Alternatives to Hard Money Lenders

[Tony Valdivia]

I have currently been using hard money lenders for most of my deals, but am looking for a cheaper source of funds.  I operate in the Houston area (with properties in Katy and Richmond) and in the San Antonio area.  The hard money lenders I am currently working with are charging 12% with 2 points.  I did find a San Antonio bank that has much better rates, but they need 30 days to close and sometimes I need to close quicker.

In my business model, I buy with a hard money loan, do the rehab and then rent it out while refinancing with a conventional loan.  Occasionally, I might flip a property instead of rent it.

Any advice on alternative sources of funding and how to find them would be appreciated.