The Best Hard Money Lender in Texas

Hard money loans are a form of private money financing that is used to purchase investment real estate that may not conform to conventional underwriting standards. Funds for hard money loans generally come from private individuals or from mortgage pool funds run by fund managers that raise capital from multiple individuals.

Hard money lenders are able to approve and fund a loan much more quickly than traditional lenders such as banks. They do not require as much documentation because they are primarily concerned about the value of the real estate being used as collateral versus the credit and income of the borrower. Hard money loans often provide more leverage than conventional loans, allowing borrowers to rely less on their own or outside investors’ capital.

Hard money loans are offered for a variety of investment purposes including:

• Fix and flip loans that allow you to acquire, renovate and sell real estate;
• Bridge loans which help you close quickly on time-sensitive investment loans;
• Cash-out loans that allow you to refinance real estate you already own in order to obtain capital for another purpose;
• Construction loans whereby a borrower may be able to finance a portion of the site acquisition and much or all of the construction cost.

First and foremost, choose a lender that is experienced with the type of loan that is being requested. The lender should understand the collateral and strategy and be able to structure a deal that offers you the opportunity to have a profitable outcome. A good hard money lender can often add value to the investment decisions that you must make. Next, verify that your lender has the capacity to make the loan and the capability of executing it in the time frame required. Finally, make sure that your lender has a reputation of integrity and conducts its business with honesty and transparency.

We lend on non-owner occupied single-family residential (1-4 units), townhomes, condos, multifamily, commercial, land, and other special-purpose uses.

Currently, we are lending hard money in the major markets of Texas including Dallas, Fort Worth, Houston, Austin, San Antonio, Corpus Christi, and the Rio Grande Valley. Bay Mountain Capital is also lending in Atlanta GA, Savannah GA, Oklahoma City OK, Tulsa OK, Knoxville TN,  Chattanooga TN, Memphis TN, Johnson City TN, Bristol TN, Kingsport TN, Huntsville AL, Birmingham AL, Tampa FL, and Jacksonville FL.

Yes. Borrowers must have a minimum credit score of 600. Anyone with a credit score less than 600 will be considered on a case-by-case basis.

Yes. Bay Mountain Capital loans to both full-time real estate entrepreneurs as well as employed individuals who are seeking to supplement their income.

Yes, we can accept almost every type of legal entity as a borrower. The principal manager or managers will be required to personally guarantee the loan if there is an entity borrower.

Yes.

Yes, we have a minimum loan amount of $50,000 in primary markets and $75,000 in secondary markets.

Please fill out the hard money loan application completely. The application will only take a few minutes. Someone from Bay Mountain Capital will contact you quickly, usually within the same day.

To obtain a prequalification letter, follow the Get a Pre-Approval Letter link to obtain your letter.

No, applying is free. After you submit your application and provide us with the necessary information, we will send you a preliminary term sheet. If you decide to move forward, then you will need to return the term sheet signed and an appraisal will be ordered which you will be required to submit payment for directly to the appraiser.

Yes, we require an appraisal that will value the property subject to the rehab or construction budget. This appraisal can be a valuable tool when you either sell the property or refinance into a long-term loan.

This depends on how quickly we receive all of the necessary information about the property, and the borrower. Usually, once we have the appraisal back if the title is clear we can close as quickly as one day. Generally, the entire process takes on average two weeks from application to close.

In addition to the online loan application we will need:

• Evidence of at least one Fix & Flip project completed during the past 36 months via a buy-side Closing Statement and a sell-side closing statement; all other experiences will be evaluated on a case by case basis
• Formation documents if the borrower is an entity:
  • EIN document
  • Certificate of Good Standing
  • Articles of Organization/Formation
  • Operating Agreement if existing
• Individual borrowers must have filed the last two years of Federal income tax returns
• Entity borrowers must have filed the last two years of Federal income tax returns (where applicable)
• To qualify, all members must have filed federal income tax returns for the past two years and at least one member has a credit score of 620 or above
• Copy of driver’s license of individual borrower or principals of entity borrower
• A credit report (not just score) within the past 90 days for an individual borrower or at least one principal of entity borrower can be submitted for verification. BMC can pull a soft report at the borrower’s request.

Typically, our loans are for a term of 12 months with possible extensions available subject to Bay Mountain Capital approval. However, depending on experience, 6-month terms may be available. Interest rates generally start at 11.9% and there will be loan fees of 2-3% of the loan amount. You will also have to pay the cost of an appraisal and our processing fee of $945.

Yes. At a minimum, the property will be inspected by the real estate appraiser during the appraisal process.

Yes, Bay Mountain Capital requires hazard insurance on the subject property prior to closing. We work with an affiliate insurance broker and can help you find the appropriate hazard insurance policy quickly and at competitive rates.

We service our loans here at Bay Mountain Capital in our Dallas office. Our pledge is that you will be treated courteously and your loan will be serviced with accuracy and professionalism.

Yes, we require monthly payments. Typically those are interest only payments plus a tax escrow payment.

At your request, we will order an inspection of the property to determine how much of the scheduled work has been completed. Once we receive this report, we process your draw and fund the eligible amount to you by your choice of check, ACH, or wire transfer. Generally, the entire draw process takes three to five business days from request to funding.

Our 6-month loan program comes with two 90-day extensions built in, which can be exercised at the lender’s discretion (as long as the loan is in good standing) for a fee. Extensions to the 12 loan program can be considered on a case-by-case basis.

Just email our loan servicing department at loanservicing@baymountaincapital.com and we will provide you, your mortgage professional or your title company with a payoff statement, usually within 48 hours.

Absolutely! We pay for referrals – please check out our hard money loans for brokers for more information.

Our business is built on repeat customers. As long as you have the experience and financial capability of handling multiple properties, we would like to be your lending partner!