Texas Note Company

About Texas Note Company

Texas Note Company is an Austin, TX based private lender. They provide funding throughout Texas. They provide lending solutions for many different situations and needs, including fix and flip hard money loans and commercial hard money loans. They issue rates ranging between 10% and 12% and terms up to 5 years. They offer loans on all the following types of properties: single family homes, multi family, office units, retail units, and industrial facilities.

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

Property Types Covered: Single Family, Multi Family, Office, Retail, Industrial

Areas Served: TX

Licenses: NMLS# 882783

Lending Guidelines for Texas Note Company

Below are the general loan guidelines published on the Texas Note Company 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 Texas Note Company.

Loan Example 1

Keith is a real estate investor in Houston, TX. He discovers a run-down property for sale and wants to rehab it and flip it for a profit. The property costs $330,000 but he doesn't have the full amount so he takes a fix and flip loan with Texas Note Company. The loan-to-value (LTV) on the deal is 50%. This means that Keith will have to bring 50% of the purchase price to the closing and the principle amount will be $165,000 on the deal. The rate on the loan is 13% for a term of 6 months and the company requires a three point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be returned after the property sells.

Keith must contribute a total of $32,400 upon closing to cover the $165,000 down payment in addition to the $4,950 origination fee. After the deal closes, he will pay Texas Note Company $1,788 in monthly interest payments, or 13% multiplied times $165,000 divided by 12 months in the year. At the end of the note, he sells the renovated property for $462,000. After deducting the $10,725 in interest payments ($1,788 multiplied times 6 months), the $4,950 origination fee, the $165,000 principle amount on the note, and the $165,000 he contributed to the closing, he will make a total profit of $116,325 ($462,000 sales price minus $345,675 in total costs). This amount would be reduced by any renovation costs paid by Keith.

Loan Example 2

Texas Note Company issues a hard money loan to Charlotte for a remodeling project in Houston, TX. The loan dictates the following:

$390,000 sales price
80% loan-to-value (LTV)
12 month term
11% interest rate
3% origination fee

After the rehab project is complete, if Charlotte sells the house for $546,000, the outcome would be the following:

$546,000 sales price
- $312,000 note principle (80% LTV)
- $78,000 down payment (20% on 80% LTV)
- $9,360 origination fee (3% of the $312,000 principle amount)
- $34,320 interest payments (12 months x 11% interest)
-----------------------
= $112,320 total profit (does not include taxes or rehab costs)

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