When you’re flipping houses in Texas, your financing choice can make or break your deal. Traditional bank loans look appealing at first glance, but they often slow down active investors who need speed and flexibility. At HiFi Hard Money, we’ve worked with hundreds of flippers across Dallas Fort Worth, Austin, San Antonio, and Houston since 2015, and we’ve seen how the right financing turns good opportunities into profitable exits.
Let’s talk about what really matters when you’re choosing between hard money and traditional bank financing for your next flip.
The Real Differences Between Hard Money and Bank Loans
Bank financing and hard money serve different purposes for different investors. Banks optimize for low rates on stable, long term holds. Hard money optimizes for speed, flexibility, and capital efficiency on short term flips. The differences go deeper than just interest rates, and understanding them helps you choose the right tool for each project.
Speed: Why Days Matter More Than Rates
Bank financing typically takes 30 to 45 days to close. That timeline works fine if you’re buying a primary residence, but it’s a deal killer when you’re competing with cash buyers on investment properties. We close loans in 5 business days for new investors and as fast as 3 business days for returning clients. That speed advantage means you can act on opportunities other investors miss.
Traditional lenders also build in multiple approval layers. You’ll wait for underwriting, appraisal reviews, committee meetings, and compliance checks. Our process focuses on the property value and your project plan. We provide quick project analysis and preliminary offers, often during off hours when you need answers fast.
What Lenders Actually Look At
Banks evaluate your personal financial picture first. They want W2 income, tax returns, debt to income ratios, and credit scores in specific ranges. Your property becomes almost secondary to your personal balance sheet.
We finance based primarily on property value. Your credit matters less than your project numbers and the after repaired value of the home. We’re looking at whether your flip makes sense, not whether your tax returns fit a formula. That approach works better for active investors who reinvest profits quickly instead of showing high W2 income.
The Money You Need Upfront
Traditional bank loans typically require 20% to 25% down payment at closing. You also pay for appraisals, inspections, title work, and loan fees before you even own the property. Those upfront costs eat into your capital and limit how many projects you can run simultaneously.
We defer fees and interim interest until you sell the property. That includes points, third party costs like appraisals and loan documents, first month’s prorated interest, wire fees, and inspection fees. Our approach minimizes what you need out of pocket so you can deploy capital into the rehab itself. We loan up to 75% of the after repaired value, which means you’re bringing less cash to closing than most traditional programs require.
How Draw Processes Work During Rehab
Banks that offer construction or rehab financing typically require scheduled inspections and have slower draw approval processes. You might wait a week or longer between requesting funds and receiving them. That delay can stall your contractor and push back your timeline.
We offer the same day or next day draw turnaround. We typically do one physical inspection at about 40% to 50% completion, and photos or videos work for other draws. Our $200 inspection fee and $35 wire fee both defer until you sell, so there’s no immediate cost for accessing your rehab funds. Speed matters when your contractor needs materials or labor payments to keep moving.
Property Types and Project Fit
Traditional lenders prefer cookie-cutter properties in specific condition ranges. They avoid heavily distressed homes, unique layouts, or properties that need significant work. Their guidelines are rigid because they’re selling loans to secondary markets.
We focus on single family homes across major markets in Texas, specifically Dallas Fort Worth, San Antonio, Austin, and Houston. We can work with properties other lenders reject because we understand investor renovations. If you’re considering a small multifamily property, we’ll look at it case by case, though our primary focus stays on single family flips.
What Transparency Actually Means
Banks often bundle fees in ways that make true costs hard to calculate. You might see origination fees, processing fees, underwriting fees, administration charges, and document prep fees that add up quickly. Some lenders mark up third party services as profit centers.
We’re transparent about every cost. When we pay for an appraisal or document preparation, you pay exactly what we paid. We don’t charge administrative fees or underwriting fees. That transparency helps you calculate actual project costs accurately from day one.
Long Term Relationships vs One Time Transactions
Banks treat each loan as a standalone transaction. You’ll go through full underwriting every time, even if you’ve closed three previous loans with them. There’s rarely continuity in who reviews your file or understands your business.
We build relationships with active investors. Returning clients get access to our 3 business day closing timeline because we already know your business and track record. Most of our clients have direct cell access to us for rapid communication. We’ve funded thousands of projects since 2015, and many of those have been repeat investors who value speed and consistency.
When Bank Financing Makes Sense
Traditional financing works well for long term holds or rental properties where you’re refinancing out of hard money. Once your property is stabilized and generating income, conventional loans offer lower rates for permanent financing.
Some investors also use bank financing when they’re not competing with cash buyers and have 45 days to close. If you’re buying off market from a seller who needs time to move, a bank loan might work fine.
When Hard Money Wins for Flippers
Hard money makes sense when you need speed, flexibility, or capital efficiency. You’re buying at auction, competing with cash buyers, or found a deal that needs immediate action. You want to minimize upfront costs so you can run multiple projects. You’re working with a property that needs significant renovation. You value direct access to decision makers instead of navigating bank bureaucracy.
Most active flippers in Texas use hard money for acquisition and renovation, then either sell or refinance into permanent financing once the project is complete.
What to Expect Working With Us
We customize each loan structure based on your project and strategy. You’ll work with the same team from application through funding, and we provide honest feedback based on thousands of completed projects. If we see potential issues with your numbers or approach, we’ll tell you directly. Our goal is shared success, not just closing loans.
When you’re ready to move on a property, you can apply online in minutes at our website. We’ll provide quick project analysis and a preliminary offer, often within hours. Once you’re approved, we move fast to meet your closing timeline.
The right financing partner understands that days matter in competitive markets and that your capital should go into properties, not unnecessary fees. We’ve built our programs around what Texas flippers actually need: speed, transparency, and terms that make projects profitable.
Ready to close your next flip in days instead of weeks? Contact us at (972) 630-6676 or apply online at hifihardmoney.com. Let’s talk about your project.
FAQs
What property types do you finance in Texas?
We focus on single family homes across major markets including Dallas Fort Worth, San Antonio, Austin, and Houston. These are non-owner-occupied investment properties. We can consider small multifamily and commercial properties case by case, though our primary focus is single family flips.
How fast can you really close compared to a bank?
We close in 5 business days for investors new to HiFi and as fast as 3 business days for returning clients. Traditional banks typically need 30 to 45 days minimum. That speed difference matters when you’re competing for properties or need to start rehab quickly.
What costs do I actually pay upfront?
None. We defer fees and interim interest until you sell the property. That includes points, appraisal costs, document preparation, first month’s interest, wire fees, and inspection fees. You’re not paying administrative or underwriting fees because we don’t charge them. You pay exactly what we paid for third party services like appraisals.
Do you lend throughout all of Texas?
We focus on major markets across Texas: Dallas Fort Worth, San Antonio, Austin, and Houston. We don’t typically finance rural projects outside these metropolitan areas. Our local expertise in these markets helps us provide faster decisions and better service.
