Construction Financial Services

About Construction Financial Services

Based in Spring Branch, TX, Construction Financial Services is a private money lender offering loans throughout these areas: Austin, Corpus Christi, Dallas, Del Rio, Floresville, Fort Worth, Houston, Lubbock, San Antonio, Brownsville, and Waco. They provide fix-and-flip hard money loans, buy and hold loans, and builder loans. They will consider varying lending scenarios but primarily focus on single family units and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Austin, Corpus Christi, Dallas, Del Rio, Floresville, Fort Worth, Houston, Lubbock, San Antonio, Brownsville, Waco

Licenses: NMLS # 866625

Lending Guidelines for Construction Financial Services

Below are the general loan guidelines published on the Construction Financial Services 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 Construction Financial Services.

Loan Example 1

Jimmie takes a private money loan from Construction Financial Services in order to rehab a property to resale in Austin, TX. The list price of the property is $280,000. The lender agrees to make a note with a 80% loan-to-value (LTV) so they are willing to extend $224,000 on the project. The note is interest-only, paid monthly, and is for 18 months at 13% interest with 2 points to be paid when the deal closes.

In addition to paying the $4,480 origination fee, Jimmie will also have to fund $56,000 of the purchase with her own funds, or 20% of the purchase price. Construction Financial Services will collect $2,427 in monthly interest from the borrower. This is calculated by taking the total note value of $224,000, multiplying by the 13% interest rate, and then dividing that number by 12. If Jimmie accomplishes her goal of a $336,000 sales price when the loan expires, she would make a total profit of $7,840 after re-paying the principle and subtracting the money she contributed at closing, the origination fee, and the monthly interest payments.

Loan Example 2

Kara locates a property in Austin, TX to rehab and resell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Construction Financial Services with the following parameters:

a) A $360,000 sales price, b) a 50% loan-to-value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 2% origination fee.

Assuming a $432,000 sales price after the 6 month term, the numbers for the project would look like this:

$432,000 sales price
- $180,000 principle (50% LTV)
- $180,000 down payment (50% on 50% LTV)
- $3,600 origination fee (2% of the $180,000 principle)
- $11,700 total interest paid (6 months x 13% interest)
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= $56,700 total profit (doesn't include taxes or rehab costs)

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