Patterson Investments

About Patterson Investments

Patterson Investments is a family owned Austin-based lender specializing in fix and flip and ground up construction loans in Austin and San Antonio. Our rates and terms are flexible and we can often close in as little as 3 days. We do not charge huge application fees or points on the deal. Give us a call today to discuss your project.

Loan Types Offered: Hard Money Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans, Investment Property Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Church, Land, Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Church, Land

Areas Served: Austin, San Antonio

Lending Guidelines for Patterson Investments

Below are the general loan guidelines published on the Patterson Investments 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 Patterson Investments.

Loan Example 1

Carrie finds a property in Austin, TX to rehab and re-sell. Since she doesn't have enough cash on-hand to acquire the $340,000 house outright, she takes out a fix and flip loan from Patterson Investments. The loan-to-value (LTV) on the loan is 70%. This means that Carrie will need to bring 30% of the purchase price to the closing and the principle will be $238,000 on the deal. The terms of the deal also include a two percent origination fee that will be paid at the closing and a 12 month, interest only note with a 10% rate of interest.

In accordance with the parameters of the loan, Carrie will need to contribute a $6,800 origination fee plus 30% of the purchase price, or $102,000, since there is a 70% LTV. Patterson Investments will collect $1,983 in monthly interest payments from the borrower. This is computed by taking the full note amount of $238,000, multiplying by the 10% rate of interest, and then dividing that number by 12. Assuming Carrie sells the remodeled house for $442,000 at the end of the 12 month term, her total profit (not including renovation costs) would be $71,404. This is computed by taking the sales price ($442,000) and subtracting the principle ($238,000), the origination fee ($6,800), the cash she brought to closing ($102,000), and the total interest payments ($23,796).

Loan Example 2

Ellen locates a property in San Antonio, Texas to renovate and sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Patterson Investments with the following parameters:

a) A $270,000 sales price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 5% origination fee.

Ellen intends to sell the project at the end of the term for $405,000. If she achieves this goal, the outcome would be as follows:

$405,000 sales price
- $189,000 note principle (70% LTV)
- $81,000 down payment (30% on 70% LTV)
- $9,450 origination fee (5% of the $189,000 principle)
- $31,185 interest payments (18 months x 11% interest)
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= $94,365 total profit (does not include taxes or renovation costs)