Question 1

Which Texas assets are actually ready for permanent debt right now?

Accepted Answer

The ones with occupancy a long-term lender can rely on, and in Texas that skews industrial. Dallas-Fort Worth led the entire United States in industrial 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 on a streak that now runs 16 years. Office is the other story: 19.9% vacancy in DFW, 20.6% in Austin and 27.7% in Houston in the same quarter. So a stabilized industrial or multifamily asset is a permanent-debt conversation today, while an office building with real vacancy usually needs bridge debt and a business plan first, then permanent financing once it performs. One more thing worth saying plainly: there is no citable statewide Texas cap rate series, and we would not underwrite to one if there were. Your rent roll and your comps do the work.

Question 2

Does Texas charge a transfer tax when I buy a commercial asset?

Accepted Answer

No real estate transfer tax, and that is not just current policy. It is constitutionally barred. Article VIII, section 29 of the Texas Constitution, added by the voters in 2015, says that after January 1, 2016 no law may be enacted imposing a transfer tax on a transaction that conveys fee simple title to real property. So the answer does not change with the next session, and on a large placement that is real money: a state that charges even a fraction of a point on a $10M transfer is charging tens of thousands of dollars that Texas does not. The carve-out in that section is a tax on the issuance of title insurance, which is not barred. You still pay county recording fees, and each of the 254 counties runs its own clerk recording practice, so confirm the fee schedule for the county your asset sits in. Talk to your attorney about the specific instruments being recorded.

Question 3

Can I shop title companies to cut closing costs on a Texas permanent loan?

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 can handle your entity structure and an agency lender's document set. Budget the premium as a fixed number and spend your negotiating time elsewhere.

Question 4

How do Texas property taxes hit the NOI a permanent lender underwrites?

Accepted Answer

Assume the tax bill resets after you buy, and assume none of the relief you have read about reaches your asset. Texas trades income tax for property tax: there is no state individual income tax, and the effective property tax rate runs roughly 1.2% to 1.4% depending on the county. On a permanent loan that line is fixed, non-discretionary and locally set for the whole term. 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 10% appraisal cap, so assessed value on your asset can move with the market year over year and protest season becomes a live variable on a long hold. Underwrite the tax line at reassessed value rather than the seller's current bill, and have your CPA or property tax counsel price the specific parcel.

Question 5

Will Texas rent concessions change how an agency lender reads my rent roll?

Accepted Answer

Yes. Underwrite to effective rent, not asking rent. The Dallas Fed reported in 2026 that concessions are widespread across Texas metros, running six to eight weeks free and as much as 10 to 12 weeks in some submarkets, with a higher share of properties offering them in the Texas majors than nationally, and expected to persist into mid-2026. Statewide average apartment rent was $1,452 as of July 2026, down about 1% year over year, so the trend is not closing that gap for you. A rent roll built on advertised rents will not survive a long-term lender's look at what you actually collect, and the shortfall shows up in the debt service coverage test that sizes your loan. Bring trailing 12 collections and the concession schedule to the first call and the placement moves faster.

Question 6

Why does the appraisal carry more weight on a Texas commercial file?

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 that makes comps genuinely harder to source than in a disclosure state, and it pushes more of the value support onto the appraisal itself. Expect the income and the operating history to be underwritten hard, and expect the valuation step to carry real weight on the file. It is also why a clean set of trailing financials is worth assembling before you ask for a quote.

Question 7

What is permanent commercial financing?

Accepted Answer

Permanent (or perm) financing is long-term debt on a stabilized commercial property, the loan you move into once a building is leased up and performing. It replaces short-term bridge or construction debt with a longer fixed term and a lower rate.

Question 8

What channels do you place loans through?

Accepted Answer

We place permanent debt through agency multifamily programs (Fannie Mae and Freddie Mac), insurance companies, and other wholesale lenders. Because we shop multiple sources, we can match your asset to the program with the best long-term terms.

Question 9

What properties qualify?

Accepted Answer

Stabilized multifamily of five units and up, plus mixed-use and other commercial assets with a solid operating history. Agency multifamily in particular looks for occupancy and cash flow that support long-term debt.

Question 10

How is this different from your CRE bridge program?

Accepted Answer

The bridge program is short-term capital to acquire or reposition a property; permanent financing is the long-term exit once it is stabilized. Many investors use both in sequence, bridging to stabilize and then refinancing into permanent debt. We can line up both.

Question 11

What rates and terms can I expect?

Accepted Answer

Permanent commercial rates run well below bridge pricing and move with the agency and wholesale market, on long fixed terms. The exact rate depends on the asset, the program, and current conditions, and we will walk you through the options.

Question 12

How long does a permanent placement take?

Accepted Answer

Plan on several weeks, since agency and wholesale permanent loans require full underwriting, third-party reports, and lender approval. We manage the placement and keep one point of contact on your file from quote to close.

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