Frequently Asked Questions
The frequently asked questions below address common issues related to California private money loans, bridge loans, hard money loans, construction loans, rehab loans, 2nd trust deed financing, loan submissions, underwriting, pricing, closing timelines, and trust deed investments.
These answers are provided for general informational purposes only. Every loan is reviewed based on the specific property, borrower, lien position, loan purpose, documentation, valuation support, available capital, and exit strategy.
For program guidelines, review our Hard Money Loan Programs. To submit a loan scenario, use our Online Submission Form. Brokers may also visit our Broker Portal.
Closing time depends on the property, title, valuation, documentation, insurance, and complexity of the transaction. Complete submissions involving readily marketable properties and well-supported values can generally move more efficiently than land, construction, agricultural, or specialized-property scenarios requiring additional due diligence.
Yes, selectively. We may consider business-purpose 2nd trust deed financing when the senior loan, combined leverage, property value, borrower equity, lien position, and exit strategy support the junior lien risk. Each request is evaluated individually.
Yes. FK Capital Fund Inc. considers ground-up construction, major renovation, rehab, and value-add financing throughout San Luis Obispo County. We review plans, permits, project budget, borrower experience, equity, valuation support, and the proposed completion and repayment strategy.
We consider residential investment properties, multifamily, commercial, mixed-use, land, and construction-related real estate throughout San Luis Obispo County. The county includes coastal, urban, agricultural, wine-country, and more rural submarkets, so location, property use, valuation support, and market liquidity are important underwriting considerations.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout San Luis Obispo County, including San Luis Obispo, Paso Robles, Atascadero, Arroyo Grande, Pismo Beach, Morro Bay, Grover Beach, and surrounding communities. Each request is reviewed based on the property, borrower equity, leverage, use of funds, and exit strategy.
Closing speed depends on title, valuation, property type, documentation, insurance, and transaction complexity. Complete files involving established residential or commercial properties may move more quickly than land, construction, or specialized collateral requiring additional analysis.
Yes, selectively. We may consider business-purpose 2nd trust deed loans when the senior financing, combined leverage, property value, borrower equity, and exit strategy provide adequate protection for the junior lien. Each request is reviewed independently.
Yes. FK Capital Fund Inc. considers ground-up construction, major renovation, rehab, and value-add financing throughout San Bernardino County. We evaluate the plans, budget, permits, borrower experience, property value, equity position, and realistic exit strategy before determining loan fit.
We consider residential investment properties, multifamily, commercial, industrial, mixed-use, land, and construction-related real estate throughout San Bernardino County. Given the county’s size and variety of submarkets, property location, use, valuation support, and local demand are important underwriting factors.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout San Bernardino County, including San Bernardino, Ontario, Rancho Cucamonga, Redlands, Chino, Victorville, Fontana, and surrounding communities. Each request is reviewed based on the property, leverage, borrower equity, and exit strategy.
Timing depends on the property, title, valuation, borrower documentation, and transaction structure. Straightforward transactions with complete information and readily supportable value can generally move faster than land, construction, or unusual-property scenarios requiring additional diligence.
Yes, selectively. Business-purpose 2nd trust deed financing may be considered when the property has sufficient equity and the senior loan, combined leverage, collateral value, borrower profile, and exit strategy support the junior lien risk.
Yes. FK Capital Fund Inc. considers ground-up construction, major renovations, rehab, and value-add projects throughout Riverside County. We review plans, permits, project budget, borrower experience, equity, valuation support, and the proposed completion and repayment strategy.
We consider residential investment properties, multifamily, commercial, mixed-use, land, and construction-related real estate throughout Riverside County. The market includes urban, suburban, resort, desert, and development-oriented areas, making property location and local liquidity important underwriting considerations.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout Riverside County, including Riverside, Palm Springs, Palm Desert, Rancho Mirage, Temecula, Murrieta, Corona, and surrounding communities. Loan structure depends on the specific property, leverage, borrower equity, use of funds, and exit strategy.
Closing speed depends on valuation, title, documentation, insurance, and transaction complexity. Complete submissions with a clear property story, readily supportable value, and straightforward title generally receive the fastest review.
