Hard Money Loans in Katy, Texas
When it comes to financing a real estate investment or development project, hard money loans are becoming an increasingly popular option in Katy, Texas. For potential borrowers and lenders alike, it’s important to understand exactly what hard money loans are, how they work, and when they make the most sense.

What is a Hard Money Loan?
A hard money loan is a loan secured by real estate. It’s often used by investors who don’t have access to traditional bank loans. The lender will typically provide the borrower with a single lump sum of capital at the beginning of the loan and will require repayment of principal and interest at the end of the term. In some cases, lenders may also require that borrowers make periodic payments throughout the loan term. The terms of these payments vary based on the lender and can be negotiated before signing any agreement.
Benefits of Hard Money Loans
One of the main benefits of hard money loans is that they tend to close faster than traditional bank loans since there’s less paperwork involved. For investors looking for quick financing for their projects, this can be incredibly helpful since time is of the essence when it comes to making deals happen. Additionally, these types of loans tend to have fewer restrictions on what type of property can be financed and have lower credit score requirements than traditional bank loans. This makes them attractive options for investors who may not qualify for other types of financing.
When Should You Consider Taking Out a Hard Money Loan?
Hard money loans should generally only be considered if you need access to capital quickly or if you are unable to obtain traditional financing due to your credit score or other factors. Additionally, these types of loans should only be taken out if you have confidence that you will be able to repay them when due since late payments can lead to additional fees or even foreclosure on your property if you are unable to catch up on missed payments.
In conclusion, hard money loans can be extremely beneficial tools for investors in Katy, Texas who need quick access to capital in order to move forward with their projects quickly. That being said, they should only be considered after careful consideration and after understanding all associated risks involved with taking out such a loan. At our company we understand how important it is for our clients to know all aspects involved in taking out a hard money loan so we provide detailed information about our services so clients can make informed decisions about their finances before signing any agreements with us!
Hard Money Lenders in Katy, Texas
FlipCo Financial is funding real estate projects in Katy and the Greater Houston Area. With 5 stars on google, our team is providing the best hard money loan service in the city and we are ready to work with you. Contact our team of experienced real estate investors to get your free quote on your loan.
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FAQ's
A hard money loan is a type of short-term financing secured by the property’s value rather than the borrower’s creditworthiness. FlipCo Financial specializes in hard money loans for real estate investors, offering quick access to capital for property purchases and rehab. These loans are ideal for fix-and-flip projects, BRRRR strategy investments, and other short-term needs.
As a true asset-based lender, FlipCo Financial focuses on the property’s potential rather than your credit score. We provide flexible terms, faster funding, and a borrower-friendly approach, removing common pain points like lengthy underwriting processes, excessive due diligence requirements, and excessive deal delays.
Loan amounts are based on the property’s projected After Repair Value (ARV). FlipCo will lend up to 75% ARV. We follow industry standard underwriting guidelines, ensuring comparable properties (comps) are similar in size, type, and location. Our approach helps investors maximize their projects’ potential while managing risk.
Yes! As a true asset-based lender, we prioritize the asset over the borrower’s credit. Because of this, we do not have a credit score minimum or require a credit check as part of the application process. Although credit does not impact funding qualification with FlipCo, it can impact a borrower’s ability to get long-term financing if the exit strategy is to hold the property as a rental.
Yes! While experience can strengthen your application, we work with first-time investors and provide guidance throughout the process. Budgets larger than $60,000 will require additional review if a first-time investor.
FlipCo’s streamlined process allows us to fund loans within a matter of days. We move as fast as you do! Once your application is complete and approved, we work quickly to ensure you can close your deal without delay.
To apply, you’ll need to complete a loan application, submit your project budget in the FlipCo format, property photos, and purchase contract. If you do not choose to finance your rehab with FlipCo, we will still need to see your proposed SOW to understand the final product for accurate valuation. Our team reviews this information to ensure the project aligns with our lending criteria. Upon Underwriting Approval, final due diligence documents include entity documents, EOI, and Proof of Funds.
Borrowers can easily submit property photos through FlipCo’s online application portal or via email to their assigned account manager. We require clear photos of the property’s exterior, interior, and any areas requiring repair or renovation to support the underwriting process.
For property inspections, FlipCo accepts formal inspection reports from licensed inspectors, appraisers, or contractors. In some cases, detailed walkthrough videos or virtual inspections may also be accepted, provided they meet our underwriting requirements. Our team will guide you on what’s needed for your specific loan application.
Apart from the subject property, FlipCo requires the borrowing entity be registered and operating within the US as well as in good standing. Borrowers must provide proof of current liquid funds to meet calculated Minimum Reserves; this requires providing most recent bank statement and screenshot of current bank balance within 10 business days of closing. No active or pending judgements, liens, foreclosures, or bankruptcies personally or associated with a business entity.
FlipCo lends on residential, single-family homes and multi-family units. Property types include single family residence, duplex, triplex, quad. The property must be for investment purposes and cannot be owner-occupied and/or the borrower’s primary residence. Manufactured homes and shared wall units such as townhouses and condos are excluded.
FlipCo lends in several states and recently expanded to Ohio cities. Our states include Arkansas, Florida, Georgia, Indiana, Kansas, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia. Check our website for a detailed list of states where we operate.
FlipCo can lend up to $1,000,000 per unit. FlipCo does not have a loan minimum. We do have an origination minimum of $2,500.
How does FlipCo handle draw requests for rehab projects?
FlipCo issues reimbursements through draw requests once work is completed and paid. While there’s no required timeline for draw submissions, we encourage borrowers to submit within the first 30 days to keep their projects on track. To make a draw request, visit: FlipCo Rehab Draw Request – FlipCo Financial
Absolutely! FlipCo provides guidance to make the transition seamless with our in-house DSCR specialists!
FlipCo will only charge interest of funds drawn, not total committed. Your FlipCo quote will provide estimates on your minimum and maximum fully drawn interest payment for your review in assessing your potential carrying costs.
FlipCo offers short-term financing for 3- and 6-month terms. Extensions are available. Additional fees may apply.