Distinct Funding Solutions

About Distinct Funding Solutions

Based in Dallas, TX, Distinct Funding Solutions is a hard money lender providing loans throughout Dallas and Fort Worth. They provide lending solutions for a variety of situations, including loans for investments properties and fix and flip loans. Their loan parameters are flexible, including loans with a maximum LTV of 70%. The focus of their loans is for single family units.

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

Property Types Covered: Single Family

Areas Served: Dallas, Fort Worth

Licenses: NMLS License #265116

Lending Guidelines for Distinct Funding Solutions

Below are the general loan guidelines published on the Distinct Funding Solutions 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 Distinct Funding Solutions.

Loan Example 1

Donald is a real estate investor in Dallas, TX. He locates a run-down property for sale and decides to renovate it and sell it for a profit. The house costs $300,000 but he doesn't have the full amount so he takes out a private money loan with Distinct Funding Solutions. The terms of the deal include a 70% loan-to-value (LTV), so he must contribute 30% of the price as cash at closing, which makes the principle loan amount $210,000. The deal also includes the following features: 1) a 18 month term, 2) a 9% interest only note, and 3) a one point origination fee.

In accordance with the parameters of the deal, Donald will be required to contribute a $2,100 origination fee in addition to 30% of the sales price, or $90,000, since there is a 70% LTV. After the deal is executed and Donald takes over the property, he will begin making payments each month of $1,575 to Distinct Funding Solutions ($210,000 principle x 9% / 12 months). If Donald sells the renovated house for $360,000 at the end of the 18 month term, his gross profit (not including renovation expenses) would be $29,550. This is calculated by taking the purchase price ($360,000) and subtracting the principle ($210,000), the origination fee ($2,100), the money he brought to closing ($90,000), and the total interest payments ($28,350).

Loan Example 2

Johnnie finds a house in Dallas, TX to rehab and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Distinct Funding Solutions with the following parameters:

a) A $150,000 sales price, b) a 65% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 2% origination fee.

If Johnnie succeeds in his goal of a $225,000 sales price, the final numbers of the deal would be the following:

$225,000 sales price
- $97,500 loan principle (65% LTV)
- $52,500 down payment (35% on 65% LTV)
- $1,950 origination fee (2% of the $97,500 principle)
- $5,850 interest payments (6 months x 12% interest)
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= $67,200 total profit (does not include taxes or rehab costs)

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