Bridge, Rental and Build
Financing Rental Property With Hard Money
Short-term capital is a timing tool. This guide covers one of the timings.
Bridge, Rental and Build
The short version, then the substance.
Key Takeaways
- The acquisition problem it solves
- The hold-period math
- The handoff
The acquisition problem it solves. The best rental buys are the ones banks decline: vacant, rough, or priced for speed. Hard money buys the discount, funds the turn, and gets the property to the condition long-term lenders require.
The hold-period math. Expect 6 to 12 months on the short-term note while you stabilize: renovation, lease-up, and seasoning. The interest cost during the hold is the price of acquiring below market, and the equity created usually dwarfs it.
The handoff. The exit is a refinance into conventional or DSCR debt with the tenant paying and the new appraisal reflecting your work. Line up the takeout lender early, know their seasoning rules, and the handoff becomes routine.
The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.
Questions
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