Borrower FAQs
Who do you lend to?
We work with experienced real estate investors that focus on single-family residential construction in Texas.
What are your loan terms?
- Loan size: $500,000 – $10 million
- Loan-to-Cost (LTC) up to 90%
- Loan-to-Value (LTV) up to 75%
- Property types: 1-4 single family residential
- Loan types: new construction
- 18-month term for new construction
- First lien
- Interest-only
- 10-11% annual interest rate
- 1-1.5% origination fee
- No “junk fees” (doc prep, application, draws, wires)
What are your requirements for new borrowers?
- Three previously completed new construction or renovation projects.
- Credit score of 650 or higher.
- Liquidity of at least $30,000 in a company bank account.
What are your requirements for new loans?
- Executed purchase contract.
- Construction budget.
- Builder’s Risk and Liability Insurance.
How quickly can you fund a loan?
We can close quickly in as little as 5-10 days. However, we typically receive loan requests from borrowers with 3-4 weeks until the closing date.
How do I get started?
The first step to become a new borrower with us is to fill out our New Borrower Application.
Investor FAQs
What is the fund’s strategy?
Our private lending fund’s primary investment strategy is originating loans secured by interests in real property. We focus on high-quality homebuilders and residential real estate projects located in the Texas Triangle mega-region (Dallas–Fort Worth, Austin, San Antonio, and Houston). Within these markets, we target urban-core submarkets characterized by limited supply, proximity to top-tier schools, and access to high-income employment centers.
Who can invest in the fund?
Accredited Investors. This generally means having a net worth exceeding $1 million (excluding the value of a primary residence), or earning income over $200,000 individually ($300,000 jointly with a spouse or spousal equivalent) in each of the two most recent years with a reasonable expectation of reaching the same level in the current year. Certain professional certifications (such as Series 7, 65, or 82 licenses) and knowledgeable employees of private funds may also qualify. Entities (LLCs and LPs) can qualify if all equity owners are accredited investors.
What is the minimum investment?
The minimum investment is $100,000.
What are target annual returns?
The fund targets annual returns of 9-10%. Investors are eligible to receive an annualized preferred return of 8%, paid monthly, plus a year-end profit participation that has historically been 1-2%. The fund has generated 9-12% returns since inception in 2016.
Can I invest with my self-directed IRA or other retirement account?
Yes, we can process investments through self-directed retirement accounts, self-directed IRA custodians, and traditional brokerages such as Schwab.
Is the fund open to new investors?
Yes, as an open-end, evergreen fund, the fund is consistently taking commitments from new investors.
What is the investment period and withdrawal policy?
The fund requires that investors commit to an investment period of one year. Early withdrawals are allowed, subject to liquidity and manager discretion.
How are investment proceeds taxed?
Investment proceeds are taxed as ordinary income with the potential for the 20% Qualified Business Income (QBI) deduction and no Unrelated Business Taxable Income (UBTI) for tax-exempt accounts. Annual tax statements are reported on a Schedule K-1.
What is the structure and term of the fund?
The fund is structured as a Texas LLC with a subsidiary real estate investment trust (REIT). It is an open-end, evergreen fund with no set end date.