Yes, selectively. We may consider business-purpose 2nd trust deed financing when the property has sufficient equity and the first trust deed, combined leverage, borrower strength, and exit strategy support the additional lien. Each transaction is evaluated individually.
Yes. FK Capital Fund Inc. considers construction, major renovation, rehab, and value-add projects throughout Ventura County. We review the scope of work, budget, permits, borrower experience, equity, valuation support, and exit strategy before determining whether a project fits our lending parameters.
We consider residential investment properties, multifamily, commercial, mixed-use, land, and construction-related real estate throughout Ventura County. The county includes coastal, suburban, agricultural, and inland markets, so valuation, property use, and market liquidity are reviewed on a property-specific basis.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout Ventura County, including Ventura, Oxnard, Camarillo, Thousand Oaks, Westlake Village, Moorpark, Simi Valley, and surrounding communities. Each transaction is reviewed based on the property, leverage, borrower equity, and repayment strategy.
Closing time varies based on title, valuation, insurance, borrower documentation, and transaction complexity. Complete loan packages with strong valuation support and a straightforward structure generally move through underwriting more quickly.
Yes, selectively. Business-purpose 2nd trust deed requests may be considered when the senior financing, combined loan-to-value, property quality, borrower equity, and exit strategy support the additional lien. The strength and liquidity of the underlying property are important considerations.
Yes. FK Capital Fund Inc. considers ground-up construction, significant renovation, rehab, and value-add financing throughout San Diego County. We evaluate the project scope, budget, permits, borrower experience, equity contribution, valuation support, and realistic sale or refinance exit.
We consider residential investment properties, multifamily, commercial, mixed-use, land, and construction-related real estate throughout San Diego County. Coastal, urban, suburban, and inland properties can present different valuation and liquidity considerations, so each transaction is reviewed on its own merits.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout San Diego County, including San Diego, La Jolla, Del Mar, Encinitas, Carlsbad, Oceanside, Chula Vista, Escondido, and surrounding communities. Loan terms depend on the specific collateral, leverage, borrower, use of funds, and exit strategy.
Timing depends on valuation, title, documentation, entity structure, insurance, and the complexity of the transaction. Well-documented requests with clear title and readily supportable value can generally move more efficiently than transactions requiring additional due diligence.
Yes, selectively. We may consider business-purpose 2nd trust deed financing when the first trust deed, combined leverage, property value, borrower equity, and exit strategy provide sufficient support for the junior lien position. Higher-value Orange County properties may present viable scenarios, but each request is reviewed individually.
Yes. FK Capital Fund Inc. considers ground-up construction, major remodels, rehab projects, and other value-add transactions throughout Orange County. We review the project scope, budget, borrower experience, permits, current value, completed value where appropriate, borrower equity, and proposed exit.
We consider residential investment properties, multifamily, commercial, mixed-use, land, and construction-related real estate throughout Orange County. The county includes both high-value coastal markets and more traditional suburban and commercial submarkets, so underwriting is based on the specific property and local market rather than county-wide averages.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout Orange County, including Newport Beach, Irvine, Costa Mesa, Huntington Beach, Laguna Beach, Dana Point, San Clemente, Anaheim, Fullerton, and surrounding communities. We review each request based on the property, leverage, borrower equity, use of funds, and exit strategy.
Closing time depends on the transaction, property, title, valuation, documentation, and responsiveness of the parties involved. Complete submissions generally receive the fastest review, and transactions with clear title, adequate valuation support, and complete borrower documentation can often move quickly.
Yes, selectively. FK Capital Fund Inc. considers business-purpose 2nd trust deed loans in Los Angeles County when the senior debt, combined leverage, collateral value, borrower equity, lien position, and exit strategy support the request. Each junior-lien transaction is reviewed individually.
Yes. FK Capital Fund Inc. considers ground-up construction, major renovation, rehab, and value-add real estate financing throughout Los Angeles County. Construction-related requests are reviewed based on the property, borrower experience, project scope, budget, permits, equity, valuation support, and exit strategy.
FK Capital Fund Inc. considers financing secured by residential, multifamily, commercial, mixed-use, land, and construction-related real estate in Los Angeles County. Each request is reviewed based on the specific property, value, borrower equity, lien position, use of funds, loan structure, and exit strategy.
