Question 1

Is there a statewide Texas CRE market I can underwrite against?

Accepted Answer

No. Texas commercial is effectively the sum of its metros, and the asset class matters more than the state line. On the industrial side, Dallas-Fort Worth led the entire United States in both supply and demand in the second quarter of 2026, with 17.9 million square feet of year-to-date net absorption against 9.3% vacancy, and Houston added 5.8 million square feet of positive absorption at 7.6% vacancy. Office is the other story: 19.9% vacancy in DFW, 20.6% in Austin, and 27.7% in Houston as of the second quarter of 2026. So office bridge in Texas is a flight-to-quality play on a specific building, not a blanket bet on the state. There is no citable statewide cap rate series, and we would not underwrite to one if there were. We underwrite your rent roll, your leasing budget, and comps on your asset.

Question 2

I am buying a commercial asset at a Texas foreclosure sale. How much runway do I have?

Accepted Answer

Less than you think, and the date is fixed. Texas forecloses non-judicially under Property Code section 51.002. Sales are held between 10 a.m. and 4 p.m. on the first Tuesday of the month at the county courthouse, and on the first Wednesday when the first Tuesday falls on January 1 or July 4. Notice of sale, including the earliest time the sale will begin, has to go out at least 21 days ahead by courthouse posting, a filing with the county clerk, and certified mail to each debtor. The extra 20-day cure notice applies only where the property is the debtor's residence, so on commercial and non-owner-occupied collateral the practical floor from notice to sale is roughly 21 days. That is one auction day a month and about three weeks of warning. Funds have to be committed before the first Tuesday, not after, which is why we would rather tell you straight on day one whether we can hit your date. Talk to your attorney about the specific sale and the title you are taking.

Question 3

Can I shop title companies to cut closing costs on a Texas commercial deal?

Accepted Answer

Not on the premium. Texas is one of the few states where the government sets the title rate. Insurance Code section 2703.151 requires the Insurance Commissioner to fix and promulgate title insurance premium rates, so for a given policy amount the basic premium is identical at every title company in Texas. Commissioner's Order No. 2025-9697 cut those basic premium rates 6.2% effective March 1, 2026. TDI's own worked example: a $268,500 policy carries a $1,612 basic premium. What you are actually shopping for is escrow service, endorsements, closing-fee items, and whether the company will handle your entity structure. Budget the premium as a fixed number and spend your negotiating time elsewhere.

Question 4

How do Texas property taxes hit a bridge pro forma?

Accepted Answer

Texas trades income tax for property tax, and none of the relief you read about reaches your deal. There is no state individual income tax, and the effective property tax rate runs about 1.2% to 1.4% depending on the county. Property tax is a fixed, non-discretionary carry line on every month of a bridge term, it is set locally, and it does not fall while the asset sits vacant during lease-up. The 2025 relief package is homeowner relief: SB 4 and Proposition 13 raised the school district homestead exemption to $140,000 for the 2026 tax year, and homestead exemptions do not apply to non-owner-occupied investment property. Neither does the homestead appraisal cap, so assessed value on your asset can move with the market year over year and protest season becomes a real carry variable. Underwrite the tax line at reassessed value, not at the seller's current bill, and talk to your CPA or property tax counsel about the specific parcel.

Question 5

What should I use for rents on a Texas multifamily lease-up bridge?

Accepted Answer

Effective rent, not asking rent. The Dallas Fed reported in 2026 that concessions are widespread across Texas metros and expected to persist into mid-2026, with a higher share of properties offering them in the Texas majors than nationally. A pro forma built on advertised rents will overstate income on much of this market, and the gap shows up first in a debt yield test at takeout. Statewide average apartment rent was $1,452 as of July 2026, down about 1% year over year, so the trend is not doing the work for you either. Build the lease-up schedule on net effective rent, size the term for the absorption you actually expect, and let the bridge run 24 to 36 months rather than 12 if the plan needs it.

Question 6

Why does a Texas bridge deal lean harder on the appraisal than one in another state?

Accepted Answer

Because Texas is a non-disclosure state. No statute compels reporting a sale price to the county appraisal district, prices are not recorded on deeds, and you cannot pull them from a county clerk search. Appraisal districts work from voluntary submissions by agents, title companies and owners, plus MLS data obtained by agreement. For commercial and off-market deals in particular, that makes comps genuinely harder to source than in a disclosure state, and it pushes more of the value support onto the appraisal and BPO work. Expect us to underwrite the income and the business plan hard, and expect the valuation step to carry real weight on the file.

Question 7

What can a commercial bridge loan be used for?

Accepted Answer

Bridge capital is for repositioning or stabilizing a commercial property before permanent financing: value-add, lease-up, a partner buyout, or pulling equity out through a cash-out. We lend across property types on terms up to 24 to 36 months, with loans up to $10M.

Question 8

What rates, leverage, and terms should I expect?

Accepted Answer

Our commercial bridge pricing starts around 9%, interest-only, up to roughly 75% loan-to-value, on terms up to 24 to 36 months. Published bridge pricing generally runs 8% to 12% with 1 to 3 points. Final terms depend on the asset, the business plan, and sponsor strength.

Question 9

How fast can a commercial bridge loan close?

Accepted Answer

Commercial deals usually close in 2 to 4 weeks. They take a little longer than residential because of the appraisal, the rent roll and operating-statement review, and any third-party reports. We move as fast as the diligence allows and keep one point of contact on your file.

Question 10

Do I need positive cash flow (DSCR) to qualify?

Accepted Answer

Not necessarily at closing. Bridge loans are often underwritten interest-only to the as-stabilized business plan rather than a minimum in-place DSCR, since the property is being repositioned. We do want to see a credible path to stabilization and enough in-place income or reserves to carry the loan.

Question 11

What documents do you need for a commercial bridge request?

Accepted Answer

Typically the purchase contract or current debt, a rent roll and trailing-12-month operating statement, your business plan and renovation budget, and sponsor financials. Larger assets may also need a property condition report and an environmental review. We will give you a clear checklist up front.

Question 12

Is the loan recourse, and is cash-out available?

Accepted Answer

Most bridge loans are recourse with a personal guarantee, while lower-leverage non-recourse can be possible on stronger assets. Cash-out is available when there is equity to support it. We structure recourse and leverage around the specific deal.

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