Hard Money Loan FAQs
Longleaf Lending is different than other lenders. We are direct hard money lenders - meaning we don't sell or broker your loan. We control the process. It is fast, simple, and transparent. Here's what you need to know about our hard money loans:
A hard money loan is a short-term loan that is used to acquire and rehab investment properties. Hard money loans typically fund 100% of repair costs and ~90% of acquisitions costs.
Hard money loans offer many advantages over traditional sources of capital including:
- Maximize investor returns by reducing out of pocket expenses
- Provide for faster closes giving investors an advantage over traditional sources of capital
- Increase investor liquidity
- Reduced qualification requirements including credit score
Longleaf Lending is a balance sheet hard money lender, which means we fund our deals with our money and do not have to seek approval from other organizations.
- We do not broker our loans!
- We do not require an appraisal to close, which allows us to close faster than our competition
- Our process is designed to move quickly and efficiently in order to put our borrower in the best position to succeed
- Finally, we won’t change our terms on a deal once a term sheet is submitted and signed (provided there are no changes to the deal).
- Single family (1-4 units)
- Infill land
We can fund in as fast as 48 hours provided clear title and diligence requirements are met.
We’ll consider deals anywhere in Texas. The major metro areas we lend in are:
- Fort Worth
- San Antonio
- College Station
- Corpus Christi
No. We focus on the property but will look at the borrower’s liquidity and experience in coming up with our investing decision. For a refinancing exit strategy, we may require a credit pull to ensure this is a viable option.
- Origination Fee: 2-3 points ($2,000 minimum)
- Processing Fee: $500-750
- Flood Certification: $12.50
- Appraisal Fee: ~$500
- Wire Fee: $25
- Draw Fees: $150/draw
No. We do require appraisals, but we don’t need completed to close. This allows us the ability to close in as little as 48 hours.
Prior to the approval of the deal, the investor will submit a detailed, itemized budget of repairs to Longleaf. After closing, the investor will fund each stage of repairs. Upon completion of each stage of repairs, the investor will submit an itemized draw request to Longleaf. Longleaf will send an inspector to verify the work is completed and of good workmanship quality. After the inspection is complete, Longleaf will refund the investor for the repairs per the itemized budget submitted in the approval process.
Yes. We will consider extensions provided the loan is in good standing. Extensions typically last 3-6 months.
In cooperation with the investor, Longleaf runs its own comps to arrive at an After Repair Value (“ARV”). Longleaf will determine it’s loan to ARV based on the projects profitability and investor experience. We typically fund 70-75% of ARV.
We do not front repair costs.
Typically around 10% of the purchase price. However, we’ll consider any deal based on our history with the borrower and the merits of the deal.