Texas has hundreds of hard money lenders — direct lenders, brokers, and everything in between. Finding the right one for your deal can mean the difference between closing in 7 days and getting burned with hidden fees. Here is what to look for.
Direct Lender vs Broker
A direct lender uses their own capital to fund loans. Decisions are made in-house and the process is faster. A broker shops your deal to multiple lenders, adding a layer between you and the decision-maker. Both can be legitimate — just know which one you’re working with.
Questions to Ask a Hard Money Lender
- Do you lend your own money or broker to other lenders?
- What is your maximum LTV for my property type?
- What are your points and rate?
- What is your realistic closing timeline for a deal like mine?
- What are all the fees — origination, processing, underwriting, draw fees?
- Do you have references from recent borrowers?
Red Flags to Avoid
- Lenders who charge large upfront fees before any commitment
- Promised timelines that seem too fast to be realistic
- Vague answers about where the money comes from
- No physical address or verifiable track record
- Pressure tactics to sign immediately
What a Good Texas Hard Money Lender Looks Like
Transparent terms. Clear answers to every question. A track record of closed deals. References available on request. No large upfront fees before a commitment. A realistic closing timeline based on your specific deal.
Commercial Loans of Texas has been a direct lender since 1998. Call 877-895-3634 and ask us anything.