Promissory Note). You may have $20,000 in repairs that are being escrowed by us and technically, not borrowed yet. We do not charge interest on this $20,000 until it is borrowed. In this example you would only pay interest on $80,000, until the remainder is borrowed.
Why use Investmark for your hard money loan?
We deliver speed, certainty and clarity with every client. Speed in processing your application to closing your transaction. Certainty in knowing the value of your property with a certified appraisal, and clarity in knowing all of your costs before you get to closing.
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Meet Your Lending Team
30-Year Loan Program
Long-term 30-year mortgage solutions designed to help you finance a rental property, even if you can’t qualify for a conventional or conforming mortgage loan. Typically, an investor uses a hard money loan first to repair the property, and then refinance into a long-term loan.
Hard Money Loan Programs
Short-term hard money loans are used to purchase, rehab, and sell or refinance a property. These loans are ideal for financing distressed properties, that also need to close quickly.
About Investmark Mortgage, LLC
Investmark Mortgage is a 3-time award-winning hard money lender, that covers North Texas, Central and South Texas, and the greater Houston market. We are a direct lender (not a broker), and will make funding your next investment property easy.