Private Money Lending and Hard Money Loans FAQ


What types of transactions are handled?

Capital Fund 1 will lend hard money on non-owner occupied investment real estate properties. Some of these transactions include:

  • Trustee sales
  • REO’s
  • Short Sales
  • Cash Out Re-Fi’s
  • SFR (single family residence)
  • SFR Construction
  • Commercial
  • Lot/Land

Do you only lend hard money in Arizona?

Yes. Though most of our borrowers do business in the Greater Metro Phoenix area of Arizona, we have also loaned hard money in other cities in Arizona, such as Flagstaff, Tucson, Payson, Prescott, and Lake Havasu City to name a few.

What is the maximum loan amount?

Capital fund I is able to fund up to $8,000,000.

How long are the loan terms?

Our loan terms can be as few as 6 to 24 months, but all loans have the ability to extend past the loan term.

What are the minimum credit requirements to obtain a loan?

Capital Fund 1 lends private money based on the value of the asset. Typically, 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.

What fees will I be charged?

If you are taking out a Fix & Flip Loan with Capital Fund 1, you will pay a one-time document preparation fee of $900. Other loan programs require a one-time fee of 1-3 points.

What is a point?

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.

What is the down payment requirement?

Generally, you will have to put down a down payment of at least 20% depending on the private money loan and the property.

What is the maximum LTV?

Capital Fund 1 bases Loan To Value (LTV) calculations on the purchase price of the property. Therefore, LTV is equal to “loan to purchase price.” The LTV in most cases are as follows:

  • Fix & Flip Loans- up to 80% LTV
  • Buy & Hold Loans- up to 70% LTV
  • Commercial Bridge Loans- up to 65% LTV
  • Construction & Land Loans- up to 65% LTV

Can you obtain a private money loan on a new construction?

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

Do you lend on land?

Yes, we will lend private money on land.

Will you loan rehab money?

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

Do you charge prepayment penalties on any of hard money your loans?

99% of the time we do not impose prepayment penalties on our hard money loans..

How quickly can you close?

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

Do you require insurance?

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

How do I apply?

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