Capital Line Funding Group

About Capital Line Funding Group

Capital Line Funding Group is hard money lender headquartered in La Jolla, CA. They provide funding all throughout the country. They offer short term loans, private refinancing, commercial loans, fix-and-flip loans, and construction loans. Their loan guidelines are flexible, including terms between 12 months and 60 months and loan amounts ranging from $1,000,000 to $100,000,000 with a maximum LTV of 65%. They do not require their borrowers to have a minimum credit score to receive a loan. They offer loans on most types of properties, including single family, multi-family units, offices, retail units, industrial buildings, mixed use buildings, and apartments.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Office, Retail, Industrial, Mixed Use, Apartment

Areas Served: National

Licenses: License #00808579, NMLS #1887

Lending Guidelines for Capital Line Funding Group

Below are the general loan guidelines published on the Capital Line Funding Group website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Capital Line Funding Group.

Loan Example 1

Silvia is an investor in Salt Lake City, UT. She finds a run-down property and wants to remodel it and flip it for a profit. The house has a cost of $190,000 but she does not have the full amount so she takes a private money loan with Capital Line Funding Group. The terms of the loan include a 85% loan-to-value (LTV), so she must contribute 15% of the price as cash to closing, which makes the principle loan amount $161,500. The loan also includes these features: 1) a 18 month length, 2) a 9% interest-only note, and 3) a two percent origination charge.

By the parameters of the loan, Silvia will need to contribute a $3,230 origination fee in addition to 15% of the sales price, or $28,500, based on the 85% LTV. Capital Line Funding Group will collect $1,211 in monthly interest payments from the Silvia. This is computed by taking the total note value of $161,500, multiplying by the 9% rate of interest, and then dividing that number by 12. At the expiration of the loan, she sells the rehabed house for $266,000. After deducting the $21,803 in interest expenses ($1,211 times 18 months), the $3,230 origination fee, the $161,500 principle on the loan, and the $28,500 she brought to the closing, she will earn a total profit of $50,968 ($266,000 sales price minus $215,033 in costs). This amount would then be reduced by any renovation costs paid out of pocket.

Loan Example 2

Capital Line Funding Group makes a private money loan to Clarence for a renovation project in Santa Rosa, CA. The loan includes the following:

a) A $400,000 purchase price, b) a 65% loan-to-value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 2% origination fee.

If Clarence achieves his goal of a $520,000 sales price, the final numbers of the deal would be the following:

$520,000 sales price
- $260,000 principle (65% LTV)
- $140,000 cash paid at closing (35% on 65% LTV)
- $5,200 origination fee (2% of the $260,000 principle)
- $54,600 interest payments (18 months x 14% interest)
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= $60,200 gross profit (does not include taxes or renovation costs)

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