PASSYCAPITAL

TN · Memphis

Bridge, Flip & Construction
Loans in Memphis, TN

Bridge, fix & flip, construction, renovation and DSCR loans for residential investment property in Memphis, $1M to $5M, term sheet in 24 to 48 hours. For US investors and foreign nationals on the same terms.

Memphis is a buy-and-hold market. Investors buy single-family houses and small multi-unit buildings, renovate them, lease them, and keep them, often as portfolios of many houses rather than one property at a time. Passy Capital finances that cycle: bridge loans to acquire, fix & flip and renovation loans to fund the purchase and the work, and DSCR loans as the long-term hold once the property is leased. Loans run from $1M to $5M, with a term sheet in 24 to 48 hours and closing in about two weeks on a clean file.

At $1M and above, Memphis deals are usually portfolios: a group of rented houses bought from another investor, a block of properties to renovate and lease, or a set of stabilized rentals refinanced into one DSCR loan to pull capital back out. We also finance new build-to-rent construction in the suburbs, up to 85% of total cost.

Memphis draws rental investors from across the United States and from abroad who buy remotely and work through local property managers. A non-US investor borrows through a US LLC on the same terms as a US investor, with no US credit history required. All loans are business-purpose and for non-owner-occupied property.

Memphis Market Highlights

DSCR as the exit

Memphis investors usually hold. Once a renovated portfolio is leased, a DSCR loan up to 80% LTV refinances it on the properties' rent rather than personal income, returning capital for the next acquisition.

Portfolio lending

We finance groups of rented houses as one loan, from $1M to $5M, whether you are buying an existing portfolio or consolidating rentals you already own.

Renovate, then lease

Fix & flip and renovation loans go up to 90% of total cost, funding the purchase and the work so the property can be brought to rent-ready condition and leased.

Non-judicial foreclosure

Tennessee loans are secured by a deed of trust with a power of sale, and foreclosure generally runs through a trustee's sale rather than a lawsuit.

Recording taxes

Tennessee charges a recordation tax of 37 cents per $100 on a property transfer, and 11.5 cents per $100 of the loan amount (above the first $2,000) when the deed of trust is recorded. Both belong in the closing budget on a purchase and on a refinance.

Residential tax assessment

Tennessee assesses residential property at 25% of appraised value under its constitution, whether the owner lives in it or rents it out. An LLC holding Tennessee property is generally within the state franchise and excise tax; price it in with your tax adviser.

Key Submarkets

Midtown

Cooper-Young

East Memphis

Berclair

Hickory Hill

Binghampton

Whitehaven

Frayser

Cordova

Bartlett

Germantown

Collierville

Property Types We Finance

Single-Family

2-4 Units

SFR Portfolios

Small Multifamily (5-9 Units)

Build-to-Rent

Condo / Townhome

Investing in Memphis from outside the US

If you are buying in Memphis from outside the United States, financing is usually where the process stalls: no Social Security number, no US credit history, and no retail bank willing to underwrite a foreigner. We lend to your US LLC instead, underwrite the property rather than a US profile you have no way to build, and charge no foreign-national premium for it.

Frequently asked questions

Can I refinance a Memphis rental portfolio into one loan?

Yes. Stabilized, leased rentals can be refinanced into a DSCR loan up to 80% LTV, sized on the rent the properties produce. Loans run from $1M to $5M, so a portfolio of houses is the usual way a Memphis investor reaches that size.

Do you finance the purchase and renovation of Memphis rentals?

Yes. A fix & flip or renovation loan funds the purchase and the renovation, up to 90% of total cost. Once the properties are leased, the loan is usually refinanced into a DSCR loan for the long-term hold.

Can a foreign national finance Memphis rental property?

Yes. The loan is made to a US LLC and underwritten on the properties and their rent, not a US credit file, so a non-US investor with no US credit history borrows on the same terms as a US investor. Most remote owners in Memphis, US or foreign, work through a local property manager.

What does the loan cost upfront?

Nothing. Our fee is 1-2% of the loan, paid at closing, with no upfront fees.

Other Cities in Tennessee

We also finance investors across other Tennessee markets.

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