Hard Money Loans
Hornet’s Hard Money Loans are available for projects in Texas.
Generally, a hard–money loan is a short-term, asset-based loan intended to be paid back within 6-18 months. They are ideal for real estate investors looking for a quick purchase on properties that they intend to sell or refinance within this short period. Since our underwriting is largely based on the asset itself, we typically can lend more, and quicker, on a project than banks and other conventional lenders that have more in-depth cashflow underwriting requirements. Being asset-based increases risk for the lender and therefore justifies a higher rate.
Hornet’s hard-money loans can also include a construction component to help the investor fund improvements or development. These construction funds can be drawn using standard reimbursement methods, or through our proprietary software which facilitates payment to your trades and suppliers directly, thus conserving your own cashflow.
Our loans are typically around 70% of the final value of the property with current rates around 13% and 3pts.
Gap Loans are second position, short-term loans available for various scenarios. It can cover down-payments or bring additional funds to an existing project.
Due to the added risk of these loans they are usually much higher interest and we only originate them in the Central Texas area. We also will often require additional collateral as needed to get at or under our 70% loan-to-value goal.