Entrust Capital Funding

About Entrust Capital Funding

Entrust Capital Funding is private lender headquartered in El Paso, TX. They offer funding throughout El Paso. Their lending focus is primarily on fix-and-flip hard money loans. Their lending parameters are versatile, including loans with a maximum LTV of 70%, terms between 6 months and 240 months, and rates ranging between 7.99% and 11.99%. They will consider various loan requests but mainly focus on single family homes and multi family.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: El Paso

Lending Guidelines for Entrust Capital Funding

Below are the general loan guidelines published on the Entrust Capital 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 Entrust Capital Funding.

Loan Example 1

Walter takes a fix-and-flip loan from Entrust Capital Funding in order to rehab a condo to resale in El Paso, TX. The sales price of the house is $400,000. The loan to value (LTV) on the loan is 70%. This means that Walter will need to bring 30% of the purchase price to the closing and the principle amount will be $280,000 on the loan. The rate on the loan is 13% for a term of 6 months and the lender requires a three point origination fee at the close. The interest payments are to be paid on a monthly basis and the principle amount will be repaid after the property sells.

The borrower will need to fund a total of $32,400 upon closing to pay the $120,000 down payment plus the $8,400 origination fee. The monthly interest-only payments will then be $3,033 to the lender. If Walter sells the house for $540,000 after 6 months, he would earn a gross profit of $113,400 after deducting the original principle of $280,000, the funds contributed at closing of $120,000, the origination fee of $8,400, and the aggregate interest payments of $18,200. This gross profit does not include rehab costs.

Loan Example 2

Entrust Capital Funding makes a private money loan to Louis for a rehab project in El Paso, TX. The loan dictates the following:

$290,000 purchase price
60% loan to value (LTV)
18 month term
14% rate of interest
5% origination fee

Louis plans to list the house at the end of the term for $377,000. If he achieves this goal, the final numbers would be as follows:

$377,000 sales price
- $174,000 principle (60% LTV)
- $116,000 down payment (40% on 60% LTV)
- $8,700 origination fee (5% of the $174,000 principle amount)
- $36,540 interest payments (18 months x 14% interest)
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= $41,760 total profit (doesn't include taxes or rehab costs)

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