Timing is everything in commercial real estate. Miss a closing window and you lose the deal — sometimes to a competitor who was willing to pay less but move faster. That’s why one of the first questions serious Texas investors ask isn’t “what’s the rate?” It’s “how fast can you close?”
How Long Does a Conventional Commercial Loan Take?
Conventional commercial loans from banks offer the best long-term rates — but they’re slow. A conventional commercial loan involves application and pre-approval (1-2 weeks), third-party appraisal (3-6 weeks), environmental and property inspection (1-3 weeks), underwriting and credit committee (2-4 weeks), and closing (1 week). Total: 8 to 16 weeks in most cases. In the Texas commercial market — particularly in DFW, Houston, Austin, and San Antonio — a 90-day close can mean losing a deal to a cash buyer.
How Long Does a Hard Money Loan Take?
Hard money loans are asset-based loans made by private lenders. The underwriting focuses almost entirely on the property — its value, its income, and its marketability. A typical hard money commercial loan process: application and review (24-48 hours), property valuation (2-5 days), underwriting and approval (3-7 days), closing and funding (7-14 days total). For an experienced hard money lender with in-house underwriting, a 10-day close is realistic.
When to Use Each Type
Use conventional financing when: you’re buying a stabilized, cash-flowing property for long-term hold, your financials are clean, and you have 60+ days to close.
Use hard money when: you need to close in under 30 days, the property needs renovation, you’re competing against cash buyers, your tax returns don’t reflect your real income, or you’re buying in an LLC.
The Bridge-to-Perm Strategy
One of the most effective uses of hard money in Texas is as a bridge loan. Use hard money to close quickly and secure the deal, renovate or stabilize the property, then refinance into conventional financing once the property has seasoned and income is documented. This lets you compete with cash buyers during acquisition while still capturing long-term rate benefits.
Texas Commercial Financing Since 1998
Texas commercial real estate moves fast. Having both options available — and understanding when to use each — separates investors who consistently close deals from those who consistently lose them. Commercial Loans of Texas offers both hard money and conventional commercial loan programs, with in-house underwriting and no upfront fees. Call 877-895-3634 or visit commercialloansoftexas.com.