Corridor Funding

About Corridor Funding

Based in New Braunfels, Texas, Corridor Funding is a private money lender providing loans in Austin, San Antonio, Dallas, and Houston. They offer fix and flip loans, buy and hold rehab loans, new construction loans, and longer term commercial property and development loans. Their lending parameters do not include a minimum credit rating. They make loans on most property types, including single and multi-family, larger apartments, retail and office space, and other commercial properties.

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

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

Areas Served: Austin, San Antonio, Dallas, Houston

Loan Example 1

Earl closes on a $150,000 renovation project in Austin, TX, using a hard money loan from Corridor Funding. The loan-to-value (LTV) on the note is 60%. This means Earl will need to bring 40% of the sales price to the closing and the principle will be $90,000 on the deal. The interest rate on the note is 12% for a term of 18 months and the lender requires a two point origination fee at the close. The interest payments are to be paid on a monthly basis and the principle will be repaid after the property sells.

Therefore, Earl will need to make a $60,000 down payment plus pay a $1,800 origination fee. After the loan closes, he will need to pay the lender $900 in monthly interest fees, or 12% multiplied by $90,000 divided by 12 months in the year. Earl 's plan is to complete the rehab by the end of the 18 months and sell it for $187,500. If he succeeds he will make a gross profit of $19,500 ($187,500 price - $90,000 principle - $60,000 down payment - $1,800 origination points - $16,200 in interest.

Loan Example 2

Clifford finds a townhouse in Austin, TX to remodel and sell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from Corridor Funding with the following parameters:

$400,000 purchase price
75% loan to value (LTV)
18 month term
9% rate of interest
2% origination fee

Clifford intends to sell the project at the end of the term for $600,000. If he achieves this goal, the deal numbers would be the following:

$600,000 sales price
- $300,000 note principle (75% LTV)
- $100,000 down payment (25% on 75% LTV)
- $6,000 origination fee (2% of the $300,000 principle)
- $40,500 interest payments (18 months x 9% interest)
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= $153,500 total profit (does not include taxes or renovation costs)

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