Arizona's Premier Private Money Lender

Hard Money Loan Programs

For those who are new to real estate investment, or who find themselves in an unusual situation with a bank that won’t lend when there’s plenty of liquid assets on hand, the term “hard money loans” is one that should be learned quickly.

What Are They?

Also known as “private money loans,” these are short-term loans usually obtained either from an individual or small group instead of a bank or credit union. They are intended to rapidly facilitate the purchase of properties or land, either as part of an investment venture or for individuals who have been unable to obtain funding through conventional lenders.

The Advantages

Hard money loan programs from Capital Fund 1 and other lenders like them have certain advantages over banks. First, turnaround time is usually rapid. While a bank might take a month or more to make a decision, a private lender can make a decision in as little as a week, and sometimes even faster. Unlike banks, the applicant’s credit score is never a deciding factor in approval of the loan.

The Drawbacks

While there’s less paperwork and bureaucracy involved, we’d be remiss if we didn’t point out that there are a few points of difference when compared to traditional mortgages. Although credit scores are not a consideration, the amount of collateral and cash down may be more than what would be expected from a bank loan. Additionally, the interest rate and points on origination may be higher than what a bank might offer.

When To Use It

There are a number of scenarios when private money loans can be incredibly useful. Investment properties, particularly of the “fix and flip” variety, are certainly one. A bridge loan is another example, where a person is able to get a bank loan after a private money loan, and then use that to pay off the private loan. There are other examples, of course, and we’re happy to discuss them and how best to make use of them.

Capital Fund 1

Serving the Phoenix, Flagstaff, Tucson, Prescott and other areas of Arizona, Capital Fund 1 wants to help those who are need funding for real estate projects with courtesy and professionalism.  

Learn more about our Private Money Loan Programs

Rates Fee LTC* LTV* Term Prepayment Penalty?
Fix and Flip (Acquisition Only) 10.9%-15.9% $900** 90% 75% 6-12 Month NO LEARN MORE...
Buy and Hold 10.9%-14.9% 1-2 points 85% 70% 12-24 Months NO LEARN MORE...
Fix and Flip (Major Remodel) 10.9%-14.9% 1-3 point 85% 70% 12-24 Months NO LEARN MORE...
Commercial 9.9%-13.9% 2-3 points 80% 70% 12-24 Months Deal by Deal LEARN MORE...
Construction /Development 9.9%-13.9% 2-3 points 70% 70% 12-24 Months Deal by Deal LEARN MORE...
Land/Lots 10.9%-14.9% 2-3 points 70% 65% 12-24 Months Deal by Deal LEARN MORE...

* Maximum
** Additional Fees May Apply

For more information on our hard money loan programs, please fill out the form on the right, or contact us today at 480-889-6100.

Contact Capital Fund

7890 E McClain Dr, Ste 5
Scottsdale, AZ 85260
Hours: 8am-5pm
Email: info@capitalfund1.com

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