Texas Direct Lender Since 1998
SBA – Hard Money – DSCR – Stated Income – Construction – Church Loans
No upfront fees. No tax returns on most programs. Fast approvals. We lend in 44 states.
No credit pull to get rates. Same-day response. Direct lender, not a broker.
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Answer 5 quick questions and we’ll show you exactly what your deal qualifies for.
Every loan type below closes right here in Texas. No middleman. No runaround.
Fast closings, no income docs. Up to 70% LTV. 1-3 year terms.
Qualify on rental income, not personal income. Up to 80% LTV. 30-year fixed.
Owner-occupied commercial property. Up to 90% LTV. 20-25 year terms.
Self-employed? No tax returns required. Up to 80% LTV. 5-30 year terms.
Ground-up or renovation. Up to 85% LTC. 12-24 month terms with draws.
Specialized church financing. Refinance, purchase, renovation. 10-25 yr.
Purchase and rehab in one loan. Up to 90% of purchase. 6-18 month terms.
Long-term stability on commercial property. Up to 80% LTV. Fully amortized.
Most deals get a same-day response. Closings in as few as 7 days on hard money.
Call 877-895-3634 or click Get FREE Rate Quote. Tell us about your deal in 5 minutes.
We match your deal to the right program and send exact rates the same day. No credit pull.
We handle everything start to finish. Hard money closes in 7-14 days. Conventional in 30-45.
Closing Texas commercial loans since 1998. Here is what that means for you.
No broker fees, no middleman delays. When we say yes, it is funded.
You do not pay us until your loan closes. No application or processing fees.
Self-employed, LLC, or complex income? Our programs are built for that.
Se habla espanol. We serve the full Texas market.
We work with mortgage brokers. Your client, your commission. Always.
Houston, Dallas, Austin, San Antonio, and everywhere in between.
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“We are thankful for Dan Peterson and the team who gave us the funds to consolidate our debt. Thank you.”
“Every step from LOI through closing was guided with great service. Highly recommend.”
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“I strongly recommend Commercial Loans of Texas! Daniel was instrumental in getting my hard-money bridge loan approved.”
“Daniel Peterson did a fantastic job closing my construction loan. He went out of his way to make sure I had all my options.”
“Got a challenging loan approved and closed. Best customer service. They get’m DONE in a timely manner.”
“As a former Texas Real Estate Commissioner I can tell you this group knows what it takes to get business done with prompt professionalism.”
“We are thankful for Dan Peterson and the team who gave us the funds to consolidate our debt. Thank you.”
“Every step from LOI through closing was guided with great service. Highly recommend.”
“I strongly recommend Commercial Loans of Texas! Daniel was instrumental in getting my hard-money bridge loan approved.”
“Daniel Peterson did a fantastic job closing my construction loan. He went out of his way to make sure I had all my options.”
Based in Texas, we lend in 44 states nationwide.
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Commercial Loans of Texas – Magnolia, TX – Texas Lender Since 1998
Rates are estimates. OAC. Not all borrowers qualify. Subject to change daily.
A low credit score does not automatically disqualify you from commercial financing in Texas. Here's what's actually available at every credit level.
A bridge loan is short-term, asset-based financing that closes fast and gets out of the way. It's not a replacement for conventional financing — it's what you use when timing, property condition, or deal complexity makes a bank impractical.
Property has significant vacancy and doesn't qualify for permanent financing yet. Bridge covers the acquisition and operating gap while you lease the asset to stabilization.
Buying a C-class property and repositioning it to B. Conventional lenders won't touch the as-is condition. Bridge funds acquisition plus renovation draws.
Off-market deal, auction purchase, or motivated seller who needs to close in 10–21 days. Bank timelines of 60–90 days make the deal impossible. Bridge makes it possible.
Land or a building in the permit/entitlement process. Construction lenders won't fund until entitlement is in hand. Bridge finances the gap between purchase and shovel-ready.
45-day identification and 180-day close deadlines under IRC 1031 create timing pressure. Bridge funds the replacement property purchase while the exchange is being structured.
Three very different tools — knowing when to use each one saves you time, money, and headaches.
How investors use bridge financing to execute deals that conventional lenders simply can't handle:
Investor acquires a 10-unit strip center at $1.2M with 4 vacant units. At 60% occupancy the NOI doesn't support conventional financing. Bridge loan at 65% LTV ($780K) funds the acquisition. Over 14 months investor leases remaining units, pushing occupancy to 92%. Refinances into CMBS at $1.55M appraised value — pulling $120K cash at refi.
Investor sells an apartment complex and enters a 1031 exchange. With 38 days left in the identification window, they locate a 12,000 SF suburban office building at $1.8M. The seller needs to close in 21 days — impossible for a conventional lender. Bridge loan closes in 18 days. Investor takes 6 months to complete the 1031 paperwork, then refinances into a SBA 504 owner-occupancy loan at 6.8%.
