Capital Resources 4U

About Capital Resources 4U

Capital Resources 4U is a Nampa, ID based private money lender providing funding throughout Idaho. They provide fix-and-flip loans and rental property loans. They will consider varying loan scenarios but generally focus on single family and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: ID

Lending Guidelines for Capital Resources 4U

Below are the general loan guidelines published on the Capital Resources 4U 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 Resources 4U.

Loan Example 1

Capital Resources 4U makes a private money loan to Ingrid for a rehab project in Boise, ID, on a property that costs $180,000. The lender agrees to write a note with a 85% loan-to-value (LTV) so they will loan $153,000 on the property. The terms of the loan dictate a 8% note for 12 months. They also stipulate a 1 point origination fee, which will also need to be paid when the property closes.

Ingrid will have to bring $27,000 at the closing (15% on the 85% LTV), plus she will have to pay the $1,530 origination fee. After the deal closes, she will have to pay Capital Resources 4U $1,020 in monthly interest payments, or 8% multiplied times $153,000 divided by 12 months in a year. At the end of the note, she sells the renovated property for $243,000. After subtracting the $12,240 in interest expenses ($1,020 multiplied times 12 months), the $1,530 origination fee, the $153,000 principle amount on the note, and the $27,000 she contributed to closing, she will make a total profit of $49,230 ($243,000 sales price minus $193,770 in total costs). This amount would then be reduced by any renovation costs paid out of pocket.

Loan Example 2

Craig is a an investor in Boise, ID. He locates an older townhouse for a rehab project and takes out a hard money loan from Capital Resources 4U with the following features:

a) A $170,000 purchase price, b) a 55% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 3% origination fee.

Assuming a $238,000 sales price after the 18 month term, the final numbers for this deal would look like the following:

$238,000 sales price
- $93,500 note principle (55% LTV)
- $76,500 down payment (45% on 55% LTV)
- $2,805 origination points (3% of the $93,500 principle)
- $15,428 total interest paid (18 months x 11% interest)
-----------------------
= $49,768 gross profit (does not include taxes or renovation costs)

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