Lone Star Commercial Lending

About Lone Star Commercial Lending

Lone Star Commercial Lending is private lender based in Albuquerque, NM. They provide loans in Albuquerque and Rio Rancho. They offer lending solutions for a variety of needs and situations, including fix-and-flip hard money loans and commercial loans. They issue loans with a maximum LTV of 70%, terms up to 13 months, and rates ranging between 9.99% and 12%. They offer loans on many property types, including single family homes, multi-family, apartment buildings, offices, retail units, mixed use spaces, and medical offices.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Medical

Areas Served: Albuquerque, Rio Rancho

Lending Guidelines for Lone Star Commercial Lending

Below are the general loan guidelines published on the Lone Star Commercial Lending 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 Lone Star Commercial Lending.

Loan Example 1

Katharine takes a private money loan from Lone Star Commercial Lending in order to renovate a townhouse to flip in Albuquerque, NM. The sales price of the house is $200,000. The loan-to-value (LTV) on the deal is 85%. This means Katharine will need to bring 15% of the purchase price to closing and the principle will be $170,000 on the loan. The loan also includes the following features: 1) a 12 month length, 2) a 12% interest only note, and 3) a five point origination charge.

Katharine will have to contribute $30,000 to closing (15% on the 85% loan-to-value), plus she will pay the $8,500 origination fee. she will then pay $1,700 monthly to the lender. If Katharine sells the house for $260,000 after 12 months, she would realize a gross profit of $31,100 after deducting the original principle of $170,000, the cash paid at the close of $30,000, the origination points of $8,500, and the aggregate interest payments of $20,400. This amount does not include building costs.

Loan Example 2

Lone Star Commercial Lending issues a private money loan to Jody for a remodeling project in Albuquerque, NM. The deal includes the following:

a) A $210,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 11% interest rate, and e) a 4% origination fee.

After the renovation project is complete, if Jody sells the property for $315,000, the numbers would be as follows:

$315,000 sales price
- $157,500 principle on note (75% LTV)
- $52,500 cash paid at closing (25% on 75% LTV)
- $6,300 origination fee (4% of the $157,500 principle amount)
- $8,663 total interest paid (6 months x 11% interest)
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= $90,038 total profit (does not include taxes or rehab costs)

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