A 6-unit mixed-use building (4 retail, 2 residential) needs $180K in renovations and has 3 vacant units. Purchase price: $650K. Bridge loan covers acquisition ($650K) plus renovation holdback ($180K) = $830K total commitment at 72% LTC. Renovation completed in 9 months, all units leased at market rate. Permanent DSCR loan at stabilization pays off the bridge at a $980K appraised value.
Submit your deal — address, acquisition price, rehab scope, and your exit plan. We'll have a bridge loan term sheet back within 24 hours. Texas CRE only.
Get a Bridge Term Sheet →We work with commercial mortgage brokers, residential agents, financial advisors, and CPAs across Texas. When your client needs a commercial loan we can close, you earn a referral fee at closing — no license required.
Paid directly to you at closing. No waiting, no invoices. We handle all paperwork.
You get a direct line to the decision-maker. Term sheet in 24–48 hours, not 2 weeks.
Your relationship stays yours. We close the deal and you stay in the loop the whole way.
Referral arrangements are available to anyone in Texas. CPAs, attorneys, agents — all welcome.
Office, retail, industrial, multifamily, mixed-use, land, hard money — we cover all of it.
No middle-man, no broker chain. We underwrite in-house, so we know immediately if we can close.
Email or call with the property address, loan amount, and what the borrower needs. Takes 2 minutes.
You get a preliminary term sheet or a clear "no" — never left wondering. No wasted client time.
We handle everything from here. You stay copied on key milestones so your client stays happy with you.
Referral fee wired at closing. Simple, clean, and no paperwork headaches on your end.
"I had a client with a $1.2M warehouse purchase that kept getting turned down by conventional lenders. Sent it to Commercial Loans of Texas on a Friday — had a term sheet Monday morning. Closed in 19 days. My client was thrilled and I had a new referral source for life."
— Commercial real estate agent, Houston TXNo obligation. We'll tell you in 24 hours if we can close it, what the rate looks like, and what your referral fee would be. Most brokers send us 3–4 deals a month once they see how fast we move.
Commercial construction loans fund the build, not the finished product. Understanding how they're structured — draws, inspections, interest reserves — tells you what to expect from Day 1 through certificate of occupancy.
Funds horizontal development and vertical construction on raw or entitled land. The most complex construction loan type — requires complete plans, permits, cost breakdown, and contractor vetting. Interest paid on drawn balance only.
Existing structure being taken down to studs — new MEP, new interior, potentially new exterior skin. Treated like construction by most lenders. Requires full scope of work, licensed GC, and draw schedule aligned to renovation phases.
Construction of a commercial building pre-leased to a specific tenant. The lease agreement reduces lender risk significantly — many build-to-suit deals close at 75–80% LTC because a credit tenant lease is essentially collateral. Office, industrial, and healthcare are common BTS property types in Texas.
Raw land development — utility infrastructure, roads, pads. Highest risk construction category. Lenders look closely at entitlement status, absorption projections, and developer experience. Typically requires 30–35% equity with proceeds released in phases as lots sell or infrastructure milestones are reached.
The full loan amount isn't disbursed at closing — it's released in stages as verified construction milestones are completed. Here's a typical 5-draw commercial construction loan:
Released at loan close after land acquisition confirmed. Covers site prep, utility rough-ins, and foundation work.
Largest draw — framing is the most material-intensive phase. Structural inspections required before release.
Mechanical, electrical, and plumbing rough-ins complete — the work that lives inside the walls before drywall goes up. Must pass city inspection.
Drywall hung and finished, interior finishes in progress. Exterior complete. Lender inspection confirms progress matches disbursement.
Final draw released upon receipt of Certificate of Occupancy from the city. Building is complete, punch-list done, ready for occupancy or lease-up.
Submit your project summary: property address, plans status, total project cost estimate, and your contractor. We'll tell you where you stand and what the financing looks like within 24 hours.
Submit Your Construction Project →Commercial Loans of Texas lends our own money — we don't broker your loan to someone else. Here's why that matters on every deal.
Bottom line: When you work with a direct lender, you get a faster answer, a lower rate, and someone who actually has skin in the game. We've been direct lending in Texas since 1998 — not brokering, not selling your loan to Wall Street. Your loan stays with us.
Beyond the basics — answers to the harder questions about commercial financing in Texas.
Have a question that's not here? Call or submit your deal — we answer in plain English, same day.
Submit Your Deal →30+ key terms every commercial real estate borrower and investor should know — from NOI to DSCR to cap rate. Click any term for a plain-English explanation.
Annual rental income minus all operating expenses — but before mortgage payments, depreciation, and income taxes. NOI is the single most important number in commercial real estate underwriting. It's what the property earns, independent of how it's financed.