Yes. FK Capital Fund Inc. considers business-purpose private real estate loans throughout Los Angeles County, including Los Angeles, Beverly Hills, Santa Monica, Pasadena, Long Beach, the San Fernando Valley, the South Bay, and surrounding communities. Loan structure and availability depend on the property, collateral, borrower, leverage, use of funds, and exit strategy.
How fast can you close?
We can often close a 2nd trust deed loan quickly when the borrower, title company, and required third parties are responsive. In many cases, a closing within approximately one week may be possible if the file is complete and valuation support is available. Appraisals, title issues, senior lender information, and borrower documentation are typically the items that affect timing the most. To start a review, use our Online Submission Form.
What is the largest first trust deed you will be subordinate to?
We do not have a fixed maximum first trust deed amount. However, the size, terms, payment status, and maturity of the first trust deed are important underwriting factors. A larger senior loan generally increases risk, so we review the full capital stack, combined loan-to-value, borrower equity, collateral value, and exit strategy before making a decision. For common terminology such as CLTV, lien position, and exit strategy, see our Private Lending & Mortgage Glossary.
Will you make a 2nd trust deed loan behind a hard money first trust deed?
Generally, no. We typically only consider 2nd trust deed loans behind institutional first trust deeds. We are more cautious when the senior loan is private money, hard money, in default, near maturity, or otherwise creates additional risk to the junior lien position. For broader program guidelines, review our Hard Money Loan Programs.
Will you make a 2nd trust deed loan if the first trust deed is late or in default?
Generally, no. A late or defaulted first trust deed creates significant risk for a junior lienholder. We may consider limited exceptions only when the collateral, equity, borrower strength, payoff plan, senior lender status, and overall exit strategy clearly support the risk.
Do you require appraisals?
In most cases, yes. For residential properties, we generally require valuation support and may consider a desktop valuation or other limited valuation review when appropriate, usually together with a site inspection and internal comparable sales analysis. For commercial properties, we review income, expenses, market rents, capitalization rates, comparable sales, property condition, and other relevant valuation factors. A full appraisal may be required depending on the transaction.
Will you go higher than 65% combined loan-to-value (CLTV)?
We will consider requests above 65% CLTV on a case-by-case basis. Higher leverage typically requires strong compensating factors, such as substantial borrower equity, strong credit, meaningful liquidity, high income, a repeat borrower relationship, a purchase below market value, or additional collateral. Leverage above 65% is generally considered more selectively and is most likely to be considered on residential collateral. Examples of prior lending activity can be reviewed on our Featured Transactions page.
Will you consider a 2nd trust deed loan on land?
Generally, no. We typically do not make 2nd trust deed loans secured by land. Land is harder to value, harder to liquidate, and carries additional risk for a junior lienholder.
Do you have minimum credit score requirements?
We do not have a fixed minimum credit score requirement for every 2nd trust deed loan. We focus on the overall borrower and collateral profile, including equity, liquidity, income, credit history, lien position, collateral value, senior debt, and exit strategy. Credit is still reviewed as part of the overall underwriting process.
What are the lowest points you charge?
Our fee structure is typically around 2 points, depending on the transaction. Pricing may vary based on loan size, lien position, leverage, borrower strength, property type, title risk, senior debt, timing, and overall complexity. Lower points may be considered by exception when the deal supports it. For construction-specific scenarios, review our Hard Money Construction Loans page, or contact us to discuss a specific file.
How fast can you close?
We generally quote 2 to 4 weeks for ground-up construction loans. We can move faster when the borrower is organized, responsive, and provides a complete file early in the process. The most time-consuming items are typically the budget and plan review, appraisal, title review, and construction due diligence. Several of these items can usually be reviewed at the same time. For more detail on our construction lending approach, review our Hard Money Construction Loans page.
Will you consider a ground-up construction loan on a commercial property?
Yes, in select circumstances. Most of our ground-up construction loans are secured by residential properties, but we will consider commercial construction loans when the collateral, borrower experience, budget, permits, equity, and exit strategy support the risk.
Do you require appraisals?
In most cases, yes. For residential construction loans, we generally require valuation support and may consider a desktop valuation or other limited valuation review when appropriate, usually together with a site inspection and internal comparable sales analysis. For commercial construction loans, we generally require a full appraisal.
