Capital Fund 1

About Capital Fund 1

Capital Fund 1 is a Scottsdale, AZ-based hard money lender who offers funding throughout the Southwest. CF1 provides lending solutions to fit the needs of real estate investors, including new construction loans, commercial loans, refinancing, investment property loans, and short-term fix & flip loans. CF1's loan amounts vary up to $10,000,000, and rates begin in the single digits from 7.99% to 11.99%. Loan terms range between 6 months to 2 years and often with NO pre-payment penalties. CF1 lends on non-owner-occupied investment real estate investments. These investment property types include:•Single-Family Residences•Multi-family units •Apartments•Offices•Commercial buildings (i.e., warehouse, industrial, medical storage)•Retail •Hotels•Senior Living Communities•Mixed-use•Churches•Construction (i.e., ground-up, subdivision model homes) •Land

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, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Land, Church, Warehouse, Industrial, Medical

Areas Served: AZ, CO, OR, TX

Licenses: BK-0917799, NMLS# 396288

Lending Guidelines for Capital Fund 1

Below are the general loan guidelines published on the Capital Fund 1 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 Fund 1.

Loan Example 1

Mona closes on a $190,000 renovation project in Phoenix, AZ, using a fix and flip loan from Capital Fund 1. Since the lender sets a 85% loan to value, Mona will be required to put 15% down so the principle amount of the note will be $161,500. The note is interest only, with monthly payments, and is for 12 months at 9% interest with 3 origination points to be paid when the deal closes.

On top of the $4,845 origination fee, Mona will also need to fund $28,500 of the purchase with her own money, or 15% of the sales price. Once the loan closes, she will need to pay the lender $1,211 in monthly interest fees, or 9% multiplied times $161,500 divided by 12 months in a year. Mona's plan is to complete the house by the end of the 12 months and re-sell it for $228,000. If she succeeds she will collect a profit of $18,620 ($228,000 price - $161,500 principle - $28,500 funds brough to closing - $4,845 origination fee - $14,535 in total interest payments.

Loan Example 2

Chester takes out a private money loan from Capital Fund 1 so he can renovate a house to re-sell in Phoenix, AZ. The loan has the following terms:

a) A $400,000 purchase price, b) a 65% loan-to-value (LTV), c) a 18 month term, d) a 13% interest rate, and e) a 1% origination fee.

Assuming a $480,000 sales price after the 18 month term, the numbers for the project would look like the following:

$480,000 sales price
- $260,000 principle (65% LTV)
- $140,000 cash paid at closing (35% on 65% LTV)
- $2,600 origination fee (1% of the $260,000 principle)
- $50,700 interest payments (18 months x 13% interest)
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= $26,700 total profit (doesn't include taxes or renovation costs)