Cap rate converts a property's NOI into a value. Divide NOI by the cap rate to get value. Lower cap rate = higher price relative to income (used in stronger markets). Higher cap rate = more income relative to price (used in secondary markets or distressed assets). Cap rates are market-driven — no formula sets them.
Measures how well a property's income covers its mortgage payment. 1.0x = break-even (income exactly equals debt payment). 1.25x = 25% cushion above the payment. Most commercial lenders require 1.20x–1.25x minimum. DSCR loans use this ratio as the primary qualifying metric instead of borrower income.
The loan amount expressed as a percentage of the property's appraised value. 75% LTV on a $400K property = $300K loan. LTV determines how much equity the borrower must contribute. Lower LTV = more equity cushion = lower risk for lender = potentially lower rate. Commercial DSCR loans typically max at 75–80% LTV.
Used in construction and value-add lending. The loan amount as a percentage of the total project cost (land + construction/rehab). Different from LTV, which uses appraised value. Most construction lenders will lend 75–80% LTC. At 75% LTC on a $500K project, the loan is $375K and you contribute $125K.
The estimated market value of a property after all planned renovations are complete. Used heavily in hard money lending and fix-and-flip underwriting. Lenders typically lend based on purchase price LTV, not ARV — but ARV determines whether the deal makes sense and how much equity will be created by the rehab.
Annual pre-tax cash flow divided by total cash invested. The real-world return on your out-of-pocket investment after paying the mortgage. Different from cap rate (which ignores financing). A 6% cap rate property with 75% LTV at today's rates might yield only 2–4% cash-on-cash — or even negative. CoC is what actually lands in your account.
A quick screening metric: property price divided by annual gross rent. Lower GRM = more rent relative to price = better income deal. Useful for rapidly comparing deals in the same market but not a substitute for full underwriting — it ignores expenses, vacancy, and debt service completely.
A loan where payments cover only the interest owed — no principal is paid down during the IO period. Common in bridge loans, hard money, and commercial deals where the investor plans to sell or refinance before the loan converts to amortizing. IO maximizes cash flow during the hold period but leaves the full principal balance due at maturity.
A large lump-sum payment due at the end of a loan term — often the entire remaining principal. Commercial loans frequently have a 5-year or 10-year balloon on a 25–30 year amortization schedule. This forces a refinance or sale at maturity. Know your balloon date and have your exit strategy in place 12–18 months before it hits.
Title is legal ownership of a property. "Clear title" means no undisclosed liens, judgments, or ownership disputes cloud the property. Title insurance protects lenders and buyers from title defects discovered after closing. In Texas, title insurance rates are set by the state — the premium is the same regardless of which title company you use, so shop for service quality.
An IRS provision allowing investors to defer capital gains taxes by rolling proceeds from one investment property sale directly into the purchase of another "like-kind" property. Rules: identify replacement property within 45 days of closing; close within 180 days; use a qualified intermediary to hold funds. Can be repeated indefinitely — some investors never pay capital gains tax in their lifetime.
The expected percentage of potential rent lost to vacant units and uncollected rent. Lenders apply a standard vacancy factor (typically 5–10% for residential, 10–15% for commercial) when underwriting — even if the property is 100% occupied today. This is the difference between "potential gross income" and "effective gross income."
Submit your deal — Daniel will walk through the numbers with you and issue a term sheet in 24 hours.
Discuss Your Deal →Land is the highest-risk loan category in commercial real estate — it produces no income to service debt, and its value is entirely speculative until something is built on it. Yet Texas's growth means land deals are everywhere. Here's how to get yours funded.
No utilities, no entitlements, no clear development plan. Pure speculation. Most institutional lenders won't touch this — requires private/bridge capital or seller financing.
Utilities stubbed to the property line, road access confirmed, some grading or site work done. More lendable — reduces "how do we get there" risk.
Zoning approved, preliminary plat filed or approved, environmental cleared. This is what turns a speculative land play into a financeable development deal.
Fully entitled, engineered, permitted, with a builder or tenant lined up. This is the closest land gets to an income-producing asset — and lenders price it accordingly.
Understanding what happens at each phase helps you structure the right financing at the right time — not one loan that tries to cover everything.
Most developers don't use one loan — they use a sequence. Land loan carries the acquisition through entitlement, then a construction loan replaces it when permits are in hand. Here's how sophisticated Texas developers structure it:
We've funded land acquisitions from shovel-ready pads to raw acreage with a solid exit plan. Tell us your parcel, your entitlement status, and your exit strategy — we'll tell you what we can do and at what terms. No obligation.
Submit Your Land Deal →The type of lease on a commercial property changes everything — your cash flow predictability, your expense exposure, and how lenders underwrite the NOI. Here's a plain-English breakdown of each structure.
The holy grail of commercial leases for passive investors. The tenant pays a base rent (lower than gross lease) plus all three "nets": property taxes, building insurance, and CAM (common area maintenance / structural repairs). The landlord receives a predictable, nearly-expense-free income stream.
