Capital Funding Financial is one of the largest private mortgage loan providers in South Florida who works with both institutional and private investors. Our Company specializes in asset based loans (“hard money loans”) featuring strong collateral (only 50-65% Loan To Value/Basis), minimum volatility risk, a short term of 1-3 years (up to 5 years), and a high rate of return of 8.5% – 14% to the investor. With the stock market’s volatility and T bills earning virtually no interest income… It’s almost impossible to find anything comparable to this investment strategy on the market right now. You could decide to be the landlord or fix & flipper and elect to take more of an active role in your investment strategy. But Why? The yield is not much if any higher and you will take on way more risk! You end up being the one dealing with all the headaches and incurring all the liability. At the end of the day wouldn’t you rather be the Bank versus the Landlord/Fix & Flipper? The majority of our investors are business professionals who are sick and tired of seeing their investment & IRA’s gambled away in the stock market. We offer investors a safer alternative to the volatile stock market and a way to diversify their portfolio while receiving a large rate of return.
We provide asset based loans to strong borrowers who just missed the traditional bank’s qualifications by a bit. Since the financial crisis, national bank’s have very strict requirements which extend only to the most qualified of buyers with a low debt to income ratio, high income, and a great credit score. As a result, many borrowers such as doctors, attorneys, developers, general contractors, CPA’s, and business owners with large cash reserves and equity positions but whom have other debt are turned down solely because of these harsh guidelines. These borrowers resort to private lenders such as Capital Funding Financial who are willing to loan on the value of the asset versus solely the credit & income of the borrower.
Our Company prides itself in our conservative underwriting process in selecting the best qualified deals for our investors. Our team of experienced attorneys, loan originators and underwriters ensure that each and every loan undertaken is diligently assessed for your safety. There is title insurance on each and every loan, to insure that there are no title issues, and gap insurance to provide coverage until the mortgage is recorded. All of our appraisals are done by independent appraisers and reviewed by our team of underwriters and attorneys to ensure the maximum Loan To Value/Basis is 50%-65%. What this means as an investor is the property’s conservative appraisal value would have to drop in half before the value of the underlying collateral would drop below the loan/investment amount! In the event of a default by the borrower, the investor is in full control of the situation. If the borrower were to have cash flow problems resulting in missing an interest payment, the borrower would be in default of the loan subjecting the borrower to the default interest rate of 18%-25% to be paid to the investor. A notice of default will be filed immediately after the grace period expires and our staff of attorney’s will handle the foreclose process which only takes an average of 6 months now. However, the borrower will have 35%-50% of their own money in the asset and could just sell the asset instead of losing all of their equity in it! Hence why studies have shown default rates on asset based loans (“hard money loans”) are less then 2% nationally!
Our team of seasoned real estate experts & attorneys handle the initial review of the loan transaction. We pride ourselves in providing quality guidance to our investors with the realization that you rely on our availability and expertise to safeguard your assets. Therefore you will receive a detailed summary of the property including the most recent comparable market sales, independent appraisal, and details about the borrower in our “Investment Package” so that you can make an informed decision on each deal. Once you have indicated a positive interest and the amount you would like to invest, we will send you a complete “Loan Package” with the letter of intent, commitment, title report, and loan disclosures to be reviewed and completed by you at your earliest convenience. As soon as the executed loan documents are received back from the title company, you will need to send the loan proceeds directly to the title company specific to the wire instructions to complete the investment. You will then begin enjoying the monthly interest payments for the term of the investment. As an investor with Capital Funding Financial, you will receive our world class 24/7 customer service and professionalism with every deal. Contact us today to review our “Investor Package” and begin investing in private hard money loans with Capital Funding Financial.
What is the minimum investment?
$100,000 ($50,000 if in South Florida)
How long are the funds committed for?
1-3 year terms are available
What rate of return can I expect on my investment?
The expected return will vary from 8.5%-14% depending on the size of the loan and the term
When will the interest payments on the loan be paid?
Monthly via direct deposit or check
How is the interest based?
The interest is based on a 360 day year and paid monthly