Capital Financial

About Capital Financial

Capital Financial is a private lender who provides funding throughout the country. Their lending focus is primarily on commercial loans. Their lending guidelines are versatile, including terms up to 2 years. They provide loans on all of the following property types: multi family, retail spaces, office buildings, apartments, industrial buildings, storage facilities, and warehouses.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Retail, Office, Apartment, Industrial, Storage, Warehouse

Areas Served: National

Lending Guidelines for Capital Financial

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

Loan Example 1

To facilitate his business, Terrance decides to purchase a new retail space. After he is turned down for standard loan from his credit union, he applies for a commercial private money loan from Capital Financial. The lender contracts to a 50% loan-to-value (LTV) on the sale and the property costs $220,000, so they will contribute $110,000 and Terrance will be responsible for the other $110,000. The loan also specifies a 6 month length, a 14% interest rate, interest only payments made each month with a balloon payment when the note expires (with no pre-payment penalty), and a 1 percent origination fee. By the parameters of this loan, Terrance will be required to pay an origination fee of $1,100 at the close (1% x $110,000 principle) and will then make payments of $1,283 monthly ($110,000 principle x 14% interest / 12 months per year). he will also make a balloon payment of the $110,000 principle when the loan expires, or before if he chooses.

Loan Example 2

Sherry is a real estate investor in Boca Raton, FL. She purchases a run-down house for a rehab project and takes out a private money loan from Capital Financial with the following paramters:

$350,000 purchase price
55% loan to value (LTV)
18 month term
8% interest rate
2% origination fee

Assuming a $472,500 sales price after the 18 month term, the final numbers for this project would look like the following:

$472,500 sales price
- $192,500 principle on note (55% LTV)
- $157,500 cash paid at closing (45% on 55% LTV)
- $3,850 origination points (2% of the $192,500 principle amount)
- $23,100 total interest paid (18 months x 8% interest)
-----------------------
= $95,550 gross profit (doesn't include taxes or renovation costs)

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