Best for: Single-tenant retail (gas stations, pharmacies, fast food, dollar stores), long-term leases with creditworthy national tenants. NNN tenants are often corporate entities with 10–20 year leases. The "passive income" ideal.
The simplest lease structure: tenant pays one flat monthly rent. The landlord pays all operating expenses — taxes, insurance, maintenance, and utilities. Tenant has maximum cost predictability. Landlord absorbs all expense variability. Common in office buildings and multi-tenant retail.
Best for: Multi-tenant office, co-working space, smaller retail where tenants expect all-inclusive rent. Landlord takes on expense risk but can charge higher base rent to compensate. Lenders will underwrite NOI carefully since expenses are variable.
A hybrid between gross and NNN where expenses are negotiated individually. Tenant pays base rent plus some expenses (often utilities, sometimes taxes); landlord retains liability for others (often structural). The exact split depends entirely on lease negotiation. Common in industrial and flex space.
Best for: Industrial properties, flex/tech office, smaller local tenants who need cost predictability on some items. Investors should carefully model which expenses they retain before underwriting the NOI.
A retail-specific structure where the tenant pays a base rent plus a percentage of their gross sales above a "natural breakpoint." Common in shopping centers, malls, and high-foot-traffic retail strips. Gives the landlord upside participation in tenant success — but also creates income variability.
Best for: Shopping center landlords with anchor-tenant draws. Percentage rent aligns landlord and tenant — the tenant succeeds, the landlord benefits. Lenders will underwrite to base rent only (not percentage rent) when evaluating NOI — conservative and correct.
We underwrite to the income the property actually produces — regardless of lease type. Submit your deal and we'll structure the loan around your actual NOI.
Submit Your Deal →We've closed Texas commercial loans in as few as 7 business days. Here's exactly how the process works — and why we move faster than any bank you've tried.
Fill out our one-page application or call Daniel directly. We need the basics: property address, purchase price or loan amount, property type, and your exit strategy (or refinance goal). No financials required at this stage.
Daniel personally reviews every submission. You won't deal with a junior processor or an automated system.
We issue a non-binding term sheet with proposed loan amount, rate, LTV, and term. This is a real answer from a real decision-maker — not a "we'll get back to you" after a committee meeting.
If the deal needs structure (e.g., different LTV, IO period, partial release provisions), we discuss it now — not after you've spent $2,000 on an appraisal.
We order a third-party appraisal (or desktop BPO for smaller deals) and review property condition, title, rent rolls, and market comps. For income-producing properties, we underwrite to DSCR — not personal income.
We work in parallel with your attorney and title company. Most commercial lenders work sequentially — we don't. That's how we cut weeks off the timeline.
Once underwriting is complete, we issue a firm loan commitment letter — the binding agreement that says we will fund this loan at these terms. No more surprises at the closing table.
Conventional banks issue commitments only after 30–60 days of processing. Our commitment comes in week two — giving you time to negotiate, satisfy contingencies, or plan your rehab.
We coordinate directly with your title company to schedule closing. Funds wire the day of closing. Most of our loans close in 2–3 weeks total — some faster when the property and title are clean.
We remain your lender for the life of the loan. No loan servicing transfers. Same contact, same terms, same relationship — whether you're in month 3 or year 5.
We keep the paperwork minimal. Here's what's actually required for a standard commercial loan:
One short form. Daniel reviews it today and sends a term sheet within 24 hours. No commitment required.
Submit Your Deal →Bridge, hard money, construction, permanent, SBA — each serves a different purpose at a different cost. Here's how they compare so you can match the right loan to your deal.
Used to bridge from one state to another: buy before you sell, buy a property that needs stabilization before a permanent loan, or fund a value-add project before a conventional refinance. Lower rate than hard money, slightly slower close.
The fastest close, highest rate. Used for fix-and-flip, auction purchases, and distressed acquisitions that can't qualify for bridge or conventional. Property condition is irrelevant — we lend on ARV and equity.
Funds released in draws as construction milestones are met — not upfront. Interest only on drawn amount. Converts to permanent loan or is paid off upon completion. Requires approved plans, permits, and a licensed GC.
The long-game loan: stabilized rental income qualifies the loan, not your personal W-2. DSCR loans have no property count limit, work for LLCs, and close faster than conventional. Used for buy-and-hold investors who want predictable 30-year payments.
Only for businesses that owner-occupy the property (51%+ for 7(a), 51%+ for 504). Lowest down payment available. Slowest close. SBA 504 splits the loan between a bank (50%) and SBA CDC (40%) — best fixed-rate option for qualifying businesses.
Most deals use multiple loan types in sequence. Here's how experienced Texas investors stack them:
Describe your project and Daniel will tell you which structure makes the most sense — and issue a term sheet within 24 hours if it's fundable.
