Rental Property Loans
Priority Investor Loans, LLC (PIL) is a trusted Houston hard money lender and one of the most respected hard money lenders in the industry. We provide simple financing options to real estate investors so you can quickly secure the property that you have identified.
What is a Hard Money Loan?
The amount of the hard money loan is often based on the After-Repair-Value (ARV) of the property in question. A licensed appraiser takes the proposed repairs into consideration and estimates the value of the property subject to a complete renovation, hence the term “ARV”.
A common term in the industry, a “temp-to-perm” loan combines the temporary loan (i.e. hard money loan) which covers the purchase price of the property, and the permanent loan, which is a conventional-type loan at a lower interest rate that amortizes over 20 to 30 years. Because of the rapid pace of the real estate market, hard money lending is a great option that allows investors to quickly obtain funds and get the edge over other prospective buyers. Hard money loans also allow the borrower to immediately begin renovations once the deal is closed by providing repair capital that is held in escrow. Upon completion of the renovations, your temporary hard money loan will be immediately converted into a permanent loan which will allow for maximum cash-flow as you hold the property for many years.