Prein Funding

About Prein Funding

Headquartered in Austin, TX, Prein Funding is a private money lender providing loans in Austin, San Antonio, Houston, Dallas, and Fort Worth. They offer short term bridge loans, private commercial loans, fix-and-flip loans, and long term rental property loans. Their loan guidelines are versatile, including terms between 6 months and 1 year, loan amounts ranging from $50,000 to $1,000,000 with a maximum LTV of 65%, and rates ranging between 10% and 14%. They provide loans on various types of properties, including single family units, multi-family units, apartments, office units, retail spaces, hotels and motels, storage buildings, senior facilities, mixed use spaces, warehouse buildings, industrial buildings, medical buildings, undeveloped land, and churches.

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

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

Areas Served: Austin, San Antonio, Houston, Dallas, Fort Worth

Lending Guidelines for Prein Funding

Below are the general loan guidelines published on the Prein Funding 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 Prein Funding.

Loan Example 1

Willie takes a fix and flip loan from Prein Funding in order to remodel a property to flip in Austin, TX. The price of the property is $250,000. As the lender sets a 50% loan to value, Willie will need to put 50% down so the principle amount of the note will be $125,000. The loan also includes the following features: 1) a 18 month term, 2) a 12% interest-only note, and 3) a three percent origination fee.

Therefore, Willie will have to contribute a $125,000 down payment plus pay a $3,750 origination fee. The lender will collect $1,250 in monthly interest payments from the Willie. This is calculated by taking the total note amount of $125,000, multiplying by the 12% interest rate, and then dividing that amount by 12. If Willie sells the project for $350,000 after 18 months, he would then earn a gross profit of $73,750 after subtracting the original principle of $125,000, the money paid at the close of $125,000, the origination points of $3,750, and the total interest payments of $22,500. This amount doesn't include remodeling costs.

Loan Example 2

Prein Funding makes a fix and flip loan to Eduardo for a rehab project in Austin, TX. The deal dictates the following:

$360,000 sales price
60% loan to value (LTV)
18 month term
13% interest rate
1% origination fee

If Eduardo achieves his goal of a $504,000 sales price, the numbers of the deal would be the following:

$504,000 sales price
- $216,000 principle (60% LTV)
- $144,000 down payment (40% on 60% LTV)
- $2,160 origination points (1% of the $216,000 principle amount)
- $42,120 interest payments (18 months x 13% interest)
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= $99,720 gross profit (does not include taxes or renovation costs)

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