Submit Your Deal →Rates have stabilized. Texas population growth is still outpacing every other state. Here's what the market looks like right now — and where experienced investors are moving.
2022–2024 overbuilding has softened rents in Austin and San Antonio, but absorption is now catching up. Houston and DFW remain undersupplied. Class B value-add is the strongest play in 2026 — buy at today's soft rents, reposition, hold for the rebound.
E-commerce and near-shoring continue to drive industrial demand. DFW is the #2 industrial market in the country. Last-mile distribution, manufacturing support, and cold storage all have sub-4% vacancy. Cap rates remain compressed but fundamentals support pricing.
Strip centers anchored by essential services (grocery, medical, nail/salon) outperform. Class A suburban retail in high-growth submarkets is strong. Avoid single-tenant big box and Class B/C enclosed malls. Texas has no income tax which supports discretionary spending.
National hybrid work trends continue to suppress office demand, but Texas outperforms: DFW and Houston office absorption is better than coastal markets. Medical office and Class A suburban remain fundable. Downtown Class B/C office faces serious headwinds — discounts create opportunity if you can reposition.
Rates have come down from 2023 peaks. Deals that penciled out at 5% two years ago need to be re-underwritten at today's rates — but a lot of distressed sellers are motivated.
Rates as of mid-2026. Actual rate depends on LTV, DSCR ratio, property type, and borrower credit profile.
We know these markets and can get you a term sheet in 24 hours. No 60-day committee wait. Just a direct answer from someone who's been lending in Texas since 1993.
Submit Your Deal →Multifamily financing isn't one product — it's a spectrum that changes fundamentally at 5 units, at $1M, and at $5M. Understanding which loan type applies to your deal size prevents wasted time applying to the wrong lender with the wrong program.
Unlike residential loans that rely on your personal income, multifamily loans are underwritten on the property itself. Here's what drives approval — and what kills deals:
See how the numbers work across three common Texas apartment deal sizes:
| Item | Lender's Underwritten Numbers |
|---|---|
| Units / Avg Rent | 12 units @ $1,150/mo average |
| Gross Potential Rent (GPR) | $165,600/yr |
| Vacancy Allowance (7%) | -$11,592 |
| Effective Gross Income (EGI) | $154,008 |
| Operating Expenses (40% ratio) | -$61,603 |
| Net Operating Income (NOI) | $92,405 |
| Loan Amount (75% LTV on $1.1M appraisal) | $825,000 |
| Annual Debt Service (7.0%, 30yr amort) | -$65,940 |
| DSCR | 1.40× ✓ Approved |
| Item | Lender's Underwritten Numbers |
|---|---|
| Units / Avg Rent | 42 units @ $1,320/mo average |
| Gross Potential Rent (GPR) | $665,280/yr |
| Vacancy Allowance (6%) | -$39,917 |
| Effective Gross Income (EGI) | $625,363 |
| Operating Expenses (42% ratio) | -$262,652 |
| Net Operating Income (NOI) | $362,711 |
| Loan Amount (70% LTV on $4.8M appraisal) | $3,360,000 |
| Annual Debt Service (6.75%, 30yr amort) | -$261,590 |
| DSCR | 1.39× ✓ Approved |
| Item | Lender's Underwritten Numbers |
|---|---|
| Units / Avg Rent | 88 units @ $975/mo (workforce housing) |
| Gross Potential Rent (GPR) | $1,029,600/yr |
| Vacancy Allowance (8%) | -$82,368 |
| Effective Gross Income (EGI) | $947,232 |
| Operating Expenses (48% ratio — Class C) | -$454,671 |
| Net Operating Income (NOI) | $492,561 |
| Loan Amount (65% LTV on $6.8M appraisal) | $4,420,000 |
| Annual Debt Service (7.25%, 30yr amort) | -$361,334 |
| DSCR | 1.36× ✓ Approved |
Submit the unit count, current occupancy, gross rents, and your acquisition price. We'll tell you which program fits, what LTV you can achieve, and have a term sheet back in 24 hours.
Get Multifamily Financing →NNN properties are the most passive form of commercial real estate — the tenant pays taxes, insurance, and maintenance. They're also the most cap-rate-compressed. Here's how to analyze them, tier tenants by credit quality, and structure the financing.
The creditworthiness of the tenant is the most important variable in NNN loan pricing. Lenders will advance more capital at better rates for investment-grade tenants:
Enter the deal parameters to see your loan amount, annual cash flow after debt service, and cash-on-cash return:
NNN properties are low-maintenance but not low-risk. Here's what experienced buyers watch for:
A 10-year lease with 2 years remaining is a vacant building risk, not a NNN investment. Lenders typically want 7+ years remaining on the primary term. Under 5 years = significant cap rate premium and LTV reduction.
What is the building worth if the tenant leaves? A Dollar General in rural Texas may be worth $600K occupied but $200K dark. The gap between these is your real risk. Demand rent-to-revenue ratio from operator to assess renewal probability.
