Austin Private Funding

About Austin Private Funding

Austin Private Funding is a hard money lender based in Austin, TX providing funding throughout Austin. They offer fix-and-flip loans, commercial hard money loans, and short term loans. They offer terms between 1 month and 1 year, rates ranging between 12% and 15%, and loans with a maximum LTV of 70%. They will make loans on all the following types of properties: single family units, multi family residences, office units, retail storefronts, and industrial facilities.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Office, Retail, Industrial

Areas Served: Austin

Lending Guidelines for Austin Private Funding

Below are the general loan guidelines published on the Austin Private Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Austin Private Funding.

Loan Example 1

Wesley closes on a $240,000 renovation project in Austin, TX, using a fix and flip loan from Austin Private Funding. The terms of the loan include a 70% loan-to-value (LTV), so he must bring 30% of the price as cash to closing, making the principle note amount $168,000. The loan also has the following features: 1) a 6 month term, 2) a 13% interest-only note, and 3) a one point origination charge.

In addition to paying the $1,680 origination fee, Wesley will also fund $72,000 of the purchase with his own money, or 30% of the sales price. After the loan is executed and Wesley takes the property, he will have to begin making payments each month of $1,820 to Austin Private Funding ($168,000 principle x 13% / 12 months). If Wesley sells the house for $336,000 after 6 months, he would then realize a total profit of $83,400 after subtracting the principle amount of $168,000, the cash paid at closing of $72,000, the origination points of $1,680, and the aggregate interest payments of $10,920. This gross profit does not account for rehab costs.

Loan Example 2

Austin Private Funding makes a private money loan to James for a rehab project in Austin, TX. The loan includes the following:

a) A $220,000 purchase price, b) a 85% loan to value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 2% origination fee.

James plans to list the project when the note expires for $286,000. If he accomplishes his goal, the final numbers would be the following:

$286,000 sales price
- $187,000 principle (85% LTV)
- $33,000 cash paid at closing (15% on 85% LTV)
- $3,740 origination fee (2% of the $187,000 principle)
- $28,050 interest payments (18 months x 10% interest)
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= $34,210 total profit (does not include taxes or renovation costs)

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