Hard money, fix and flip and DSCR loans in Dallas: your questions answered

It is a mortgage on an investment property that is funded by private institutional investors, not a bank. The decision is based on the property and the deal: its value after renovation or construction, or whether its rent covers the payment. Your job history and debt-to-income ratio are not reviewed.

Dallas Fix and Flip Loans is the Dallas–Fort Worth division of Optimus Capital Corp, a nationwide hard money lender that works only with real estate investors. It is run by Andrew Shanti, Senior Vice President, who has worked in lending and real estate since 2005.

Across the Dallas–Fort Worth metroplex: Dallas, Fort Worth, Arlington, Plano, Irving, Garland, McKinney, Denton and the cities around them in Dallas, Tarrant, Collin and Denton counties. Through Optimus Capital Corp we also lend in other states.

Fix and flip loans, DSCR loans for rental property, ground-up construction loans, mid-rehab and completion loans, rental portfolio loans, and commercial loans on multifamily, hospitality, office, industrial and retail property.

Choose a lender that funds most of the purchase and all of the renovation, pays draws promptly, and underwrites foundation work, insurance and Texas property taxes realistically. We lend up to 90% of the purchase and 100% of the rehab on terms of 6 to 24 months. See investment property loans in Dallas.

It means the borrower will not live in the property. Flips, rentals and new builds for sale are non-owner-occupied, and they are financed with business-purpose loans. Every loan we make is on non-owner-occupied property.

No. We lend on investment property only. The exception is commercial property occupied by the owner’s business. For a primary residence, a conventional NMLS-licensed mortgage broker is the right place to go.

As a rule, no, except on large commercial loans. The one cost before closing on most loans is the appraisal, which you pay to the appraisal company.

Programs begin at a 600 score. Fix and flip loans start at 600 with reduced leverage, while the best terms, 90% of purchase and 100% of rehab, are for scores of 720 or higher. Rental loans are available at 600 with up to 70% loan-to-value.

No. We look at three things: enough cash to buy and carry the property, a property that can cover its payment now or once the work is finished, and a credit record that shows debts are paid on time.

No. These are business-purpose loans and are not reported on personal credit like a conventional mortgage.

As many as your deals support. There is no limit on the number of properties we will finance for one investor.

Yes. We will need the certificate of formation, the IRS EIN letter, a signed company agreement showing each member’s share and, if the LLC is over a year old, a certificate of account status or good standing.

Texas has no state or local transfer tax and no mortgage recording tax, so closing costs are lower than in many states. Title insurance premiums are set by the Texas Department of Insurance, and closings are handled by a title company.

A DSCR loan is approved on the debt service coverage ratio: the rent divided by the full monthly payment. We prefer 1.0 or higher. Strong borrowers can qualify below 1.0 with lower leverage, and a no-DSCR program exists at a higher rate.

Short-term rental rules differ city by city across North Texas. Dallas adopted a ban on short-term rentals in single-family zones in 2023, but the courts have blocked its enforcement while the city appeals, and every operator must still register with the city. Fort Worth allows short-term rentals only in mixed-use, commercial and similar districts, not in residential zones, and Arlington limits them to designated areas. Because the rules can change quickly, we underwrite on long-term rent unless the address can legally host short stays.

Texas has no state income tax, so local governments rely on property tax, and combined rates in Dallas–Fort Worth are often around 2% of value or more. Investment property gets no homestead exemption. For the 2024 to 2026 tax years, the taxable value of non-homestead property worth $5 million or less can rise no more than 20% a year, but the limit resets when the property is sold, so a new buyer is taxed on full market value.

Texas law bars cities from adopting rent control, so rents follow the market. Dallas requires owners of rented single-family homes, duplexes and condos to register each year, and the city inspects each single-family rental at least once every five years.

North Texas sits on expansive clay that swells when wet and shrinks when dry, so foundation movement is common in older slab and pier-and-beam houses. Get a foundation inspection or an engineer’s report before you set the rehab budget.

Yes, through our rental loan programs.

Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included.

In Texas, a title company handles the closing and issues the title policy. Have yours chosen when you apply.

The minimum is $75,000. The maximum is more than $10 million.

From 6 months to 30 years. Fix and flip loans are 6 to 24 months with interest-only payments. Rental loans are fixed for 5 to 30 years.

Not on fix and flip loans. Rental loans come with a 3-year or 5-year prepayment penalty, the 5-year usually priced about 0.25 to 0.5% lower, or with no penalty at a higher rate.