Frequently Asked Questions

Q: How are you different then other hard money lenders?
A: We are investors just like you! We have completed more than 1,000 investment property transactions in greater Houston, Texas area since 2007. While other hard money lenders may have understanding of investment real estate, chances are we have done a transaction that involves a property just like the one you are trying to purchase and have much deeper understanding of repairs needed and after repaired value then other hard money lenders. In addition, we are local and have thorough knowledge of greater Houston real estate market. We are here to help you make money and become a long term repeat client.

Q: What is a hard money loan?
A: Hard money loans, also known as private loans, rehab loans, bridge loans and construction loans, are a form of financing available to purchase and repair an investment property. Hard money loans do not conform to conventional underwriting standards and are not typically offered by banks or mortgage brokers. One unique attribute of hard money is that financing is made available for the repair of the property in addition to the purchase cost. Another attribute is that the loan amount is based on the future “after repaired value” of the property versus the “as-is” value. Due to these factors a borrower can access a much higher amount of leverage for a distressed real estate purchase than what would be available through more traditional financing.

Q: Where do you loan hard money?
A: We loan within 2 hours driving distance from Houston, Texas. This is our circle of competence in which we had completed more then 1,000 real estate investment deals since 2007.

Q: How does your hard money application process work?

1. Complete an application.
2. Request an initial After Repair Value (ARV) range on a distressed property to make sure loan value is in line with property and repairs.
3. Begin your Loan Application, including Contract for Purchase and Credit Card Authorization for Application Fee.
4. Provide a detailed Repair Budget. Prefer either contractor quote(s) or a detailed line item budget.
5. Provide access to and visit the property with designated 3rd party appraiser.
6. Receive Appraisal of After Repair Value (ARV).
7. Select Title Company to close loan and provide title insurance.
8. Loan is Approved, including full disclosure of terms and conditions.
9. Sign the Loan Agreement.
10. Seller is paid direct. Rehab budget is now available via ‘draw request’ to pay for work completed. *Loan interest only paid on money drawn.
11. Typically complete all repairs within 60 days.
12. Market and sell your refurbished property.
13. Repay loan.
14. Retain profit.

Q: How long does a hard money loan take to close?
A: Typically, loans can close within 10 days from when the real estate investment purchase contract and rehab budget is received.

Q: What are your requirements to qualify for hard money loan?
A: Most of the underwriting is performed on the asset you are purchasing but some rules of thumb apply such as that you must have at least closing cost plus 6 months’ worth of payments and one third of repair cost available in liquid assets. Our loans are not available to first time homebuyers, and the purchaser can not occupy the homes during the life of the loan. Loans are only made to real estate investors.

Q: How much can I borrow?
A: An appraisal is used to determine the loan amount. The appraisal is based on the scope of work and what the borrower plans to do to rehab the property. The appraiser will assign an after repair value of the home (ARV). In most cases, REI Lending, LLC will loan up to 75% of the after repair value.

Q: Will REI Lending, LLC finance the repairs?
A: Yes, we will reimburse you for repairs in up to three draws as the repairs are completed.

Q: How much cash do I need to bring to closing?
A: This depends on a deal. We lend up to 75% of after repaired value of the property including repairs. If your purchase price of the property is low enough so that sum of purchase price, closing costs and repairs is below 75% of after repaired value you may not need to bring any cash to closing.

Q: What types of properties do you lend on?
A: Primarily single-family homes but will consider all other types of investment properties.

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Close on your real estate deal lighting fast and fund up to 75% of after repaired value with local real estate investment lender who has done it before!
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