Will you go higher than 65% loan-to-value (LTV)?
We will consider requests above 65% LTV on a case-by-case basis. Higher leverage typically requires strong compensating factors, such as borrower experience, strong credit, meaningful liquidity, substantial equity, a repeat borrower relationship, additional collateral, or a clearly supportable exit strategy. For definitions of LTV, leverage, and related private lending terms, see our Private Lending & Mortgage Glossary.
How does the draw process work and how long does it take?
The borrower submits a draw request with the applicable line items, invoices, supporting documentation, and lien releases as required. We then review the request, coordinate an inspection, confirm completed work, and process the approved draw. Draws are typically processed within 2 to 4 business days after receipt of a complete draw package and satisfactory inspection.
Do you have minimum credit score requirements?
We do not have a fixed minimum credit score requirement for every construction loan. We focus on the overall borrower and project profile, including experience, liquidity, collateral, equity, budget, permits, repayment plan, and exit strategy. Credit is still reviewed as part of the overall underwriting process.
What are the lowest points you charge?
Ground-up construction loans are typically priced around 2 points, depending on the transaction. Pricing may vary based on loan size, leverage, borrower strength, project complexity, lien position, timeline, and overall risk. Lower points may be considered by exception when the deal supports it. General loan parameters can also be reviewed on our Hard Money Loan Programs page.
Do you charge Dutch interest?
No. We generally charge interest only on the funds that have been disbursed. Undrawn construction holdback funds do not typically accrue interest until they are advanced, subject to the specific loan terms and documents.
Will you consider construction loans outside California?
At this time, we are only lending in California. To submit a California construction loan scenario, use our Online Submission Form. You can also review examples of prior lending activity on our Featured Transactions page or contact us to discuss a specific file.
Do I have to bring money into the deal to close?
Yes. We require the borrower to bring money into every transaction. Although we may consider high-leverage rehab loans, including loans that exceed the purchase price in select cases, the borrower is still expected to have capital invested in the transaction. The required cash to close depends on the purchase price, rehab budget, fees, interest reserve, leverage, collateral value, and overall risk profile. General loan parameters can also be reviewed on our Hard Money Loan Programs page.
How do you determine the money required to close?
We evaluate both the total project cost and the after repair value. As a general framework, we may lend up to 65% of the after repair value and typically require the borrower to contribute at least 15% of the total deal cost. Total deal cost generally includes the purchase price, loan fees, interest reserve, rehab budget, closing costs, and other required transaction costs.
What is After Repair Value, or ARV?
After Repair Value, or ARV, is the estimated value of the property after the proposed rehab or renovation work is completed. ARV is an important underwriting factor, but it is only one part of the analysis. We also review the purchase price, rehab budget, scope of work, borrower experience, borrower liquidity, comparable sales, property condition, timeline, and exit strategy. For definitions of ARV, LTV, leverage, interest reserve, and related lending terms, see our Private Lending & Mortgage Glossary.
Will you joint venture on a deal?
We may consider a joint venture structure in select circumstances, but our preference is generally to provide a loan secured by real estate. If a borrower, partner, or related party is interested in a joint venture structure, we will review the opportunity and determine whether it fits our investment and risk parameters.
Can I complete the rehab using credit instead of bringing rehab funds into escrow?
Generally, no. Rehab funds typically need to be brought into escrow or otherwise documented and controlled to the lender’s satisfaction. A borrower may use credit cards, vendor credit, or other funding sources to pay for work, but reimbursement is generally handled through the approved draw process after work is completed, inspected, and supported by required documentation.
Is an interest reserve required?
Yes. We generally require a minimum interest reserve of 3 months. The required interest reserve may be higher depending on the loan amount, project timeline, rehab scope, borrower liquidity, property condition, and exit strategy.
Do you have minimum credit score requirements?
We do not have a fixed minimum credit score requirement for every investor rehab loan. However, credit is part of the overall underwriting review. Lower credit may affect leverage, pricing, required cash to close, reserve requirements, or whether the loan is approved. Strong collateral, borrower equity, experience, liquidity, and a clear exit strategy can help offset certain credit concerns. Examples of prior lending activity can be reviewed on our Featured Transactions page.
