Capital Benefit

About Capital Benefit

Capital Benefit is a Newport Beach, CA based private lender who offers loans throughout California. They offer builder loans, fix-and-flip loans, commercial loans, short term loans, cash out hard money loans, and investment property loans. Their lending guidelines are versatile, including rates starting at 10% . They offer loans on various property types, including single family residences, multi family, mixed use spaces, retail storefronts, office buildings, and industrial facilities.

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

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

Areas Served: CA

Licenses: Real Estate Broker License #01876453 Nationwide Mortgage, Licensing System ID 254002

Lending Guidelines for Capital Benefit

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

Loan Example 1

Debra takes a fix and flip loan from Capital Benefit in order to renovate a townhouse to flip in Los Angeles, CA. The sales price of the property is $160,000. The borrower will need to bring 35% of the purchase price in cash to closing based on a 65% loan to value stipulated by the lender. This makes the loan principle from Capital Benefit $104,000. The terms of the loan dictate a 8% note for 18 months. They also require a 3 point origination fee, which will also have to be paid upon closing.

The borrower will have to contribute a total of $32,400 up front to pay the $56,000 down payment plus the $3,120 origination fee. The monthly interest-only payments will then total $693 to Capital Benefit. If Debra achieves her goal of a $232,000 total sales price at the end of the loan term, she would earn a gross profit of $56,400 after repaying the principle on the note and subtracting the money she paid at closing, the origination fee, and the monthly interest payments.

Loan Example 2

Samuel takes a loan from Capital Benefit so he can rehab a house to resell in Los Angeles, CA. The deal has the following terms:

$170,000 sales price
75% loan-to-value (LTV)
18 month term
12% rate of interest
5% origination fee

Assuming a $229,500 sales price after the 18 month term, the numbers for this project would look like this:

$229,500 sales price
- $127,500 note principle (75% LTV)
- $42,500 down payment (25% on 75% LTV)
- $6,375 origination points (5% of the $127,500 principle amount)
- $22,950 interest payments (18 months x 12% interest)
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= $30,175 gross profit (does not include taxes or rehab costs)

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