Active Funding Group

About Active Funding Group

Headquartered in Scottsdale, AZ, Active Funding Group is a private money lender offering loans in Arizona. They provide loans for many different situations and needs, including fix-and-flip hard money loans and rental property loans. They issue loans with a maximum LTV of 65% and rates from 12%. The focus of their lending is for single family homes and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: AZ

Lending Guidelines for Active Funding Group

Below are the general loan guidelines published on the Active Funding Group website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Active Funding Group.

Loan Example 1

Ellen is a house flipper in Phoenix, AZ. She discovers a run-down property for sale and wants to rehab it and flip it for a profit. The house costs $240,000 but she does not have the full amount so she obtains a hard money loan with Active Funding Group. The lender agrees to write a loan with a 60% loan to value (LTV) so they are willing to loan $144,000 on the house. The parameters of the loan dictate a 13% note for 18 months. They also require a 1 point origination fee, that will also be paid when the property closes.

The borrower will need to fund a total of $32,400 up front to pay the $96,000 down payment plus the $1,440 origination fee. The monthly interest only payments will then be $1,560 to Active Funding Group. At the end of the loan, she sells the renovated house for $288,000. After subtracting the $28,080 in interest expenses ($1,560 multiplied by 18 months), the $1,440 origination fee, the $144,000 principle on the loan, and the $96,000 she contributed to the closing, she will earn a total profit of $18,480 ($288,000 price minus $269,520 in total costs). This profit would be reduced by any building costs paid out of pocket.

Loan Example 2

Active Funding Group makes a hard money loan to Gabriela for a remodeling project in Phoenix, AZ. The loan includes the following:

a) A $400,000 purchase price, b) a 60% loan-to-value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 2% origination fee.

Gabriela intends to list the property at the end of the term for $480,000. If she achieves this goal, the deal numbers would be the following:

$480,000 sales price
- $240,000 principle (60% LTV)
- $160,000 cash paid at closing (40% on 60% LTV)
- $4,800 origination points (2% of the $240,000 principle amount)
- $33,600 interest payments (12 months x 14% interest)
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= $41,600 total profit (doesn't include taxes or renovation costs)