Investor Direct Capital

About Investor Direct Capital

Investor Direct Capital is a Del Mar, CA based private money lender who offers loans throughout California, Arizona, and Nevada. They provide loans for a variety of situations, including investment property loans and fix and flip loans. They offer rates ranging between 8% and 12% and terms up to 1 year. They will consider varying lending scenarios but primarily focus on single family homes and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: CA, AZ, NV

Licenses: CalBRE License No. 00994344

Lending Guidelines for Investor Direct Capital

Below are the general loan guidelines published on the Investor Direct Capital 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 Investor Direct Capital.

Loan Example 1

Lee finds a duplex in Los Angeles, CA to remodel and resell. Since he does not have enough cash available to buy the $400,000 project outright, he decides to take out a private money loan from Investor Direct Capital. The borrower will need to contribute 50% of the purchase price in cash to the closing based on a 50% loan to value set by the lending company. This makes the principle note from Investor Direct Capital $200,000. The parameters of the deal also stipulate a four percent origination fee that is to be paid at the closing and a 12 month, interest only note with a 14% interest rate.

In addition to paying the $8,000 origination fee, Lee will also fund $200,000 of the purchase with his own money, or 50% of the purchase price. The lender will collect $2,333 in monthly interest payments from the Lee. This is calculated by taking the full loan amount of $200,000, multiplying that by the 14% interest rate, and then dividing that amount by 12. Lee's intention is to finish the rehab within the 12 months and resell it for $500,000. If he succeeds he will collect a total profit of $64,000 ($500,000 price - $200,000 principle amount - $200,000 down payment - $8,000 origination points - $28,000 in total interest paid.

Loan Example 2

Investor Direct Capital makes a fix and flip loan to Paula for a rehab project in Los Angeles, CA. The loan includes the following:

$220,000 purchase price
60% loan to value (LTV)
6 month term
13% rate of interest
1% origination fee

Paula plans to sell the property when the note expires for $308,000. If she achieves this goal, the outcome would be as follows:

$308,000 sales price
- $132,000 loan principle (60% LTV)
- $88,000 down payment (40% on 60% LTV)
- $1,320 origination points (1% of the $132,000 principle)
- $8,580 interest payments (6 months x 13% interest)
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= $78,100 gross profit (does not include taxes or rehab costs)

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