Tidal Loans

About Tidal Loans

Tidal Loans is a hard money lender based in Houston, Texas. They issue loans throughout the Houston, Austin, and San Antonio real estate markets. They offer flexible loan terms for fix and flip, longer term "temp to perm" loans for rental properties, loan refinancing, and new construction loans. Their rates start at just 9.99% with terms from three months up to one year. Their maximum loan-to-value (LTV) for loans is 70% and their loan-to-cost (LTC) may be up to 100%. Fees include a $375 processing fee and between two and five origination points, depending on the specifics of the loan.

Loan Types Offered: Hard Money Loans, Investment Property Loans, Fix and Flip Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Houston, Austin, San Antonio

Lending Guidelines for Tidal Loans

Below are the general loan guidelines published on the Tidal Loans 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 Tidal Loans.

Loan Example 1

Karen is a real estate investor in Houston, TX. She locates a run-down property for sale and wants to renovate it and re-sell it for a profit. The house has a cost of $360,000 but she doesn't have the full amount so she takes out a hard money loan with Tidal Loans. The loan-to-value (LTV) on the note is 60%. This means that Karen will have to bring 40% of the purchase price to the closing and the principle amount will be $216,000 on the deal. The interest rate on the loan is 13% for a term of 18 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 will be paid back after the property sells.

The borrower will need to bring a total of $32,400 up front to cover the $144,000 down payment plus the $6,480 origination fee. The monthly interest only payments will then total $2,340 to Tidal Loans. Assuming Karen sells the renovated house for $432,000 at the end of the 18 month term, her gross profit (not accounting for remodeling expenses) would be $23,400. This is computed by taking the purchase price ($432,000) and subtracting the original note amount ($216,000), the origination cost ($6,480), the funds she brought to closing ($144,000), and the total interest payments ($42,120).

Loan Example 2

Tidal Loans makes a private money loan to Valerie for a remodeling project in Houston, TX. The deal dictates the following:

a) A $230,000 purchase price, b) a 55% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 3% origination fee.

Once the rehab project is finished, if Valerie sells the project for $345,000, the outcome would be the following:

$345,000 sales price
- $126,500 principle on note (55% LTV)
- $103,500 cash paid at closing (45% on 55% LTV)
- $3,795 origination fee (3% of the $126,500 principle)
- $7,590 interest payments (6 months x 12% interest)
-----------------------
= $103,615 gross profit (doesn't include taxes or rehab costs)

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