DB Capital

About DB Capital

DB Capital is a private lender offering loans in Texas. They provide fix-and-flip hard money loans and investment property loans. They offer rates starting at 12% and loans with a maximum LTV of 70%. The focus of their loans is for single family.

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

Property Types Covered: Single Family

Areas Served: TX

Lending Guidelines for DB Capital

Below are the general loan guidelines published on the DB 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 DB Capital.

Loan Example 1

Minerva is a house flipper in Houston, TX. She discovers a run-down property for sale and wants to renovate it and sell it for a profit. The property has a cost of $170,000 but she does not have the full amount so she takes a hard money loan with DB Capital. The terms of the note include a 85% loan to value (LTV), so she must contribute 15% of the price as cash at closing, which makes the principle loan amount $144,500. The deal also includes the following features: 1) a 12 month term, 2) a 12% interest-only note, and 3) a five percent origination charge.

Minerva will need to contribute $25,500 at the closing (15% on the 85% LTV), plus she will pay the $7,225 origination fee. Once the deal is executed and Minerva takes over the project, she will need to begin making payments each month of $1,445 to DB Capital ($144,500 principle x 12% / 12 months). At the end of the loan, she sells the renovated property for $238,000. After deducting the $17,340 in interest expenses ($1,445 multiplied by 12 months), the $7,225 origination fee, the $144,500 principle amount on the loan, and the $25,500 she brought to closing, she will make a gross profit of $43,435 ($238,000 sales price minus $194,565 in costs). This profit would be reduced by any rehab costs paid by the borrow.

Loan Example 2

DB Capital issues a hard money loan to Krista for a remodeling project in Houston, TX. The loan includes the following:

a) A $340,000 sales price, b) a 85% loan to value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 4% origination fee.

Assuming a $459,000 sales price at the end of the 12 month term, the outcome for this deal would look like this:

$459,000 sales price
- $289,000 principle (85% LTV)
- $51,000 cash paid at closing (15% on 85% LTV)
- $11,560 origination fee (4% of the $289,000 principle amount)
- $34,680 interest payments (12 months x 12% interest)
-----------------------
= $72,760 total profit (doesn't include taxes or renovation costs)

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