"NNN" can be loosely applied. True absolute NNN means tenant pays everything including roof and structure. Modified NNN (or "double net") means the landlord retains some structural obligations. Read the lease — don't trust the broker's designation.
Older NNN leases often have no rent bumps — flat rent for 20 years. With 3–4% annual inflation, a $100K flat lease signed in 2010 is worth significantly less in real purchasing power by 2030. Require rent escalations of at least 1.5–2% annually in any new deal.
A McDonald's leased to McDonald's Corp is fundamentally different from a McDonald's leased to a 3-unit franchisee. The brand is the same; the credit is not. Always determine who signs the lease — the parent or the operator.
Retail NNN tenants must have defensible businesses. Dollar stores and fast food have proven durable. Certain retail categories (vitamin shops, some cellular, some casual dining) have shown meaningful closure risk. Research recent store closures for your specific tenant concept before buying.
NNN acquisitions often have timing pressure — motivated sellers, 1031 deadlines, or competitive offers. Submit your deal and we'll have a term sheet within 24 hours. Texas commercial only.
Get NNN Financing →Most investors focus on cap rates and miss the programs that can dramatically improve their after-tax returns. Texas offers four major investment incentive structures — here's how each works and who qualifies.
Created by the 2017 Tax Cuts and Jobs Act, Opportunity Zones allow investors to defer and potentially eliminate capital gains taxes by reinvesting gains into designated low-income census tracts through a Qualified Opportunity Fund (QOF). Texas has 628 designated Opportunity Zones.
How it works: Sell appreciated stock, real estate, or business assets → reinvest capital gains (not the full proceeds) into a QOF within 180 days → defer the original gain and eliminate new OZ appreciation after 10 years.
Key OZ requirement: Substantial improvement rule — you must double the adjusted basis of the property within 30 months of acquisition. This means value-add and development projects, not passive buy-and-hold of stabilized assets.
Texas counties and municipalities can grant property tax abatements — temporarily reducing or eliminating property taxes on new construction or major rehabilitation of commercial, industrial, or manufacturing properties. Governed by Chapter 312 of the Texas Tax Code.
Typical qualifying criteria: Minimum investment threshold (varies by jurisdiction; often $1M–$5M+), new jobs created, location in a designated zone, and agreement to keep improvements for the abatement term.
Best for: Industrial developers, distribution center projects, large multifamily developments, and manufacturers relocating to Texas. Not typically available for smaller residential or retail projects.
Texas authorized C-PACE (Commercial PACE) financing, which allows commercial property owners to finance energy efficiency upgrades (HVAC, solar, LED lighting, building envelope, EV charging) through a special assessment on the property — not a loan on the borrower. The assessment repays over 5–30 years as part of the property tax bill.
Why it matters for CRE investors: Upgrade an aging HVAC system, add solar, or improve insulation with no upfront cash. The savings on operating costs often exceed the PACE payment — making it cash-flow positive from day one. Increases NOI and therefore property value.
Texas PACE is available in: All counties that have adopted a PACE program (most major TX metros participate). Check the Texas PACE Authority (texaspacenow.com) for eligible counties.
The Federal Historic Tax Credit provides a 20% tax credit on Qualified Rehabilitation Expenditures (QREs) for certified historic structures. Texas also offers a 25% state HTC. These credits can be stacked — a $2M rehab on a qualifying building could generate $450K+ in combined federal and state credits.
Qualifying requirements: Building must be listed on or eligible for the National Register of Historic Places; rehabilitation must meet the Secretary of Interior's Standards for Rehabilitation; construction must be substantial (QREs > 100% of adjusted basis or $5,000+).
Opportunity in Texas: Texas has significant historic building stock in downtown cores — San Antonio, Galveston, downtown Dallas and Houston, Waco, and El Paso all have active Historic Districts with eligible buildings trading at attractive prices precisely because of the rehab requirements that deter conventional buyers.
628 designated OZ census tracts across Texas — here are key areas where investors are actively deploying capital:
We've structured commercial loans alongside Opportunity Zone investments, PACE financing, and Historic Tax Credit deals. Submit your project — we'll structure the debt layer around your incentive stack.
Discuss Your Deal →This is general educational information — not tax or investment advice. Consult a qualified CPA, tax attorney, and OZ advisor before structuring any tax-incentive investment.
Most deals close in 7–21 days. Here's exactly what happens from application to funding.
Most of our borrowers complete steps 1–2 in under 30 minutes. Get your soft quote today — no credit check, no commitment.
Start Step 1 Now — Free QuoteFrom single-tenant retail to 100-unit apartment complexes — if it generates income, we have a loan for it.
