Texas hard money is asset-based bridge capital: decisions hinge on the deal and the exit, not on W-2 income. From Houston to DFW (Dallas–Fort Worth) to San Antonio, it funds the deals that need to close before a bank could even order an appraisal.
When Texas deals need hard money
| Deal type | Why speed matters |
|---|---|
| Courthouse auction in Houston | Proof of funds and 7–14 day close beat financed buyers |
| Non-warrantable or distressed collateral | Asset-based decision when agencies decline |
| BRRRR acquisition + rehab start | Bridge to Texas DSCR after lease-up |
| Probate or estate sale | Certainty of capital when title is messy |
| Gap between purchase and permanent debt | Short-term bridge until refi or resale |
What Texas investors use hard money for
- Bridge between purchase and permanent financing or sale
- BRRRR starts — acquire and rehab, then exit to Texas DSCR
- Distressed / non-warrantable assets a conventional lender will not touch
- Auction and trustee-sale buys — close on the courthouse timeline, not a 45-day bank clock
Why speed matters here: Texas foreclosure is non-judicial — power-of-sale foreclosure on the first Tuesday of the month is among the fastest in the U.S. Cash-like certainty wins these deals against slower conventional offers.
Texas ARV bands and leverage caps
Investor ARV on DFW sold comps commonly runs $195,000 – $325,000 with $24,000 – $62,000 rehab scopes. Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
No state income tax strengthens after-tax returns on Texas hold and flip exits. Property tax at ~1.68% (among the highest effective rates (1.8%–2.4% in many counties); model at post-close assessed value) flows into carry on every month you hold bridge capital.
Texas hard money terms (2026)
| Term | Texas range |
|---|---|
| Scope risk | Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors |
| Leverage | Up to ~90% of purchase + rehab, capped to ARV |
| Rate | Interest-only 8.99%–13.5% + points |
| Term | 6–18 months |
| Close | As fast as 7–14 days |
| Basis | Asset-based; $285,000 – $420,000 typical ARV |
Texas metros we fund
| Metro | Typical basis | Rent band | On-the-ground notes |
|---|---|---|---|
| Houston | $195K–$320K | $1,650–$2,350 | Harris County flood-zone diligence on AE blocks |
| DFW (Dallas–Fort Worth) | $245K–$385K | $1,850–$2,650 | Collin/Denton reassessment after close |
| San Antonio | $185K–$275K | $1,550–$2,100 | strong yield-on-cost; Bexar tax ~2%+ |
Texas has no state income tax, which strengthens after-tax returns on the eventual hold or flip exit.
Diligence before you fund in Texas
Underwrite local risk honestly in Texas:
- Harris County (Houston) flood zones and mandatory flood insurance
- Foundation movement in clay soils
- Hail in North Texas
What we need to issue a Texas term sheet
- Proof of funds for down payment and reserves
- Purchase contract or auction confirmation
- Comps or a desktop valuation toward ARV
- Scope of work and rehab budget
- Entity documents (LLC operating agreement, EIN) for vesting
Bring those and a Texas file can move to term sheet quickly — the asset and the exit do the talking.
Recent Texas deal
DFW heavy rehab funded at 95% with all fees deferred to payoff. The pattern repeats: speed on acquisition, a clean scope, and a defined exit.
BRRRR pathway: hard money → DSCR in Texas
The compounding play in Texas is not the flip check — it is recycling capital. Acquire distressed stock in Houston with hard money, rehab on draws, place a tenant at market rent, then exit to Texas DSCR when the ratio clears at target LTV.
DFW auction timelines reward sponsors who can close in days, then pivot to Texas DSCR once rent is documented.
Define the exit before you borrow
Hard money is a bridge in DFW, not a destination. Underwrite one of two exits before you draw:
- DFW resale — fix and flip Texas when spread clears
- DFW hold — Texas DSCR on executed lease and investor tax
Texas TREC advertising rules and homestead exemptions do not apply to business-purpose investor loans.
When hard money is the wrong tool in DFW
- Stabilized DFW rental with executed leases — use DSCR Texas
- Owner-occupied strategy — business-purpose bridge does not apply
- No credible exit — hard money is a bridge; underwrite the resale or refinance exit before you borrow
Texas hard money FAQ
What does Texas hard money cover?
Business-purpose acquisition and rehab on DFW SFR and small multifamily — sized to $195,000 – $325,000 sold comps, not listing aspirational pricing.
What diligence is Texas-specific?
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
What is the typical Texas exit?
Resale via fix and flip DFW or stabilize into Texas DSCR when stabilized market rent is reflected in the rent roll.
Texas bridge acquisition checklist
Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
Size Texas bridge exposure to $195,000 – $325,000 sold-comp discipline on DFW, Houston exurban, and San Antonio acquisitions. Scope rehab to $24,000 – $62,000 bands on qualified files; front-load mechanical and rough-in draws so inspections are not wasted on cosmetic passes. Permanent exit: Texas DSCR.
Texas hard money bridge gates — DFW (Dallas–Fort Worth) acquisition (2026)
- Hail and wind on roof-forward scopes — separate Houston flood from DFW hail corridors.
- Bridge 8.99%–13.5% IO on $285,000 – $420,000 sold-comp discipline in DFW (Dallas–Fort Worth) — Collin/Denton reassessment after close.
- $35,000 – $95,000 rehab bands — front-load mechanical and rough-in draws before cosmetic inspection passes.
DFW (Dallas–Fort Worth) acquisition · 8.99%–13.5% IO · $35,000 – $95,000 draw bands · Houston discipline · Submit scenario · (833) 264-7776.
Get Your Texas Hard Money Quote · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.