Relative Lending

About Relative Lending

Relative Lending is a Houston, TX based private lender who provides loans throughout Houston and Austin. They offer lending solutions for many different scenarios, including short term fix and flip loans, long term rental property loans, and hard money bridge loans. Their loan parameters are flexible, including rates from 13%, terms between 6 months and 12 months, and loan amounts ranging from $50,000 to $2,000,000 with a maximum LTV of 90%. They are able to lend money to any borrower based on the property value and do not require a minimum credit rating. They primarily offer funding for single family homes and multi family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Houston, Austin

Lending Guidelines for Relative Lending

Below are the general loan guidelines published on the Relative 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 Relative Lending.

Loan Example 1

Steve is an investor in Houston, TX. He finds a run-down property and decides to renovate it and flip it for a profit. The property has a cost of $190,000 but he does not have the full amount so he obtains a private money loan with Relative Lending. The borrower will need to bring 25% of the purchase price in cash to the closing based on a 75% loan to value stipulated by the lender. This makes the loan principle from Relative Lending $142,500. The note is interest-only, paid monthly, and is for 6 months at 8% interest with 3 origination points paid when the deal closes.

Steve must bring a total of $32,400 up front to pay the $47,500 down payment plus the $4,275 origination fee. he will then pay $950 per month to the lender. Steve's plan is to finish the rehab within the 6 months and resell it for $256,500. If he succeeds he will collect a profit of $56,525 ($256,500 sales price - $142,500 principle - $47,500 funds brough to closing - $4,275 origination points - $5,700 in total interest paid.

Loan Example 2

Relative Lending issues a loan to Johanna for a rehab project in Houston, TX. The loan includes the following:

$360,000 purchase price
50% loan-to-value (LTV)
18 month term
13% rate of interest
3% origination fee

Johanna intends to sell the property when the note expires for $522,000. If she succeeds, the outcome will be as follows:

$522,000 sales price
- $180,000 note principle (50% LTV)
- $180,000 down payment (50% on 50% LTV)
- $5,400 origination points (3% of the $180,000 principle amount)
- $35,100 interest payments (18 months x 13% interest)
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= $121,500 total profit (doesn't include taxes or renovation costs)

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