Frequently Asked Questions About Hard Money Lenders Austin

Why would someone pay such a high interest rate?

Clients borrow from Stallion Funding when they have the opportunity to profit from real estate investment, but bank financing is unavailable or impractical. The borrower may have a very short time table to purchase the property, may have credit challenges, or the property may be outside of a bank's scope of lending. In any case, our fast turnaround time and excellent service allow the borrower to quickly secure the subject property and initiate their profit strategy.

How is my investment secured?

All Stallion Funding investments are secured by first lien deeds of trust. The name of the investor(s) or investing entity will be present on all legal documents filed with the county. Your investment will not be pooled across multiple properties, instead you will have a specific investment amount in each loan in which you choose to participate. The title company involved in the transaction will record all legal documents at the time of closing and will handle the distribution of funds.

How are these loans structured?

All loans are structured as 12 month interest only loans with a balloon payment due at maturity. Payments are due from the borrower monthly. The borrower has the right to repay the loan completely before the balloon is due, however he or she must pay at least four months of interest.

What fees does Stallion Funding charge?

There are no up-front fees or charges when investing with Stallion Funding. Stallion Funding does charge a servicing fee during the loan term that is paid from interest received from the borrower. Even with the fee, the investor still nets a competitive annual return on their investment.

How do I receive payments?

You will begin receiving monthly payments approximately one month after your investment. Like any mortgage loan, you are paid interested after it is accrued. You can expect to receive your monthly payment from Stallion Funding between the 15th and the 20th of each month. We also offer direct deposit.

What is the minimum investment to get started?

We currently require a minimum investment of $25,000 to begin investing with Stallion Funding. We recommend that you only invest with funds that will not be needed over the course of the loan term (12 months).

Can I use my IRA, 401K, or other qualified funds to invest?

With the right custodian managing your IRA, 401K, or pension, you are able to use qualified funds to invest with Stallion Funding. We work closely with several custodians that can accommodate your specific needs.

Is it possible to withdraw my investment once I fund a loan?

In the event that you need access to your funds, we will line up another investor to purchase your position at par value. However, this process can take time and we request a minimum of 30 days to complete the process.

How does Stallion Funding manage the risks involved?

We limit our loan to value ratio to 65% on most property types. By doing so, there is at least a 35% equity cushion with every project we fund. Stallion Funding uses professional independent appraisers to determine the value of most property types. We also maintain the property insurance for every project to make sure the asset is covered at all times.

What happens if the borrower stops making payments?

Stallion Funding will initiate our default process and involve our legal counsel on behalf of the investors. We will have a demand letter sent to the borrower and will follow with foreclosure proceedings. If it becomes necessary to foreclose, we will handle the entire process including the subsequent sale of the project.

Visit the Investor Program Outline to learn more about investing with Stallion Funding's Hard Money Lenders Austin.
Please contact us to request an Investment Package or learn more about other Stallion Funding investment opportunities.

13187 Research Blvd Austin, TX $160,000 2312 S. 4th Street, Austin, TX $283,000 Raw Land Arion Pkwy San Antonio $750,000 3710 Pleasantville Road, Midlothian $385,000 136 Stable Oaks, Liberty Hill, TX $185,000