Seal Funding

About Seal Funding

Seal Funding is a Houston, TX based private lender who provides loans in Texas. They provide commercial loans, loans for investments properties, and fix-and-flip hard money loans. They offer terms between 6 months and 30 years and loan amounts ranging from $50,000 to $350,000 with a maximum LTV of 70%. The focus of their lending is for single family and multi family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: TX

Lending Guidelines for Seal Funding

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

Loan Example 1

Esmeralda is a real estate investor in Houston, TX. She locates a run-down property for sale and wants to rehab it and flip it for a profit. The house has a cost of $270,000 but she doesn't have the full amount so she takes out a hard money loan with Seal Funding. The loan-to-value (LTV) on the note is 65%. This means that Esmeralda will bring 35% of the purchase price to closing and the principle will be $175,500 on the loan. The parameters of the loan dictate a 14% note for 12 months. They also stipulate a 5 point origination fee, which will also be paid at closing.

In addition to paying the $8,775 origination fee, Esmeralda will also fund $94,500 of the purchase with her own money, or 35% of the purchase price. The monthly interest-only payments will then be $2,048 to Seal Funding. If Esmeralda sells the project for $364,500 after 12 months, she would earn a total profit of $61,155 after deducting the principle of $175,500, the money contributed at the close of $94,500, the origination points of $8,775, and the total interest payments of $24,570. This gross profit doesn't account for remodeling costs.

Loan Example 2

Lee is a an investor in Houston, TX. She buys an older townhouse for a renovation project and obtains a hard money loan from Seal Funding with the following features:

a) A $390,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 5% origination fee.

Assuming a $526,500 sales price after the 6 month term, the outcome for this deal would look like the following:

$526,500 sales price
- $292,500 principle (75% LTV)
- $97,500 cash paid at closing (25% on 75% LTV)
- $14,625 origination fee (5% of the $292,500 principle)
- $17,550 total interest paid (6 months x 12% interest)
-----------------------
= $104,325 total profit (doesn't include taxes or rehab costs)

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