Why Should I Use A Hard Money Loan From Stallion Funding?

Clients borrow from Stallion when they have the opportunity to profit from real estate investments but bank financing is unavailable or impractical. Our fast turnaround time and excellent service allow the borrower to take advantage of real estate opportunities that would otherwise be missed.

The most compelling reason to use a hard money loan is its speed. Our process is very simple and we don’t require tax returns, personal financial statements or really any of the hoops that banks will make you jump through.

Our hard money loans are available quickly with few questions or restrictions. If you are getting an excellent deal that needs to close quickly, a hard money loan from Stallion Funding could be the perfect solution.

Borrowers who have a number of outstanding loans are also served well by hard money loans. If you’ve reached your lender’s 4-loan or 10-loan limit, we can help you continue to leverage your real estate investments.

When Does It Make Sense To Use A Hard Money Loan?

There are several reasons to use a hard money loan. Even real estate developers with strong financial statements and access to traditional financing choose to use hard money. The primary reasons for using a hard money loan are:

1. To secure the deal, you need to close quickly and your bank cannot meet your deadlines.
2. You have an excellent investment opportunity but do not have sufficient financial strength to get a bank loan.
3. The project may be outside a bank’s scope of lending.

Who Uses Hard Money Loans?

• New real estate investors who can’t demonstrate enough income or cash reserves for a bank to qualify them
• Investors with poor credit, undocumented income or a short work history
• Experienced investors with more than 4 mortgages in their name
• Investors buying properties that need significant repairs
• Buyers who need renovation funding, not just purchase funds
• Investors who don’t have the cash required to close with a conventional loan
• Real estate investors who are highly leveraged elsewhere
• Buyers of properties that won’t appraise as-is for an acceptable value
• Buyers dealing with distressed sales that must close in days, not weeks
• Buyers of rental properties that are under-rented, in need of repair or otherwise problematic
• Property owners with high equity who need quick access to cash for any reason

Why Do Hard Money Lenders Exist?

Hard Money lenders exist because many real estate investors need quick responses and quick funding to secure a deal. Banks and other institutional lenders that typically offer the lowest interest rates do not provide the same speed and transparency in their decision-making and funding process. Borrowers use Stallion Funding in cases when they are either unable, unwilling, or do not have the time to obtain financing from more conventional sources.

Where Do You Lend?

Stallion Funding primarily lends across the major metropolitan areas in Texas including Austin, San Antonio, Houston, and Dallas as well as the fast-growing Rio Grand Valley. Loans in secondary markets will be considered on a case-by-case basis.

What Property Types Do You Lend On?

Single-family residential, multi-family residential, commercial, rehab properties, rentals, and urban land.

Will You Lend On My Homestead?

No, we do not lend on homesteads or a borrower’s current residence. All of our loans are considered commercial loans meaning that they are for business purposes. The property cannot be inhabited by the borrower.

Will You Lend To My LLC?

Yes, nearly all of our loans are made to real estate investment companies.

How Do I Get Pre-Qualified For A Hard Money Loan?

Simply submit an online application at the Stallion Funding website and make sure to include your email address and phone number. You should receive a call from someone at Stallion Funding to start the process and get you pre-qualified.

Are There Any Upfront Costs?

There are no up-front fees to Stallion Funding; we get nothing unless we fund your deal. The only cost to you is an inspection which is paid directly by you to a third-party inspector.

What Loan-To-Value Are You Looking For?

70% or less.

What Is The Interest Rate?

The interest rate ranges from 12% to 14% and is payable monthly based on current balance of the loan.

How Much Will My Payments Be?

To calculate your monthly payment, simply multiply the agreed interest rate by the loan amount (or your current loan balance) and divide that number by 12.

How Long Is The Loan For?

Loans are typically 12-month, interest-only loans with a balloon payment due at maturity. Payments are due from borrowers monthly. Borrowers have the right to repay the loan completely before the balloon is due, however, the borrower must pay at least four months of interest. If you are in good standing, the loan may be extended, but this will be decided on a case-by-case basis.

What Size Loans Do You Do?

The typical loan range is $250,000 to $5 MM. All loans are considered on a case-by-case basis.

What Criteria Do You Use To Approve A Loan?

The primary criteria are the project’s loan-to-value (LTV) ratio, market demand for the project, borrower’s experience and ability to service the debt, and an achievable exit strategy. Depending on the nature of the project, other criteria may need to be evaluated before approving a loan.

What Credit Score Are You Looking For? Do You Verify Employment? Reserves?

Answers: None, no, and no, respectively. Hard money loans are primarily asset-based, so our main focus is the value of the property.

How Long Does It Take For Approval Of A Loan?

We understand that ambitious real estate developers need to move quickly, so we strive to give you a ‘yes’ or ‘no’ on your deal within 24-48 hours.

What If I Need An Extension On A Loan?

If you are in good standing, the loan may be extended, but this will be decided on a case-by-case basis.