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Large Bridge · Waco

Large Bridge Loans in Waco, $1M to $5M+

A $1M+ bridge loan in Waco rarely buys a single house. Here, large balances usually mean a package of rental homes, a group of student buildings near Baylor, or a portfolio of short-term rentals changing hands at once.

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In short: LendingStreet provides residential investor bridge loans in Waco from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, short interest-only terms and closings in as little as 10 days when the file is ready. Because Waco homes are moderately priced, large balances here usually cover packages of homes or small buildings rather than one property. Larger balances usually need a full valuation, and the exit is a sale, DSCR loans or a blanket portfolio loan.

What $1M+ buys in Waco

With most Waco-area rentals priced well under $400,000, a $1M to $5M bridge loan typically finances eight to twenty homes, a mix of student fourplexes and 5-8 unit buildings near Baylor, or a portfolio of short-term rentals near the Silos. Higher-value single homes do exist in Woodway, along the Brazos and around Lake Waco, but they are a small share of large bridge activity.

Bridge financing helps when a seller wants one closing for the whole group, when properties need turnover work before they qualify for long-term loans, or when a maturing loan must be paid off quickly.

ScenarioTypical sizeCommon exit
Package of 8-20 single-family rentals$1M to $4MBlanket portfolio loan or individual DSCR loans
Baylor-area student buildings$1.5M to $5M+5-8 unit and 2-4 unit DSCR loans
STR portfolio near the Silos$1M to $3MSTR DSCR loans or sale
Payoff of a maturing loanMatches the payoffDSCR or blanket after stabilization

Student housing near Baylor

Baylor's enrollment supports a deep market of off-campus rentals. Small buildings of up to eight units within walking distance of campus trade among investors, often in groups. Pre-leasing for the next academic year starts early, and buyers who close in winter or spring can lock in fall leases before the refinance.

Summer is the natural renovation window. A bridge loan that closes in May leaves time to update units before August move-in.

Parking, life-safety items and the condition of shared stairways and laundry areas matter on student buildings. Budget for them in the renovation plan, since the appraiser and insurer will both look at them.

Worked example: two student buildings and three houses

This example is illustrative and not a quote. An investor buys a six-unit and an eight-unit building near Baylor plus three nearby houses for $2,250,000 from one seller. A bridge loan of $1,690,000, about 75% of the price, closes the deal. Estimated interest-only payments run about $14,788 a month through a summer renovation.

After pre-leasing, the 14 apartment units rent for about $950 each and the houses for about $1,800, for $18,700 a month. At an appraised $2,500,000, refinancing at 70% of value gives $1,750,000, enough to repay the bridge. Estimated principal and interest is about $11,643, taxes at the full Texas rate are $4,800 and insurance is $1,300, for a total of about $17,743 and a DSCR of about 1.05x.

ItemBridge periodDSCR exit
Loan amount$1,690,000$1,750,000
Payment typeInterest-only30-year amortizing
Estimated monthly payment$14,788$11,643
Taxes and insurancePaid by owner$6,100
Monthly rentPartial during renovation$18,700
DSCRNot usedAbout 1.05x

Taxes decide the exit

Property taxes in the example take about a quarter of the rent. Texas rates are high, investors get no homestead exemption, and McLennan County values can rise after a sale. Size the exit on the full combined rate and on values close to your purchase price, not on the seller's bills. A package bought from a long-time owner may have been assessed below market for years, and a sale often brings the next assessment closer to the price.

Values can be protested each spring, but the refinance will be underwritten on the current bill.

Valuation on a package

On $1M+ loans, expect full appraisals. Each property is valued separately, and the loan is sized on the group. Waco comparables for student buildings and 5-8 unit properties can be thin, so appraisers may use income data as well as sales. Order valuations as soon as the contract is signed.

Many programs size the loan on the lower of cost or value. If you are buying the package at a discount, plan cash to close on the contract price.

Insurance, hail and older buildings

Hail and wind drive most insurance costs in Central Texas, and older student buildings may have aging roofs and electrical systems. Each property needs coverage bound before funding, and vacant units under renovation may need a vacant or builder's risk policy.

Start quotes right away. On a 14-unit package, getting every policy in place is often the longest part of a quick close.

Some investors place the whole package with one carrier from the start, which makes it easier to roll coverage into the long-term loans later. Ask for wind and hail deductibles in dollars as well as percentages so you know the real exposure.

Timeline and carrying costs

Closings can happen in as little as 10 days when title is clean, valuations are in and insurance is bound. Interest-only carry on a $1.5M+ loan adds up, so plan the renovation and lease-up schedule with some slack. Texas has no state transfer tax on deeds, which keeps closing costs on a large package lower than in many states.

Investors with experience owning or renovating similar properties generally see stronger terms.

Choosing the exit

For five or more homes, a blanket portfolio loan can refinance them together on combined cash flow. Student buildings can move into individual 2-4 unit and 5-8 unit DSCR loans. If the plan is to sell, look at how long similar Waco properties take to sell and plan the bridge term accordingly. Student buildings tend to sell best in the spring, when buyers can see signed leases for the next school year.

Deals under $1M are covered by our standard Waco bridge loans. Heavier rehab projects may fit better as fix and flip loans, which can fund part of the renovation budget.

Talk to us about your Waco package

Send the property list, price, rents and exit plan. We will size the bridge and the exit together. Call (877) 298-1001 or use the form below. See also our Texas large bridge page and Waco jumbo DSCR options.

Common questions

Can I get a $1M+ bridge loan in Waco?

Yes. Our residential investor bridge program runs from $150,000 to $5M+, and larger balances are reviewed case by case.

What usually makes up a large Waco bridge loan?

Packages of homes, student buildings near Baylor or STR portfolios, since single homes are moderately priced.

What rates apply?

Rates start from 7.99% and depend on leverage, property type and experience.

Is a full appraisal required?

On larger balances, usually yes, with each property valued.

Can I bridge 5-8 unit student buildings?

Yes. Buildings up to 8 units are residential investment properties.

How do I exit the bridge?

By sale, individual DSCR loans or a blanket portfolio loan for five or more properties.

How fast can it close?

As little as 10 days with clean title, valuations and bound insurance.

Do Texas property taxes affect the bridge?

They affect the exit most. Size the refinance on the full investor tax rate.

Large bridge loans in TexasJumbo DSCR loans in WacoBridge loans in WacoBridge loans from $500K to $5 millionBridge to DSCR loan guideBlanket portfolio loans in Waco5-8 unit DSCR loans in Waco

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