Fort Worth investors buy everything from neighborhood retail on Camp Bowie Boulevard to apartment buildings near the Medical District and flex space off Loop 820. The loan on each one comes down to the same question: what does the property earn after Tarrant County taxes and Texas insurance, and how much debt can that income carry?
In short: LendingStreet makes commercial real estate loans in Fort Worth for investors buying or refinancing 9+ unit multifamily, mixed-use, retail, office, flex and light industrial, and self-storage property. Loans run up to $5M+ with custom terms, up to 75% LTV on acquisitions, and are sized on the property's net operating income (NOI), debt service coverage ratio (DSCR) and loan-to-value. The property must be cash-flow positive, and LLC and other entity borrowers are standard.
Our commercial loans cover income property that is leased to tenants, not occupied by the borrower's own business. Our investor loans are business-purpose loans on non-owner-occupied property.
If the building has 1 to 8 residential units, it is a residential loan, not a commercial one. Fort Worth fourplexes and small 5 to 8 unit buildings are covered on our 5-8 unit and 2-4 unit Fort Worth pages, which use a different, rent-based process.
| Property type | Where investors often look in Fort Worth | What underwriting focuses on |
|---|---|---|
| 9+ unit multifamily | Near Southside, TCU area, east and south side garden complexes | Rent roll, trailing operating statements, deferred maintenance |
| Mixed-use | Magnolia Avenue, West 7th, downtown edges | Blended NOI, commercial share, lease terms |
| Neighborhood retail | Camp Bowie Boulevard, Hulen Street area, suburban strips | Tenant mix, lease expirations, who pays taxes and insurance |
| Small office | Near Southside medical-adjacent space, suburban office | Occupancy, rollover, tenant credit |
| Flex and light industrial | Loop 820, I-35W, the Alliance area in north Fort Worth | Lease length, clear use, environmental history |
| Self-storage | Growing suburban edges of Tarrant County | Occupancy history, street rates, management |
Commercial loans are sized on the property, not on your personal income. Underwriting starts with the rent roll and leases, applies a vacancy and credit loss assumption, then subtracts operating costs to reach NOI. Property taxes, insurance, repairs, management and reserves all come out before debt service.
Two tests then run side by side. The LTV test caps the loan at a share of the appraised value, up to 75% on acquisitions. The DSCR test caps the loan so NOI covers the estimated annual debt service with a cushion. Whichever test produces the smaller loan sets the amount. In Fort Worth, with high property taxes and rising insurance, the DSCR test is often the one that binds.
This example is illustrative and not a quote. The figures are assumptions chosen to show the math, not Fort Worth market data.
An investor buys a four-bay neighborhood retail strip for $2,400,000. Scheduled rent is $252,000 a year on gross leases. Underwriting applies an assumed 7% vacancy and credit loss, leaving $234,360 of effective income. After $42,000 in property taxes, $12,500 in insurance, $20,000 in repairs and management and $6,000 in reserves, NOI is $153,860.
At 75% LTV the loan could reach $1,800,000, but the DSCR test at a 1.25x target holds it to $1,415,000. Estimated annual debt service is $122,733, DSCR is 1.25x and LTV is 59%. The investor brings $985,000 plus closing costs.
| Item | Amount |
|---|---|
| Purchase price | $2,400,000 |
| Scheduled annual rent | $252,000 |
| Effective income after 7% vacancy | $234,360 |
| Property taxes | $42,000 |
| Insurance | $12,500 |
| Repairs and management | $20,000 |
| Reserves | $6,000 |
| NOI | $153,860 |
| Loan at 75% LTV test | $1,800,000 |
| Loan at 1.25x DSCR test | $1,415,000 |
| Estimated annual debt service | $122,733 |
| DSCR | 1.25x |
| LTV | 59% |
Downtown and the Sundance Square area anchor office and ground-floor retail. Just south, the Near Southside, including Magnolia Avenue and the Medical District, mixes restaurants, small offices and apartments. West of downtown, the West 7th and Cultural District area has newer mixed-use and multifamily, while Camp Bowie Boulevard carries older storefront retail.
North of downtown, the Stockyards and the North Side draw visitors and small retail. Far north Fort Worth along I-35W and the Alliance area is known for logistics and industrial, and smaller flex buildings sit along Loop 820 and the highways around it. Each area has its own tenant base, lease norms and comps, so the same cap rate assumption will not work everywhere.
Texas has no state income tax, so local property taxes carry much of the load. A Fort Worth parcel is typically taxed by the county, the city, a school district, Tarrant County College and the hospital district, and the appraisal district sets the value those rates apply to. Fort Worth city limits reach into more than one county, so confirm which appraisal district values your parcel.
Owners can protest the appraised value each year, and many commercial owners do. Underwriting usually budgets taxes on the purchase price or appraised value rather than the seller's old bill, because a sale often leads to a higher assessment.
North Texas sees frequent hail and severe wind. Commercial premiums and wind and hail deductibles have climbed, and a flat roof near the end of its life can change the quote. Get an insurance quote early; it is often one of the largest NOI lines.
Texas is a non-disclosure state, so sale prices are not public record. Appraisers rely on sales they can verify through interviews and private data, plus the income approach, and comparable sales for small Fort Worth commercial buildings can be thin.
That makes your own operating history more important. Clean trailing statements, current leases and a rent roll that ties to bank deposits help support value when comps are limited.
Commercial loans take longer than residential loans, and it is better to plan for that than to be surprised. A full appraisal, a property condition review and an environmental report are common, and lease review takes time when a building has several tenants.
Build the timeline into your contract. Ask for a feasibility period long enough to order third-party reports, and share documents early so review can start while the appraisal is underway.
A complete package gets a faster, clearer answer. Have these items ready when you request a quote.
Send the address, property type, price, rent roll and your target loan amount through the form below, or call (877) 298-1001. We will run NOI on realistic Tarrant County taxes and insurance, test the loan on both DSCR and LTV, and come back with terms set for that deal. Recourse varies by program, and some programs ask you to sign for the loan personally.
Apartment buildings with 9 or more units, mixed-use buildings, retail, office, flex and light industrial, self-storage and similar income property. Buildings with 1 to 8 units are residential loans.
Loans run up to $5M+, with small-balance programs roughly $500K to $5M. Acquisitions go up to 75% LTV, but the DSCR test often sets a lower amount once taxes and insurance are counted.
No. These loans are for investors leasing property to tenants. Our investor loans are business-purpose loans on non-owner-occupied property.
Usually because NOI cannot cover the debt service on a larger loan. High property taxes and insurance reduce NOI, so the DSCR test binds before the LTV cap.
Yes. LLC and other entity borrowers are standard for commercial loans. Bring formation documents and an operating agreement.
Longer than a residential loan. Appraisal, property condition and environmental reports, plus lease review, are common, so build enough time into your contract.
Not usually. Permanent loans need a cash-flow-positive, stabilized property. A commercial bridge loan can fund lease-up or renovation first.
Many owners do each year. Talk with your tax advisor and confirm deadlines with the appraisal district, and underwrite on a realistic tax figure either way.
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