Private Money Lending and Hard Money Loans FAQ


Capital Fund 1 will lend hard money on investment real estate. Some of these transactions include:

  • Wholesale Deals
  • Off-Market Transactions
  • Acquisitions off MLS
  • Trustee sales
  • REO’s
  • Short Sales
  • Cash Out Re-Fi’s
  • Residential (Sing Family Residence, Condo, Townhomes, Duplex-Fourplexes)
  • Construction & Development
  • Commercial
  • Lot/Land
  • AZ: Most of our borrowers come from the Greater Metro Phoenix area of Arizona, we also lend in other cities in Arizona, such as Flagstaff, Tucson, Payson, Prescott, and Lake Havasu City to name a few.
  • CO: We now lend in Colorado focusing on the Denver area.
  • TX: We now lend in Texas focus on the DFW area.

Capital fund I is able to fund up to $30,000,000 to a borrower at one time.

Capital Fund 1 lends private money based on the value of the asset. We do not run credit checks! Your credit score will not be used to determine whether you are qualified for a private money loan with Capital Fund.

If you are taking out a Fix & Flip Loan with Capital Fund 1, you will pay a one-time document preparation fee. Other loan programs will vary depending on the loan situation.

A “Point” is an “upfront fee” on a private money loan that is incurred at the time of the loan. Each point is equal to 1% of the private money loan amount.

Generally, there will be a down payment required in most loan cases. Speak with a CF1 specialist to review your specific situation.

Capital Fund 1 bases Loan to Value (LTV) calculations on the closed comps in the immediate area. On residential, we can lend up to 85% of Current Value and up to 90% of the purchase price (LTPP). The LTPP in most cases are as follows:

  • Fix & Flip Loans- up to 90% LTPP
  • Buy & Hold Loans- up to 75% LTPP
  • Commercial Bridge Loans- up to 80% LTPP
  • Construction & Land Loans- up to 65% LTPP

Note: these are subject to change at any time. Speak with a CF1 specialist to get the most up to date information.

Yes. We welcome new construction loans. We have provided alternative funding for Single Family Residential (SFR) and commercial new construction as well.

No, we can only lend on non-owner-occupied residences. However, tenants in the building are allowed per our loan terms.

Yes, we will lend private money on land.

Yes, we can loan hard money on rehab costs, as long as the property is not owner-occupied.

We do not impose prepayment penalties on most of our hard money loans.

Because we can underwrite all our loans in-house, we can fund your hard money loan in as little as 24 hours.

Yes. We require hazard and title insurance on each property that we lend on.

You can apply for a loan by visiting our loan application or you can call us directly at (480) 889-6100