In Lubbock, a bridge loan of $1 million or more almost always covers several properties. Single homes here rarely sell for that much, so large files are usually a builder's package of new duplexes in south Lubbock, a group of student rentals near Texas Tech or a portfolio sold by a long-time local landlord.
In short: LendingStreet offers residential investor bridge loans in Lubbock from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, interest-only terms and closings in as little as 10 days. Larger balances usually need a full valuation and are reviewed case by case. The usual exit is a blanket or individual DSCR refinance once units are leased, or a sale of some or all of the properties.
Lubbock's builders produce new duplexes and small rental homes on the south and southwest edges of the city, and they often sell several at once to investors. A package of six to ten new duplexes easily passes $1.5 million. Near campus, landlords who have owned houses and fourplexes for decades sell them in groups, and national rental owners occasionally sell packages of houses across the city.
High-value single homes in areas like Ransom Canyon or the newest south Lubbock subdivisions can need bridge money for a quick purchase, but those files are less common. Buildings of 9 or more units are commercial; see /commercial.html.
A DSCR lender needs leases to size a loan. New duplexes from a builder are usually vacant at closing, and campus rentals bought in the spring may sit empty until August. A bridge loan covers that gap.
Expect a full appraisal on each property or a portfolio valuation. New duplexes in a single subdivision are easier to value because comparable sales are close, but bulk pricing from a builder may be below individual retail values. Lenders generally size the loan on the lower of price and appraised value.
For older campus-area properties, the appraiser will look closely at condition and legal unit counts, so provide rent rolls, leases and any renovation plans.
On campus-area houses, the appraiser may also ask about occupancy limits and legal unit counts, since those affect market rent.
This example is illustrative and not a quote. An investor buys six new side-by-side duplexes, 12 units in all, from a builder in south Lubbock for $1,860,000. Only two units are leased at closing. The bridge loan is 65% of the price, $1,209,000, interest-only, with estimated monthly interest of about $10,075 while the remaining units lease.
After lease-up, the 12 units rent for $15,000 a month and the six duplexes appraise at $1,950,000. A blanket DSCR refinance at 65% of value is $1,267,500, enough to retire the bridge loan. Estimated principal and interest on a 30-year term is about $8,863, plus about $3,575 in taxes at the full non-homestead rate and $1,320 in insurance, for about $13,758 a month. Portfolio DSCR is about 1.09x.
| Stage | Amount |
|---|---|
| Package price (6 duplexes) | $1,860,000 |
| Bridge loan at 65% | $1,209,000 |
| Estimated monthly bridge interest | $10,075 |
| Value after lease-up | $1,950,000 |
| Blanket DSCR loan at 65% | $1,267,500 |
| Monthly payment with taxes and insurance | $13,758 |
| Combined rent (12 units) | $15,000 |
| Portfolio DSCR | 1.09x |
New construction in Texas carries a full tax bill from the first year, with no homestead exemption for an investor. On the refinance, that tax line limits how much the rent can support, which is why the example uses 65% rather than a higher figure. Sizing the bridge loan to match the expected refinance avoids having to bring cash at the exit.
If you want more leverage on the bridge, plan for a paydown at refinance or a partial sale. See /bridge-to-dscr-loan-guide.html.
A partial sale before refinance is another way to bring the remaining loan in line with what the rent supports.
Packages of duplexes or houses usually exit into a blanket portfolio loan; see /blanket-portfolio-loans-lubbock-tx.html. A 5 to 8 unit building near campus exits into a DSCR loan for that unit count. Jumbo DSCR balances are uncommon in Lubbock and usually mean several properties; see /jumbo-dscr-loans-lubbock-tx.html.
Selling part of a package is also realistic. Duplexes sell to local investors, and campus-area houses can sell to parents buying for students.
The Texas Tech lease cycle matters. A package closed in spring has time to lease for August; one closed in September may carry vacancies until the following year. Build that into your bridge term.
Texas has no state transfer tax, which helps on large closings, but property taxes on a package of new duplexes are substantial. Insurance is also significant on the South Plains because of hail and wind, and builder's warranties do not replace a policy. Lenders require coverage on every property at closing.
Ask the builder about warranty terms and any punch-list items before closing, since open repairs can slow leasing.
On $1M+ bridge loans, underwriters want to see experience owning and leasing rentals, ideally including a lease-up of similar size, and enough cash after closing to cover interest, taxes and vacancy. A local property manager who knows the student market helps.
Send the property list, price, lease status, exit plan and your experience through the form below, or call (877) 298-1001 to get a quote.
If this is your first package, consider starting with fewer units or partnering with an investor who has completed a lease-up in Lubbock. A clear plan for each unit, with target rents and lease dates, makes the file easier to approve.
Yes. Our residential investor bridge loans run from $150,000 to $5M+. In Lubbock, large balances usually cover packages of duplexes or houses.
Rates start from 7.99%, with pricing based on leverage, the properties, your experience and the exit.
Yes. Larger balances usually need a full valuation on each property or across the portfolio.
Yes. That is a common use of bridge money in Lubbock. The exit is a DSCR or blanket refinance once units lease.
Texas property taxes on new construction are high for investors, which limits how much loan the rent supports. Leverage depends on the numbers.
As little as 10 days on some files, though multiple properties can take longer for appraisals and title work.
Yes. Bridge loans are short-term and interest-only.
Yes. Paying off a maturing loan while units lease up is a common use, as long as the exit by refinance or sale is clear.
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