Southwest Guaranty

About Southwest Guaranty

Southwest Guaranty is private money lender based in Houston, TX. They offer loans throughout Texas. They provide fix-and-flip loans, private refinancing, commercial loans, buy and hold loans, and bridge loans. They offer loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 65%, rates ranging between 10% and 12%, and terms between 1 year and 5 years. They make loans on the following property types: single family residences, multi family residences, apartment buildings, office units, retail units, hotels/motels, storage buildings, senior living facilities, mixed use, raw land, churches, warehouse buildings, and industrial facilities.

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

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

Areas Served: TX

Lending Guidelines for Southwest Guaranty

Below are the general loan guidelines published on the Southwest Guaranty 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 Southwest Guaranty.

Loan Example 1

Southwest Guaranty makes a hard money loan to Claude for a renovation project in Houston, TX, on a house that costs $230,000. Because the lender agrees to a 50% loan-to-value, Claude will have to put 50% down and the principle amount of the note will be $115,000. The terms of the deal dictate a 10% note for 6 months. They also stipulate a 2 point origination fee, which will also need to be paid when the property closes.

Claude will have to contribute $115,000 at the closing (50% on the 50% loan-to-value), plus he will need to pay the $2,300 origination fee. After the deal is closed and Claude takes the project, he will need to begin making monthly payments of $958 to Southwest Guaranty ($115,000 principle x 10% / 12 months). If he sells the renovated house for $345,000 at the end of the 6 month term, his gross profit (not accounting for remodeling costs) would be $106,950. This is computed by taking the purchase price ($345,000) and subtracting the principle ($115,000), the origination fee ($2,300), the funds he brought to closing ($115,000), and the total interest payments ($5,750).

Loan Example 2

Terrance is a an investor in Houston, TX. He purchases a run-down property for a rehab project and takes out a fix and flip loan from Southwest Guaranty with the following paramters:

$380,000 purchase price
60% loan-to-value (LTV)
6 month term
10% interest rate
4% origination fee

Assuming a $551,000 sales price at the end of the 6 month term, the final numbers for the deal would look like the following:

$551,000 sales price
- $228,000 principle on note (60% LTV)
- $152,000 down payment (40% on 60% LTV)
- $9,120 origination points (4% of the $228,000 principle)
- $11,400 interest payments (6 months x 10% interest)
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= $150,480 total profit (does not include taxes or renovation costs)

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