About Capital Direct Funding
Headquartered in West Covina, CA, Capital Direct Funding is an asset-based lender providing loans in California. Their lending focus is mainly on fix-and-flip loans. The focus of their loans is for single family units and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: CA
Licenses: CALBRE# 01885595, NMLS # 1159831
Lending Guidelines for Capital Direct Funding
Below are the general loan guidelines published on the Capital Direct Funding website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Capital Direct Funding.
Loan Example 1
Bernadette closes on a $210,000 rehab project in Los Angeles, CA, using a fix and flip loan from Capital Direct Funding. The borrower will have to contribute 20% of the sales price in cash to the closing based on a 80% loan to value set by the lender. This makes the principle amount from Capital Direct Funding $168,000. The note is interest-only, with monthly payments, and is for 18 months at 13% interest with 5 points paid at the closing.
In addition to paying the $8,400 origination fee, Bernadette will also have to fund $42,000 of the purchase with her own cash, or 20% of the sales price. The monthly interest-only payments will then be $1,820 to the lender. At the end of the note, she sells the rehabed house for $294,000. After deducting the $32,760 in interest payments ($1,820 multiplied times 18 months), the $8,400 origination fee, the $168,000 principle on the note, and the $42,000 she contributed to the closing, she will earn a total profit of $42,840 ($294,000 price minus $251,160 in costs). This amount would be reduced by any renovation costs paid by the borrow.
Loan Example 2
Antonio is a real estate investor in Los Angeles, CA. He finds an older property for a remodeling project and takes out a hard money loan from Capital Direct Funding with the following features:
$260,000 purchase price
70% loan-to-value (LTV)
6 month term
14% rate of interest
2% origination fee
If Antonio succeeds in his goal of a $377,000 sales price, the final numbers of the project would be the following:
$377,000 sales price
- $182,000 loan principle (70% LTV)
- $78,000 down payment (30% on 70% LTV)
- $3,640 origination fee (2% of the $182,000 principle amount)
- $12,740 total interest paid (6 months x 14% interest)
= $100,620 total profit (doesn't include taxes or rehab costs)
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