12.8% ROI Performing Note Deal: Mesquite, TX Hard Money Loan Case Study

Looking for a low-risk, high-yield opportunity to deploy your capital or retirement funds? In this episode of The Note Closers Show, Scott Carson breaks down a lucrative, short-term performing hard money loan right outside the thriving Dallas-Fort Worth metroplex in Mesquite, Texas! With a massive equity cushion, a strong 650-FICO borrower making 20% down, and a 49% Investment-to-Value (ITV) position, this short-term first lien note offers an incredible double-digit return over an 8-month hold period.

Whether you’re looking to get lazy money off the sidelines or want to see how real note investors calculate real returns and structure low-LTV deals, this case study is packed with practical numbers and actionable strategies!

Detailed Episode Bullet Points

• Property & Location Profile: A 1,854 sq. ft., 3-bed/2-bath single-family home (built in 1998) located in Mesquite, Texas—a high-growth corridor just east of Dallas along I-30.
• Valuation & Equity: Current fair market value sits between $318,000 and $320,000. The unpaid principal balance (UPB) is just $156,800, placing your investment at a remarkably safe 49% Loan-to-Value/ITV.
• Loan Structure: 1-year interest-only loan at 13% interest, generating $1,699/month in passive cash flow. Originated in April 2026 and maturing in May 2027 with a strong payment track record.
• Return Calculations: Total investment of $158,368 yields $13,005.92 in remaining cash flow over 8 months, resulting in an annualized return of 12.87%.
• Borrower Credentials: The rehab investor put 20% down into the property, holds a 650 credit score, and is actively rehabbing multiple DFW properties.
• Downside Protection & Exit Strategies: If the borrower defaults, Texas offers a fast