Bay Area Capital Funding

About Bay Area Capital Funding

Bay Area Capital Funding is an asset-based lender headquartered in San Carlos, CA offering loans throughout San Francisco, Oakland, and San Jose. They provide short term loans, fix and flip hard money loans, investment property loans, cash out hard money loans, and hard money loans for commercial properties. Their lending guidelines are flexible, including loans with a maximum LTV of 65% and rates ranging between 9% and 10%. They make loans on the following property types: single family homes, multi family residences, office units, retail spaces, industrial buildings, and mixed use spaces.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Office, Retail, Industrial, Mixed Use

Areas Served: San Francisco, Oakland, San Jose

Lending Guidelines for Bay Area Capital Funding

Below are the general loan guidelines published on the Bay Area Capital Funding 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 Bay Area Capital Funding.

Loan Example 1

Bay Area Capital Funding makes a private money loan to Margie for a renovation project in San Francisco, CA, on a property that is listed for $350,000. The lender agrees to make a note with a 55% loan to value (LTV) so they are willing to loan $192,500 on the project. The rate on the loan is 13% for a term of 12 months and the company requires a three point origination fee at closing. The interest is to be paid monthly and the principle will be returned after the sale of the property.

Margie will need to contribute $157,500 to closing (45% on the 55% loan to value), plus she will have to pay the $5,775 origination fee. After the deal is executed and Margie takes over the property, she will begin making payments each month of $2,085 to Bay Area Capital Funding ($192,500 principle x 13% / 12 months). At the end of the note, she sells the renovated property for $525,000. After deducting the $25,025 in interest expenses ($2,085 multiplied times 12 months), the $5,775 origination fee, the $192,500 principle on the note, and the $157,500 she brought to the closing, she will earn a gross profit of $144,200 ($525,000 sales price minus $380,800 in total costs). This profit would be reduced by any building costs paid out of pocket.

Loan Example 2

Bay Area Capital Funding makes a hard money loan to Doreen for a renovation project in San Francisco, CA. The loan dictates the following:

$370,000 purchase price
70% loan-to-value (LTV)
6 month term
13% interest rate
2% origination fee

Based on a $499,500 sales price at the end of the 6 month term, the outcome for the deal would look like this:

$499,500 sales price
- $259,000 note principle (70% LTV)
- $111,000 down payment (30% on 70% LTV)
- $5,180 origination points (2% of the $259,000 principle amount)
- $16,835 total interest paid (6 months x 13% interest)
-----------------------
= $107,485 gross profit (doesn't include taxes or renovation costs)