Bridge lenders
Capital Fund 1
Capital Fund I, LLC, which trades as Capital Fund 1, is a private money lender based in Scottsdale, Arizona. It lends its own capital rather than brokering deals to other lenders, and underwrites on the strength of the property and the investment rather than on tax returns.
The application runs in three steps: the borrower submits an accepted purchase contract, completes a loan application, and in-house underwriters return an answer in as little as 24 hours. Programs cover fix-and-flip, ground-up construction and development, remodel and addition loans, land and lot loans, commercial bridge, cash-out refinance, foreclosure auction purchases, multifamily and long-term DSCR rental loans. Fix-and-flip leverage runs up to 92.5% loan-to-cost, construction up to 90% loan-to-cost and land up to 65% loan-to-value, with DSCR rentals up to 80% loan-to-value on 30-year fixed and ARM structures.
Capital Fund 1 has provided direct private capital since 2009. Its primary lending markets are Arizona, Colorado, Texas, Tennessee, Georgia and North Carolina, with offices listed in Scottsdale, Irving, Denver, Brentwood and Atlanta and locations pages for Florida and South Carolina. DSCR rental financing is offered in many markets nationwide. The firm states it can fund up to $30,000,000 to one borrower at a time and operates under BK-0917799 and NMLS# 396288.
Loans are for non-owner-occupied property only, though existing tenants are allowed. Points, document preparation fees and leverage vary by program and deal, and the firm asks investors to confirm current guidelines and coverage before relying on advertised terms.
Best for
Real estate investors buying non-owner-occupied property in Arizona, Colorado, Texas, Tennessee, Georgia or North Carolina who need asset-based funding quickly; not for buyers who intend to live in the property.
What they do
- Fix-and-flip loans
- Ground-up construction and development loans
- Commercial bridge loans
- Cash-out refinance loans
- Land and lot loans
- DSCR long-term rental loans
- Foreclosure auction and trustee sale financing
- Multifamily loans
- Remodel and addition loans
Details
| Attribute | Value |
|---|---|
| Founded | 2009 |
| Other offices | Irving, TX, Denver, CO, Brentwood, TN, Atlanta, GA |
| Licenses | BK-0917799, NMLS# 396288 |
| How they charge | Advertises rates from 9.75% on its higher-leverage program and from 8.99% for experienced investors; loans carry points plus a one-time document preparation fee. |
What stands out
- Has provided direct private capital and hard money loans for real estate investment since 2009
- States it can fund up to $30,000,000 to a single borrower at one time
- Underwrites in house and says it can fund a loan in as little as 24 hours
- Offices listed in Scottsdale, Irving, Denver, Brentwood and Atlanta
- Fix-and-flip program goes to 92.5% loan-to-cost, with up to 90% of purchase and 100% of rehab
Common questions
- What is the maximum loan amount?
- Capital Fund 1 states it can fund up to $30,000,000 to one borrower at a time. Actual leverage depends on the property value, local comparable sales, the strength of the deal and the borrower's investment experience.
- How quickly can Capital Fund 1 close a loan?
- Because loans are underwritten in house, the firm says it can fund a hard money loan in as little as 24 hours, or when the title company is ready.
- Can a borrower live in a property financed by Capital Fund 1?
- No. The firm lends only on non-owner-occupied residences, although tenants in the building are allowed under its loan terms.
- Are there prepayment penalties, and what fees apply?
- Capital Fund 1 says it does not impose prepayment penalties on most of its hard money loans. Most loans include points, each equal to 1% of the loan amount, plus a one-time document preparation fee at closing. Fees vary by program and transaction.