Direct lender rates updated weekly. No broker markups. All programs close in-house.
| Loan Type | Rate Range | Max LTV | Term | Min Loan | Best For |
|---|---|---|---|---|---|
| Hard Money Bridge | 9.99%–12.99% | 70% | 12–24 mo | $100K | Fix & flip, fast close, distressed |
| Stated Income CRE | 7.49%–9.99% | 75% | 5/25, 10/25 | $150K | Self-employed, no tax returns |
| DSCR / Rental | 6.99%–8.99% | 80% | 30yr fixed | $100K | Buy & hold investors, cash flow |
| SBA 504 | Prime + 1.5%–2.5% | 90% | 10–25 yr | $500K | Owner-occupied, low down payment |
| Commercial Cash-Out Refi | 7.25%–10.5% | 70% | 5–10 yr | $200K | Pull equity, fund next deal |
| Construction / Land | 10.99%–13.99% | 65% | 12–18 mo | $250K | Ground-up, lot acquisition |
| Portfolio / Blanket | 7.99%–10.49% | 70% | 5–30 yr | $500K | 5+ properties, cross-collateral |
| Foreign National | 8.99%–12.99% | 65% | 5–10 yr | $200K | No US credit, overseas investors |
Rates shown are starting rates as of August 2026 and subject to change. Final rate depends on LTV, property type, credit profile, and market conditions. Texas properties only.
Texas retail is performing — vacancy rates are tightening across all major metros as e-commerce displacement has largely played out. But retail underwriting is more granular than multifamily. Here's what drives approval and pricing on strip centers, inline retail, and anchored shopping centers.
5–20 tenants, unanchored or locally anchored. Grocery-adjacent or service-oriented. Most common retail loan type in Texas suburban markets.
National or regional anchor (grocery, pharmacy, dollar store) with inline tenants. Anchor credit dramatically impacts pricing — shadow-anchored works too.
Corporate or franchisee lease with absolute NNN terms. Underwritten primarily on tenant credit and lease term remaining, not property cash flow.
Drive-through or dine-in pad sites. Corporate leases price like NNN retail. Franchisee-leased pads require more cash flow analysis — franchise success rate matters.
Retail on ground floor, residential or office above. Underwritten as mixed-use — retail portion analyzed separately; lender looks at blended DSCR across all uses.
Partially vacant strip at below-market rent. Bridge loan funds acquisition and lease-up period; permanent loan placed once stabilized at target occupancy (90%+).
| Anchor Type | Impact on Rate | Impact on LTV | Examples |
|---|---|---|---|
| Investment-Grade National Tier 1 | Best pricing | Up to 75% LTV | Kroger, CVS, Walgreens, Dollar General, Starbucks (corp lease) |
| Regional Grocery / Big-Box Tier 2 | Standard pricing | 70–72% LTV | H-E-B (private, but dominant TX brand), Sprouts, Ross, TJ Maxx |
| Franchisee / Local Anchor Tier 3 | Underwrite cash flow | 65–68% LTV | Regional franchise groups, local gym/grocery, specialty chains |
Enter your property figures to estimate net operating income and DSCR coverage.
Strip center, anchored center, NNN pad, or value-add repositioning — we've closed them all across Texas. Submit your property details and get a term sheet within 24 hours. No obligation, no upfront fees.
Submit Your Deal →Both SBA programs fund owner-occupied commercial real estate — but they work completely differently. Here's the breakdown of each program, who qualifies, and when to use one vs. the other.
SBA 504 is unique — it's not one loan, it's three pieces that close simultaneously. Understanding the structure explains why rates are so attractive:
The SBA CDC (Certified Development Company) portion carries a fixed rate tied to US Treasury bonds — which is why SBA 504 often has the lowest fixed rate available for commercial real estate, frequently below conventional commercial loan rates. The trade-off: longer processing time, owner-occupancy requirement, and a 10-year prepayment penalty on the SBA portion.
We originate SBA 504 and 7(a) loans in Texas — and if you don't qualify for SBA, we have bridge, hard money, and conventional commercial options. Submit your deal and we'll tell you which program fits in 24 hours.
Get Your SBA Quote →I've been in Texas commercial lending since the early 1990s — through the S&L crisis, the dot-com bust, 2008, COVID, and the rate spike of 2022–2023. I've seen every market cycle, and I've funded deals that banks walked away from in every single one of them.
What frustrated me about working inside large institutions was the bureaucracy. A small business owner with a great deal and real equity would get declined because of a DTI ratio calculated off a W-2 they didn't have. A real estate investor with 15 profitable rentals couldn't get loan #16 because of Fannie Mae's arbitrary 10-property cap.
I started Commercial Loans of Texas to be the lender I wished existed when I was a borrower. No committee. No 60-day wait for a "no." No junior underwriters who've never seen a real property. Just a direct decision from someone who's been doing this for three decades.
We focus exclusively on Texas because I know this market. I know what DFW cap rates look like in a correction. I know which Houston submarkets hold value. I know the Texas foreclosure process cold. That local knowledge is what lets me say yes faster and with more confidence than any out-of-state lender can.
