ARC Capital

About ARC Capital

ARC Capital is a Santa Rosa, CA based private lender providing funding in 17 states throughout the country. They offer long term rental property loans, bridge loans, hard money loans for commercial properties, and short term fix and flip loans. Their lending parameters are flexible, including loan amounts ranging from $100,000 to $400,000 with a maximum LTV of 80%, rates ranging between 9% and 13%, and terms between 9 months and 1 year. They do not require borrowers to have a minimum FICO score to obtain a loan. They make loans on all the following types of properties: single family, multi family residences, apartment buildings, office buildings, retail storefronts, hotels, storage facilities, senior facilities, mixed use spaces, warehouses, industrial facilities, and medical buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical

Areas Served: CA, CO, CT, FL, GA, IL, MD, MI, MO, OH, PA, SC, TN, TX, VA, WA, WV

Licenses: CA Bur Real Estate License #01232889, NMLS #375764

Lending Guidelines for ARC Capital

Below are the general loan guidelines published on the ARC Capital 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 ARC Capital.

Loan Example 1

Leola closes on a $270,000 renovation project in Houston, TX, using a hard money loan from ARC Capital. The borrower will be required to bring 15% of the sales price in cash to the closing based on a 85% loan-to-value set by the lending company. This makes the principle note from ARC Capital $229,500. The deal also has these features: 1) a 18 month length, 2) a 11% interest-only note, and 3) a two percent origination fee.

Therefore, the borrower will need to contribute a $40,500 down payment in addition to paying a $4,590 origination fee. Once the deal closes, she will need to pay the lender $2,104 in monthly interest fees, or 11% multiplied by $229,500 divided by 12 months in a year. At the expiration of the note, she sells the renovated property for $337,500. After deducting the $37,868 in interest payments ($2,104 multiplied by 18 months), the $4,590 origination fee, the $229,500 principle on the note, and the $40,500 she brought to the closing, she will make a total profit of $25,043 ($337,500 sales price minus $312,458 in total costs). This profit would be reduced by any rehab costs paid out of pocket.

Loan Example 2

Mitchell locates a duplex in Houston, TX to rehab and re-sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from ARC Capital with the following parameters:

$150,000 sales price
55% loan to value (LTV)
12 month term
13% rate of interest
1% origination fee

Assuming a $210,000 sales price at the end of the 12 month term, the outcome for this deal would look like this:

$210,000 sales price
- $82,500 note principle (55% LTV)
- $67,500 down payment (45% on 55% LTV)
- $825 origination points (1% of the $82,500 principle)
- $10,725 interest payments (12 months x 13% interest)
-----------------------
= $48,450 gross profit (does not include taxes or rehab costs)

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