High Desert Capital

About High Desert Capital

High Desert Capital is an El Paso, TX based private lender providing funding throughout El Paso. Their focus is primarily on hard money loans for commercial properties. They make loans on all the following property types: multi-family units, apartment buildings, offices, retail storefronts, and mixed use buildings.

Loan Types Offered: Commercial Hard Money Loans

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

Areas Served: El Paso

Lending Guidelines for High Desert Capital

Below are the general loan guidelines published on the High Desert 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 High Desert Capital.

Loan Example 1

Adrian is a small business owner in El Paso, TX. He wants to acquire a new warehouse for his business but he isn't able to obtain a conventional mortgage loan from his bank due to his below average FICO score. He looks to High Desert Capital for a commercial hard money loan to close the transaction. The lender agrees to a 50% loan to value (LTV) on the deal and the new property costs $360,000, so they will loan $180,000 and Adrian will pay the additional $180,000. The loan also specifies a 6 month term, a 11% interest rate, interest-only payments paid each month with a final payment at the end of the note (without a pre-payment penalty), and a 5 point origination fee. Adrian can eliminate the note at any time if he pays off the $180,000 of principle, however, he will be required to make $1,650 /month interest payments ($180,000 principle amount x 11% interest / 12 months per year) in the meantime, or up to the point the note expires. Because there is no pre-payment penalty, the only additional cost he would have is the $9,000 origination points which he will pay at the closing.

Loan Example 2

Edward finds a house in El Paso, TX to renovate and sell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from High Desert Capital with the following parameters:

$340,000 sales price
75% loan to value (LTV)
6 month term
9% interest rate
5% origination fee

Assuming a $442,000 sales price at the end of the 6 month term, the final numbers for the deal would look like this:

$442,000 sales price
- $255,000 note principle (75% LTV)
- $85,000 cash paid at closing (25% on 75% LTV)
- $12,750 origination points (5% of the $255,000 principle)
- $11,475 interest payments (6 months x 9% interest)
-----------------------
= $77,775 gross profit (doesn't include taxes or rehab costs)

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