Sometimes, the numbers are tight, and traditional financing just isn’t an option. You come across a great real estate deal—but the bank shuts the door. Maybe your credit isn’t where it needs to be, or you simply don’t have time for their slow approval process.
It’s frustrating. You know the property has potential. You know you can turn it into something profitable. But without fast funding, someone else will beat you to it.
That’s where hard money lenders san antonio come in. They offer speed and flexibility—but the terms can be confusing at first. High fees, short timelines, and strict property requirements can make it hard to know if it’s the right move.
Before you make that decision, here are the four key things you need to understand:
1. Understand the Loan Fees Upfront
Hard money loans come with different cost structures compared to traditional bank loans.
- Lenders typically charge “points”—a percentage of the total loan amount (usually 2–3%).
- These fees are paid upfront, when you receive the loan.
Always ask for a breakdown of all costs before signing to avoid surprises.
2. Property Value Plays a Big Role
With hard money loans, your property is the priority.
- Lenders focus on the current value and after-repair value (ARV).
- In markets like San Antonio, they look for properties that have strong income or resale potential.
The better your property’s prospects, the better your loan terms may be.
3. Short-Term Loan, Long-Term Strategy
Most hard money loans are designed to be short-term, lasting 6 to 12 months.
- They’re perfect for fast-moving investment deals, like fix-and-flips.
- You’ll need a clear exit plan, whether that’s selling the property or refinancing into a longer-term loan.
These aren’t set-it-and-forget-it loans—they require planning and quick execution.
4. Lender Focuses on the Deal, Not Just You
Credit score? Not the main concern.
- Hard money lenders—especially in cities like Austin—look at your project’s potential, not just your financial history.
- If the deal makes sense and there’s solid equity, your chances of approval go way up.
Having experience in real estate helps, but a strong plan can speak just as loud.
Final Thought: Speed Matters, But So Does Choosing the Right Lender
Look for a lender who’s not only fast but also honest and transparent. You want someone who understands urgency—but won’t cut corners. The right lending partner will help you move forward confidently, not just quickly.
