Jacobs Funding and Investments

About Jacobs Funding and Investments

Jacobs Funding and Investments is a hard money lender headquartered in Scottsdale, AZ providing funding throughout Arizona. They offer cash out hard money loans, private commercial loans, fix and flip hard money loans, short term loans, and investment property loans. They issue terms up to 2 years, loan amounts ranging from $50,000 to $700,000 with a maximum LTV of 65%, and rates starting at 10%. They will make loans on various types of properties, including single family units, multi-family, apartments, office units, retail storefronts, and mixed use 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, Mixed Use

Areas Served: AZ

Lending Guidelines for Jacobs Funding and Investments

Below are the general loan guidelines published on the Jacobs Funding and Investments 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 Jacobs Funding and Investments.

Loan Example 1

Carmen closes on a $160,000 rehab project in Phoenix, AZ, using a fix-and-flip loan from Jacobs Funding and Investments. The loan-to-value (LTV) on the loan is 55%. This means that Carmen will need to bring 45% of the sales price to closing and the principle amount will be $88,000 on the note. The terms of the note also include a one percent origination fee which will be paid at closing and a 6 month, interest-only note with a 10% interest rate.

On top of the $880 origination fee, Carmen will also need to fund $72,000 of the purchase with her own money, or 45% of the sales price. Once the loan is closed and Carmen takes on the project, she will begin making payments each month of $733 to Jacobs Funding and Investments ($88,000 principle x 10% / 12 months). Carmen's plan is to finish the rehab within the 6 months and sell it for $216,000. If she succeeds she will make a gross profit of $50,720 ($216,000 price - $88,000 principle amount - $72,000 cash at closing - $880 origination fee - $4,400 in total interest paid.

Loan Example 2

Mario takes a hard money loan from Jacobs Funding and Investments in order to rehab a townhouse to flip in Phoenix, AZ. The deal has the following parameters:

a) A $400,000 purchase price, b) a 70% loan-to-value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 5% origination fee.

Once the rehab project is completed, if Mario sells the project for $580,000, the numbers would be the following:

$580,000 sales price
- $280,000 note principle (70% LTV)
- $120,000 down payment (30% on 70% LTV)
- $14,000 origination points (5% of the $280,000 principle)
- $18,200 interest payments (6 months x 13% interest)
-----------------------
= $147,800 total profit (doesn't include taxes or renovation costs)

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