Capital Concepts

About Capital Concepts

Capital Concepts is a private money lender based in Houston, TX providing loans in Dallas, Houston, Austin, and San Antonio. They offer buy and hold loans, cash out hard money loans, private commercial loans, and fix-and-flip loans. They issue loans with a maximum LTV of 70%. They primarily provide loans for single family units and multi family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Dallas, Houston, Austin, San Antonio

Licenses: NMLS # 221656

Lending Guidelines for Capital Concepts

Below are the general loan guidelines published on the Capital Concepts 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 Capital Concepts.

Loan Example 1

Graciela takes a fix-and-flip loan from Capital Concepts in order to renovate a house to flip in Dallas, TX. The price of the property is $360,000. The terms of the loan include a 75% loan-to-value (LTV), so she must contribute 25% of the price as cash at closing, which makes the principle loan amount $270,000. The parameters of the note also stipulate a one point origination fee which is to be paid at the closing and a 6 month, interest only note with a 10% rate of interest.

The borrower will need to bring a total of $32,400 upon closing to pay the $90,000 down payment in addition to the $2,700 origination fee. The lender will collect $2,250 in monthly interest from the Graciela. This is computed by taking the total loan value of $270,000, multiplying by the 10% rate of interest, and then dividing that number by 12. If Graciela sells the project for $450,000 after 6 months, she would then make a gross profit of $73,800 after subtracting the original principle of $270,000, the money contributed at closing of $90,000, the origination fee of $2,700, and the aggregate interest payments of $13,500. This amount doesn't account for building costs.

Loan Example 2

Capital Concepts makes a loan to William for a renovation project in Dallas, TX. The deal dictates the following:

a) A $210,000 purchase price, b) a 70% loan to value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 5% origination fee.

If William accomplishes his goal of a $273,000 sales price, the outcome of the project would be the following:

$273,000 sales price
- $147,000 loan principle (70% LTV)
- $63,000 down payment (30% on 70% LTV)
- $7,350 origination fee (5% of the $147,000 principle)
- $7,350 interest payments (6 months x 10% interest)
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= $48,300 total profit (does not include taxes or rehab costs)