CalCap Financial

About CalCap Financial

CalCap Financial is a hard money lender headquartered in Pasadena, CA providing loans throughout California, Arizona, Washington, and Colorado. They offer loans for investments properties, fix and flip hard money loans, cash out hard money loans, and builder loans. Their lending parameters are versatile, including terms between 1 year and 2 years and loan amounts up to $1,500,000 with a maximum LTV of 75%. Their loan parameters require a minimum credit rating of 620. The focus of their loans is for single family, multi-family units, and apartments.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, New Construction Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family, Apartment

Areas Served: CA, AZ, WA, CO

Licenses: CA Bureau of Real Estate #01958485, Arizona Department of Financial Institutions #MB-0928556

Lending Guidelines for CalCap Financial

Below are the general loan guidelines published on the CalCap Financial 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 CalCap Financial.

Loan Example 1

Nelson is an investor in Los Angeles, CA. He finds an older property and wants to renovate it and sell it for a profit. The house costs $300,000 but he does not have the full amount so he obtains a fix and flip loan with CalCap Financial. The loan to value (LTV) on the loan is 60%. This means that Nelson will need to bring 40% of the purchase price to the closing and the principle will be $180,000 on the note. The interest rate on the note is 13% for a length of 12 months and the company requires a four point origination fee at the close. The interest is to be paid on a monthly basis and the principle amount will be returned after the sale of the property.

On top of the $7,200 origination fee, Nelson will also fund $120,000 of the purchase with his own money, or 40% of the purchase price. he must then pay $1,950 per month to the lender. If Nelson sells the project for $450,000 after 12 months, he would then make a total profit of $119,400 after subtracting the principle amount of $180,000, the funds contributed at the close of $120,000, the origination points of $7,200, and the total interest payments of $23,400. This profit does not account for rehab costs.

Loan Example 2

Vicki finds a duplex in Los Angeles, CA to renovate and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from CalCap Financial with the following parameters:

$220,000 purchase price
50% loan-to-value (LTV)
6 month term
8% rate of interest
2% origination fee

Assuming a $330,000 sales price after the 6 month term, the final numbers for the project would look like this:

$330,000 sales price
- $110,000 principle on note (50% LTV)
- $110,000 down payment (50% on 50% LTV)
- $2,200 origination fee (2% of the $110,000 principle)
- $4,400 interest payments (6 months x 8% interest)
-----------------------
= $103,400 gross profit (doesn't include taxes or renovation costs)

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