Pivotal Capital Group

About Pivotal Capital Group

Pivotal Capital Group is a hard money lender in Ladera Ranch, CA providing funding in California. They provide lending solutions for many different situations and needs, including buy and hold loans, construction loans, and short term fix and flip loans. Their loan parameters are versatile, including loan amounts ranging from $150,000 to $15,000,000 and terms starting at 18 months. They will consider various loan requests but usually focus on single family residences and multi family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: CA

Licenses: California Finance Law License #603L220

Lending Guidelines for Pivotal Capital Group

Below are the general loan guidelines published on the Pivotal Capital Group 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 Pivotal Capital Group.

Loan Example 1

Alice finds a townhouse in Los Angeles, CA to remodel and re-sell. Since she does not have enough cash to buy the $380,000 house outright, she takes out a private money loan from Pivotal Capital Group. The borrower will have to fund 25% of the sales price in cash to the closing based on a 75% loan to value stipulated by the lending company. This makes the loan principle from Pivotal Capital Group $285,000. The deal also consists of these features: 1) a 6 month length, 2) a 8% interest-only note, and 3) a three point origination charge.

Alice will need to bring $95,000 to the closing (25% on the 75% loan-to-value), plus she will have to pay the $8,550 origination fee. The lender will collect $1,900 in monthly interest from the Alice. This is calculated by taking the total note amount of $285,000, multiplying that by the 8% rate of interest, and then dividing that number by 12. If Alice sells the remodeled house for $475,000 at the end of the 6 month term, her total profit (not including rehab costs) would be $75,050. This is calculated by taking the purchase price ($475,000) and subtracting the original principle ($285,000), the origination cost ($8,550), the money she brought to closing ($95,000), and the total interest expenses ($11,400).

Loan Example 2

Pivotal Capital Group issues a fix and flip loan to Harry for a remodeling project in Los Angeles, CA. The deal dictates the following:

a) A $220,000 sales price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 2% origination fee.

Based on a $308,000 sales price after the 6 month term, the outcome for the deal would look like this:

$308,000 sales price
- $165,000 loan principle (75% LTV)
- $55,000 down payment (25% on 75% LTV)
- $3,300 origination points (2% of the $165,000 principle)
- $9,900 interest payments (6 months x 12% interest)
-----------------------
= $74,800 total profit (does not include taxes or renovation costs)

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