Hard money lender in Austin, Texas
Fix and flip, construction, bridge and DSCR rental loans across Austin and the surrounding counties, funded from our own capital. Austin rewards discipline on the exit more than any other Texas market, and we underwrite it that way.
What we fund here
Austin files cluster in three places: renovation of older stock in the central and eastern neighborhoods, infill construction on lots that can support more density than what is standing, and rental acquisitions in the suburban ring where the yield math still works.
The interesting structural feature of this market is that the surrounding counties often behave better for an investor than the city core. Williamson and Hays county municipalities generally permit faster, and the basis is lower, which leaves more room between the purchase price and the finished value.
The thing that decides an Austin file
Exit discipline. Austin has more price variance than Houston, Dallas or San Antonio, which means the gap between an optimistic after repair value and a defensible one is wider here, and the consequence of getting it wrong is larger.
Practically, that means three habits. Use closed sales, not pending ones, and look at how long they took to close. Underwrite the rental exit as well as the sale exit, so that a slow market is a change of plan rather than a crisis. And keep the schedule honest, because permitting and inspection timelines in the city are the most common reason an Austin project runs past its term.
Typical Austin files
- Full renovation of a 1950s or 1960s house in Windsor Park, Crestview or St. Johns
- Teardown and new construction on an east side lot, single home or two units
- Renovation and addition in South Austin where the lot supports square footage
- Rental acquisition and DSCR refinance in Round Rock, Kyle, Hutto, Manor or Elgin
- Bridge on small multifamily near campus or in the eastern corridor
- Land bridge carrying a lot through permitting, converting to construction on issuance
Programs available in Austin
| Program | Loan size | Max leverage | Term |
|---|---|---|---|
| Fix and flip | $100K to $3MM | 90% purchase 100% rehab 75% of ARV | 12 to 18 mo |
| Ground up construction | $250K to $5MM | 85% of cost 70% of finished value | 12 to 24 mo |
| Bridge | $150K to $5MM | 75% purchase 70% cash out | 12 to 24 mo |
| DSCR rental | $100K to $3MM | 80% purchase 75% cash out | 30 yr |
Illustrative ranges for well structured transactions, not an offer or a commitment to lend. Business purpose loans only.
Commercial financing in Austin
Everything above is our own money on residential and small balance property. For stabilized and income producing commercial real estate in Austin, apartments over five units, retail centers, office, industrial and flex, self storage, hotels and owner occupied buildings, we act as a broker and shop the file nationally. That side of the business works in all 50 states. See commercial real estate loans, or go straight to multifamily or SBA 504 and 7(a).
Lending in Austin
Why is Austin underwritten more conservatively?
Because the price curve here has been steeper in both directions than the rest of Texas. A market that can move ten percent in a year can move ten percent the other way, and a flip is a bet on the finished price six to twelve months out. We lend against closed comparable sales rather than a trend line, and on Austin files we pay particular attention to how quickly recent comps have been closing. That is not pessimism, it is the same 75% of ARV test applied to a market with more variance in it.
What do impervious cover limits do to a project?
They cap how much of a lot can be covered by structure and paving, and in parts of Austin they are the real constraint on what you can build rather than setbacks or square footage. A plan that assumes a footprint the lot cannot legally support is a plan that gets redrawn. On construction files we want the site plan and the cover calculation, not just the elevations.
What about heritage trees?
Austin’s tree ordinance protects trees above a certain diameter and it genuinely reshapes projects. A heritage tree in the middle of a buildable area can move a foundation, cost a variance process, or end a plan. If the lot has mature trees, get the survey with the tree locations and calipers to us early. It is a normal thing to work around and a bad thing to discover at framing.
Do you finance short term rentals in Austin?
On the DSCR side, sometimes, and always with the local rules in view. Austin regulates short term rentals actively and the licensing regime has changed more than once. Where a short term rental history exists and the property is properly licensed, twelve months of platform data is the strongest support. Where it does not, we generally want the deal to work on long term market rent as a floor, so that a regulatory change is an inconvenience rather than a default.
Is the surrounding area easier than the city?
Often, yes, on the permitting side. Round Rock, Georgetown, Kyle, Buda, Leander, Manor and Bastrop are all active investor markets with generally faster municipal processes than the City of Austin. Underwriting attention shifts to comp support instead, because the outer ring has more new construction competing with renovated resale, and that competition sets the ceiling on your finished price.
How long do Austin permits take?
Plan for longer than you want, and build it into the term rather than the hope. We size construction and heavy rehab loans with a schedule that survives a slow permit, and we would rather write an 18 month term that finishes comfortably than a 12 month term that needs two extensions. If you are pre permit, finance the land with a bridge loan and convert when the permits issue.
Every deal gets a real answer
Tell us the property, the plan and the number you need. A credit officer reads it and tells you what it will support.
- Texas hard money. A term sheet from the people who fund the loan.
- Commercial, all 50 states. Quotes from the desks that cover your asset.
- Outside the box? A straight reason, and usually a name that does fund it.