Sterling Investor Capital

About Sterling Investor Capital

Sterling Investor Capital is a Houston, TX based private money lender providing funding in Texas. They offer fix and flip loans, long term rental property loans, and commercial loans. They issue terms between 1 year and 3 years, rates ranging between 9% and 12%, and loans with a maximum LTV of 65%. They lend funds to all borrowers based on the value of the property and not on a minimum FICO score. They offer loans on the following types of properties: single family, multi-family, apartments, office buildings, retail spaces, and mixed use spaces.

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

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

Areas Served: TX

Lending Guidelines for Sterling Investor Capital

Below are the general loan guidelines published on the Sterling Investor Capital 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 Sterling Investor Capital.

Loan Example 1

Sara is a house flipper in Houston, TX. She locates an older property and wants to rehab it and sell it for a profit. The house has a cost of $270,000 but she doesn't have the full amount so she takes a fix-and-flip loan with Sterling Investor Capital. The lender agrees to write a loan with a 60% loan to value (LTV) so they are willing to extend $162,000 on the project. The note is interest only, with monthly payments, and is for 12 months at 12% interest with 3 origination points paid when the deal closes.

Therefore, the borrower will be required to contribute a $108,000 down payment in addition to paying a $4,860 origination fee. The monthly interest only payments will then be $1,620 to the lender. At the expiration of the loan, she sells the rehabed house for $364,500. After subtracting the $19,440 in total interest payments ($1,620 multiplied by 12 months), the $4,860 origination fee, the $162,000 principle on the loan, and the $108,000 she contributed to closing, she will make a gross profit of $70,200 ($364,500 sales price minus $294,300 in costs). This profit would then be reduced by any building costs paid by Sara.

Loan Example 2

Patrica takes a fix and flip loan from Sterling Investor Capital so she can renovate a townhouse to flip in Houston, TX. The loan has the following parameters:

$250,000 purchase price
60% loan to value (LTV)
12 month term
13% rate of interest
3% origination fee

If Patrica accomplishes her goal of a $350,000 sales price, the final numbers of the deal will be as follows:

$350,000 sales price
- $150,000 note principle (60% LTV)
- $100,000 down payment (40% on 60% LTV)
- $4,500 origination fee (3% of the $150,000 principle)
- $19,500 interest payments (12 months x 13% interest)
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= $76,000 gross profit (does not include taxes or rehab costs)