Capstone Financial

About Capstone Financial

Capstone Financial is a Scottsdale, AZ based hard money lender who provides loans all across the US. They provide lending solutions for a variety of needs and situations, including cash out loans, fix and flip hard money loans, short term loans, loans for rental properties, and private commercial loans. They provide rates ranging between 12% and 18% and terms between 6 months and 3 years. They provide loans on various property types, including single family, multi family residences, apartments, offices, retail storefronts, hotels, storage facilities, senior living facilities, mixed use, raw land, churches, warehouse spaces, industrial facilities, and medical buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money 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: National

Licenses: NMLS#302645, MLB#BK-0914076

Lending Guidelines for Capstone Financial

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

Loan Example 1

Rachelle is a house flipper in Chicago, IL. She finds a run-down property for sale and decides to rehab it and flip it for a profit. The house has a cost of $190,000 but she doesn't have the full amount so she obtains a hard money loan with Capstone Financial. The lender agrees to make a note with a 60% loan to value (LTV) so they will extend $114,000 on the property. The note is interest only, with monthly payments, and is for 6 months at 14% interest with 4 origination points paid when the deal closes.

On top of the $4,560 origination fee, Rachelle will also need to fund $76,000 of the purchase with her own cash, or 40% of the sales price. After the loan closes, she will have to pay the lender $1,330 in monthly interest payments, or 14% times $114,000 divided by 12 months in a year. If Rachelle sells the project for $266,000 after 6 months, she would realize a total profit of $63,460 after subtracting the principle of $114,000, the money contributed at the close of $76,000, the origination fee of $4,560, and the aggregate interest payments of $7,980. This gross profit doesn't account for renovation costs.

Loan Example 2

Todd is a real estate investor in Raleigh, NC. He buys a run-down townhouse for a remodeling project and obtains a private money loan from Capstone Financial with the following paramters:

a) A $260,000 purchase price, b) a 55% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 4% origination fee.

After the rehab project is completed, if Todd sells the property for $351,000, the numbers would be as follows:

$351,000 sales price
- $143,000 principle (55% LTV)
- $117,000 cash paid at closing (45% on 55% LTV)
- $5,720 origination points (4% of the $143,000 principle amount)
- $17,160 total interest paid (12 months x 12% interest)
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= $68,120 gross profit (doesn't include taxes or renovation costs)