01. What is a “Hard Money” loan?
02. How does the program work?
03. What do LTV and ARV mean?
04. What is your maximum LTV or Loan-to-Value within your programs?
05. How do you determine the loan amount?
06. What is the term of your loan?
07. Can I borrow money for repairs?
08. Do you require inspections?
09. Does my credit matter and how often will you obtain my credit report?
10. Where do you make loans?
11. Do you require a survey?
12. Does Capstone Funding, LLC lend on properties in the flood zone?
13. Can I get an extension on the 6 month term loans?
14. Do you have a program for new construction?
15. How are my payments calculated?

We offer this short discussion to answer most of the questions that potential borrowers ask about our program.

01. What is a “Hard Money” loan? Back to Top
A “Hard Money” loan generally refers to a loan secured by real estate in which the owner has equity. This equity can be immediate and/or created by making repairs to the individual property. The property is usually the best source of repayment for the “Hard Money” loan and provides security in the event of a default by the borrower.

02. How does the program work? Back to Top
We loan money to people who buy houses, fix them up, sell them or keep them for long term rentals. We normally lend only on single-family residential houses, although we will consider commercial multi-family housing units for the more experienced investor. The terms for these loans are quoted on a case-by-case basis. The process of obtaining a loan is easy, quick and efficient: submit a contract, submit a summary of your transaction, meet your loan officer to determine the value and the amount that we will lend, fill out the applications, and close the loan.

We have one simple form for you to fill out to apply for a loan. You can either fill it out, print and fax it to us or you can fill it out and submit it online. The application covers these items. You only need to do this once and then update annually!

* Commercial Loan Application / Financial Statement
* Schedule of real estate owned
* Summary of Transaction

The Commercial Loan Application and Financial Statement are used to evaluate and determine your worthiness as a potential borrower.

The Financial Statement and Schedule of real estate owned is used to get a general idea of your experience level.

The Summary of the transaction identifies the important points on your deal, how much you are paying, how much is needed in repairs, how much the house will sell for, and a list of some of the other costs. This will give you a good idea of how much profit is in the property for you and help us to determine if you have properly evaluated the transaction.

After submitting these forms, you can expect an answer and commitment with one business day and funding to follow once the title company has completed its work.

03. What do LTV and ARV mean? Back to Top
These are acronyms for the following terms: LTV refers to Loan-to-Value and ARV refers to After-Repaired-Value.

04. What is your maximum LTV or Loan-to-Value within your programs? Back to Top
Capstone Funding has programs that loan up to 75% LTV's of the after-repaired-value (ARV)???. These ARV is determined by an outside independent appraiser.

05. How do you determine the loan amount? Back to Top
The loan amount is determined once our loan officer visits the property during his/her property inspection and we obtain an appraisal from our outside appraisal company. At this time we will determine if we are able to loan 100% of the purchase and rehab amount. The loan amount must remain under a policy of 75% LTV.

06. What is the term of your loan? Back to Top
Capstone Funding will make notes for 3 months, 6 months or 9 months. This is determined by the scope of the transaction. The 9 month loan is only for New Construction Loans.

07. Can I borrow money for repairs? Back to Top
Yes, We want to fund all of your repairs. We require a detailed, itemized repair list of your work plan. A draw schedule is needed to identify the order in which you will repair the property. Then, we will pay you on a “percentage of completion basis” only — we do not pay for work in advance or stored materials. The money is placed in a separate escrow account pending disbursement.

08. Do you require inspections? Back to Top
We perform weekly draw inspections for our ongoing customers. Draw request will require an inspection to ensure the work is completed and in a good and workmanlike manner with photos documenting the progress. Your individual loan officer will be responsible for the inspections.
Please follow the following steps in order receive a credit for your draw:

Please fill out the draw request form found on our Forms page. Identify the items that have been or are currently being completed. Note – These items should match the estimate that was originally given to the loan officer when the loan was processed and approved.
Fax or e-mail before the end of the business day on Wednesday of the week you are requesting a credit for your draw.
Include with your request a signed Lien Waiver (available on our Forms page).
Return the wire request form to us if you choose to have your money wired.
An inspection will be preformed by the loan officer who originated your loan. At this time he/she will confirm the percentage that has been completed and photos will be taken to document your progress. The request will then be compared to your original estimate provided to the loan officer when the loan was processed. The draw will then be processed and wired on Friday.

• Note – In the event of a Holiday that falls on a Thursday or Friday ALL draws will be processed and funded that following Monday.

09. Does my credit matter and how often will you obtain my credit report? Back to Top
Credit is important but not the only indicator of someone’s ability to repay a loan. Yes, we will pull your credit for your first deal with us. We look at the value of the property after it is repaired, how much you are paying for it, and how much the repairs will cost to determine how much we will lend. Your financial information is updated annually along with your credit to ensure that you maintain minimum credit scores for obtaining our loans.

10. Where do you make loans? Back to Top
We loan in states where we are licensed to do business, presently Florida and Georgia.
We plan to add more states to our lending area once we become familiar with the geographical area and comfortable with the valuation process.

11. Do you require a survey? Back to Top
Yes. If you are applying for a new construction loan or a property that will need an addition, then you will need a survey prior to funding.

12. Does Capstone Funding, LLC lend on properties in the flood zone? Back to Top
Yes, but a separate flood insurance policy will be needed prior to funding.

13. Can I get an extension on the 6 month term loans? Back to Top
If payments are current and repairs are complete, we will provide an extension for 90 days. The cost is one percent of the loan amount, payable at the time of the renewal. Additional extensions are at the discretion of Capstone Funding.

14. Do you have a program for new construction? Back to Top
Yes, but the rates and terms will vary. Please contact us and we will provide program information on our current new construction products.

15. How are my payments calculated? Back to Top
Please take the loan or commitment amount and multiply by the interest rate. Take that figure and divide by 12 months and this will give you your monthly payment. All payments are to be sent to:

Capstone Funding, LLC
730 Peachtree Street
Suite 675
Atlanta, GA 30308

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