Terms at a Glance
The final terms on any specific loan will depend on the property, Larry’s valuation of it, and your history as a borrower.
| Term | Larry the Lender |
|---|---|
| Interest rate | 12.99% standard |
| Payments | Interest-only; principal due at payoff |
| Interest charged on | Funds you’ve drawn only |
| Loan term | 6 or 12 months, renewable |
| Points | 2 on a 6-month loan, 3 on a 12-month loan |
| Minimum loan | $100,000 |
| Loan-to-value | Typically 70% to 80% for first-time borrowers; higher for repeat borrowers and prime properties; 40% to 50% on raw land |
| How value is set | Larry’s own valuation from comparable sales (no after-repair value) |
| Application fee | None |
| Appraisal fee | None |
| Prepayment penalty | None, and no minimum interest |
| Late fee | 10% on payments received after the 10th |
| Credit | No hard credit pull; personal guarantee required |
| Decision and closing | Same-day decision; closing as soon as the next day |
| Property types | Any investment property |
| Not offered | Owner-occupied loans, home equity loans |
| Where | Houston and Austin mainly; larger loans across Texas |
The Interest Rate
Larry’s standard rate is 12.99% a year. Payments are interest-only, which means you’re not paying down principal along the way, and the full balance comes due when you sell the property, refinance it, or pay the loan off some other way.
To get the monthly payment, multiply the loan amount by 12.99% and divide by 12. A $300,000 loan comes to $3,247.50 a month.
Interest is charged only on money you’ve actually drawn, not on the full amount approved. It stops the day you pay off. There’s no minimum interest, so a loan paid off in two months costs two months of interest.
Points
Points are a one-time fee, paid at the start, equal to a percentage of the loan amount. Larry charges 2 points on a 6-month loan and 3 points on a 12-month loan. On $300,000, that’s $6,000 or $9,000.
Points don’t shrink if you pay early, which is why the term you pick matters.
Term and Renewals
Loans run 6 or 12 months, which covers the timeline on most flips and gives you room on a buy, fix, and refinance plan for a rental if the contractor, the lease-up, and the refinance all go roughly to schedule.
If a project runs long, Larry’s loans are renewable. Ask Larry what a renewal costs before you count on one, so you’re comparing real numbers.
Fees You Won't Pay, and The Ones You Will
No application fee. No appraisal fee, because Larry values the property himself. And no prepayment penalty, ever.
What you will pay is the points, the interest for the months you hold the loan, and third-party closing costs like title and recording. Late payments carry a 10% late fee if they come in after the 10th of the month.
How Much You Can Borrow
Larry sets the property’s value himself, based on comparable sales, and he doesn’t lend on after-repair value, so the number that counts is what the property is worth the day you close, not what it might be worth once the work is done.
First-time borrowers typically borrow 70% to 80% of that value. Repeat borrowers, prime properties, and borrowers with good credit can go higher, and raw land usually sits at 40% to 50%. The minimum loan is $100,000.
Who These Loans Are For
Larry lends on investment property of any type, from single-family flips to commercial buildings to land. He doesn’t make owner-occupied loans or home equity loans, and every borrower needs to own a separate homestead.
There’s no hard credit pull. You do sign a personal guarantee. Decisions come the same day, and closing can happen as soon as the next day.
Points: 3 x $3,000 = $9,000
Interest: $3,247.50 a month x 9 = $29,227.50
Total cost of the loan: $38,227.50
Because there’s no prepayment penalty, you never pay for months ten through twelve. Add title and closing costs, and that’s the full cost of the money. Want to run your own numbers?
Have a deal in mind?