To submit a California investor rehab loan scenario, use our Online Submission Form, or contact us to discuss a specific file.
How fast can you close?
We can often close quickly when the borrower, title company, escrow, and required third parties are responsive. With a complete file and no material title, valuation, or documentation issues, some loans can close in a matter of days. Appraisals, title issues, payoff demands, entity documents, insurance, and borrower documentation are typically the items that affect timing the most. To start a review, use our Online Submission Form.
Do you require appraisals?
In most cases, yes. For residential properties, we generally require valuation support and may consider a desktop valuation or other limited valuation review when appropriate, usually together with a site inspection and internal comparable sales analysis. For commercial properties, we review income, expenses, market rents, capitalization rates, comparable sales, property condition, and other relevant valuation factors. A full appraisal may be required depending on the transaction.
Will you go higher than 65% loan-to-value (LTV)?
We will consider requests above 65% LTV on a case-by-case basis. Higher leverage typically requires strong compensating factors, such as substantial borrower equity, strong credit, meaningful liquidity, high income, a repeat borrower relationship, a purchase below market value, additional collateral, or a clearly supportable exit strategy. Leverage up to 70% is generally considered more selectively and is most likely to be considered on residential collateral. For definitions of LTV, leverage, lien position, and related lending terms, see our Private Lending & Mortgage Glossary.
Will you consider land loans?
Yes, we will consider land loans in select circumstances. Land loans are generally considered up to approximately 50% LTV, depending on location, zoning, entitlement status, access, utilities, marketability, borrower strength, and exit strategy. General loan parameters can also be reviewed on our Hard Money Loan Programs page.
Do you have minimum credit score requirements?
We do not have a fixed minimum credit score requirement for every hard money loan. We focus on the overall borrower and collateral profile, including equity, liquidity, income, credit history, lien position, collateral value, loan purpose, and exit strategy. Credit is still reviewed as part of the overall underwriting process. Examples of prior lending activity can be reviewed on our Featured Transactions page.
What are the lowest points you charge?
Our fee structure is typically between 1 and 2 points, depending on the transaction. Pricing may vary based on loan size, leverage, borrower strength, property type, lien position, title risk, timing, and overall complexity. Par pricing may be available in select cases when the deal structure supports it. To discuss a specific California hard money loan scenario, contact FK Capital Fund.
General Frequently Asked Questions
Q1: What types of loans does FK Capital Fund offer?
FK Capital Fund offers bridge loans, ground‑up construction financing and second trust deed loans for residential, commercial and land collateral. All loans are for business purposes and secured by California real estate.
Q2: Do you lend on owner‑occupied properties?
We are able to provide business‑purpose loans secured by owner‑occupied properties. We do not originate consumer or owner‑occupied mortgages.
Q3: What is the minimum loan amount?
The minimum loan amount is $100,000, lower by exception.
Q4: How quickly can a loan close?
With a complete submission package—including appraisal, photos and documents—some bridge loans can close in as little as three days. Construction and more complex deals generally take 2–4 weeks.
Q5: What documentation is required to submit a deal?
Initial submissions typically require an online form or application, property photos or MLS link, purchase agreement (if applicable) and a credit report. Additional items such as budgets, plans, bank statements and entity documents may be required for closing. See our Submission Requirements here.
Q6: What are your maximum LTV and LTC ratios?
Standard bridge loans and second trust deeds are capped at about 70 % loan‑to‑value. For construction loans, we go to 75% LTC on ground up construction and 85% LTC on rehab loans, but not exceed 65 % of the after‑repair value.
Q7: Do you lend outside California?
No. FK Capital Fund lends exclusively on properties located in California.
Q8: Are your loans personally guaranteed?
Personal guarantees may be required depending on the borrower’s experience, collateral type and deal structure. Each scenario is evaluated individually.
Q9: How are interest rates determined?
Rates vary by product, leverage and borrower profile. Typical note rates start around 8.99 % for first trust deeds and 10.99 % for second trust deeds. Lower rates may be available for well‑qualified borrowers.
Q10: Can I invest in trust deeds through my IRA?
Yes. FK Capital Fund’s trust deed investments are approved for self‑directed IRAs and other retirement accounts.