Park Place Funding

About Park Place Funding

Park Place Funding is private money lender based in Austin, TX. They offer funding throughout Dallas, Austin, and San Antonio. They offer loans for many different needs and situations, including rental property loans and fix-and-flip hard money loans. Their loan parameters are flexible, including terms up to 1 year, loans with a maximum LTV of 75%, and rates ranging between 10% and 14%. They primarily provide loans on single family residences and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Dallas, Austin, San Antonio

Lending Guidelines for Park Place Funding

Below are the general loan guidelines published on the Park Place 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 Park Place Funding.

Loan Example 1

Graciela closes on a $150,000 renovation project in Dallas, TX, using a fix-and-flip loan from Park Place Funding. The loan to value (LTV) on the note is 65%. This means that Graciela will bring 35% of the sales price to the closing and the principle will be $97,500 on the loan. The parameters of the loan dictate a 13% note for 12 months. They also require a 1 point origination fee, that will also need to be paid at closing.

Accordingly, Graciela will have to contribute a $52,500 down payment plus pay a $975 origination fee. After the deal is executed and Graciela takes on the property, she will have to begin making payments each month of $1,056 to Park Place Funding ($97,500 principle x 13% / 12 months). At the end of the loan, she sells the rehabed property for $187,500. After deducting the $12,675 in interest payments ($1,056 multiplied by 12 months), the $975 origination fee, the $97,500 principle on the loan, and the $52,500 she brought to the closing, she will earn a gross profit of $23,850 ($187,500 price minus $163,650 in total costs). This amount would then be reduced by any rehab costs paid out of pocket.

Loan Example 2

Andrew finds a duplex in Dallas, TX to rehab and sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Park Place Funding with the following parameters:

a) A $200,000 sales price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 3% origination fee.

Andrew intends to list the property when the note expires for $270,000. If he achieves this goal, the deal numbers will be as follows:

$270,000 sales price
- $140,000 loan principle (70% LTV)
- $60,000 cash paid at closing (30% on 70% LTV)
- $4,200 origination fee (3% of the $140,000 principle)
- $18,900 interest payments (18 months x 9% interest)
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= $46,900 gross profit (doesn't include taxes or renovation costs)