"The most important thing in commercial lending isn't the borrower's credit score — it's the deal. A great property with strong equity and a clear exit strategy is fundable. I've said yes to borrowers with 580 credit scores on deals banks wouldn't touch, and I've said no to borrowers with 780 scores on deals that didn't make sense. The property is the collateral. That's what I underwrite."
Submit your deal and Daniel personally reviews every application that comes through. No junior staff, no auto-denials. A real human decision from someone who knows Texas commercial real estate.
Submit Your Deal →Banks and lenders don't use Zillow. Understanding how commercial appraisers value property tells you what your lender will lend against — and why two nearly identical deals can appraise very differently.
The income approach converts a property's net operating income (NOI) into a value estimate using a capitalization rate. It's the primary valuation method for any property that produces rental income: multifamily, retail, office, industrial, mixed-use. Lenders weight this approach most heavily for commercial loans.
Two versions of the income approach:
Direct Capitalization: Divides stabilized NOI by a market cap rate. Best for stable, fully-leased properties with predictable income. Quick and clean — one year of stabilized income, one market rate.
Discounted Cash Flow (DCF): Projects income and expenses over a 5–10 year hold period, adds terminal value (projected sale), and discounts back to present value at an assumed discount rate. Used for value-add properties, lease-up deals, or assets with below-market leases burning off.
The sales comparison approach looks at recent sales of similar properties and adjusts for differences — location, size, age, condition, amenities, lease structure — to arrive at a per-square-foot or per-unit value. Straightforward when comps are abundant; challenging in thin markets.
For commercial properties, the appraiser adjusts on a price-per-SF basis (office, retail, industrial) or price-per-unit basis (multifamily). Each adjustment is documented with market-supported data — not guesses.
The cost approach estimates what it would cost to rebuild the improvements from scratch at today's costs, then deducts physical depreciation, functional obsolescence, and external obsolescence, then adds the land value separately. The logic: a buyer wouldn't pay more for an existing building than it costs to build an equivalent new one.
In commercial real estate, the cost approach carries the least weight for income-producing properties — because market value (what someone pays for the income) can be very different from replacement cost. The cost approach is most relevant for new construction, special-use properties, and insurance valuations.
The final appraised value is a "reconciliation" — the appraiser's weighted judgment of which method best reflects market behavior for that property type. Lenders use the lower of appraised value or purchase price as the basis for loan LTV calculations.
| Property Type | Primary Method | Secondary Check | Weight |
|---|---|---|---|
| Apartment Buildings | Income (Direct Cap) | Sales Comparison | Income 70% / Sales 30% |
| Retail / Strip Center | Income | Sales Comparison | Income 65% / Sales 35% |
| Industrial / Warehouse | Sales Comparison | Income | Sales 60% / Income 40% |
| New Construction | Cost Approach | Income (at stabilization) | Cost primary |
| Vacant Land | Sales Comparison | None (no income) | Sales 100% |
| Special Use (church, school) | Cost Approach | Sales (limited comps) | Cost primary |
We order third-party appraisals on every deal. If you want to discuss how we'll likely value your specific property before you apply, call Daniel directly. 24-hour term sheets, Texas only.
Get a Value Discussion →Common Questions
28 years in Texas commercial lending. We’ve heard every question. Here are the honest answers.
Real Deals We’ve Funded
Every deal below was declined, complicated, or urgent. Here’s how we closed them.
$1,200,000
Strip Mall — Houston, TX
Borrower had a 571 credit score and two prior bank declines. Property was 70% occupied. Needed to close before losing the deal. Conventional lenders wouldn’t touch it.
$2,100,000
Mixed-Use Building — Dallas, TX
Self-employed borrower, LLC ownership, no W-2s. Three years of tax returns showed losses due to depreciation — conventional underwriting was impossible.
$875,000
8-Unit Apartment — San Antonio, TX
Investor owned 11 properties under various LLCs. Debt-to-income ratio was too high for traditional underwriting. Needed financing based on the property’s cash flow, not personal income.
$1,850,000
Industrial Warehouse — Fort Worth, TX
Ground-up construction with no pre-leasing. Traditional banks required 100% pre-lease before funding. Borrower had a signed LOI from a tenant but no executed lease yet.
$390,000
Church Refinance — Austin, TX
Church needed to refinance an adjustable-rate note ballooning in 60 days. Most lenders won’t touch non-profit religious properties. They came to us with 45 days to close.
$340,000
Commercial Rehab — Plano, TX
Investor had a distressed retail property under contract. Needed 90% of purchase price to preserve cash for the rehab. Had done 4 prior flips but no lender would go above 70% LTP.
Have a deal that doesn’t fit the box? Tell us about it. We’ve seen everything.
Get a Same-Day Quote on Your Deal →