SOURCE: Capital Fund 1

Capital Fund 1

June 18, 2015 18:36 ET

Private Money Catalyzing Market Growth in Phoenix Metro Area -- Capital Fund 1 Making More Deals Possible With Faster Financing Than Banks

PHOENIX, AZ--(Marketwired - Jun 18, 2015) - Capital Fund 1 ( is helping Phoenix rebound from the "great" real estate recession with fast-approval, private money loans that help developers and investors reenter the market, creating new construction jobs and buy and sale activity.

After years of recovery following the 2008 market crash, the Phoenix metropolitan area is thriving once again. Some real estate experts are predicting several more years of steady, healthy growth. Some people believe this recovery in Arizona and around the country is largely due to private money.

Private money has been the primary catalyst in the real estate sector growth in Maricopa County; as both residential and commercial property investors are utilizing private money lenders to acquire properties, which are either sold or later refinanced through conventional banks.

This method of acquiring properties and refinancing is good for the borrowers, good for the private money lenders and good for the banks. Most of all, it is good for the real estate market in the Phoenix metro area.

"Capital Fund customers look at our fees very much as you would see a line item on a budget or spreadsheet. When our customers find a property, they generally need to close on that property quickly. And often, the banks simply cannot act that fast," explains the Fund Manager and Founder of Capital Fund 1, Michael C. Anderson.

Private money is the fastest way real estate investors can acquire properties quickly. Since private money lenders like Capital Fund base loans on the value of the property, rather than the individual borrower's credit or financial strength. Capital Fund's lending practice generally makes credit decisions quickly, in days versus months, as compared to traditional lending institutions.

Despite the fact that private money lenders' interest rates are significantly higher than that of a traditional bank rates, the fact is that private money loans are for shorter terms, and are therefore more creative and flexible.

"If our borrowers use the money and pay it back within six months, we are actually less expensive than a bank," Anderson says.

That is exactly what many of his borrowers are doing. Private money borrowers use this lucrative option to get into a property fast. Borrowers generally do this with the intention of selling the asset quickly or refinancing with a traditional bank at a later time.

"By utilizing this strategy, borrowers accomplish two goals," explains Jamil Damji, a longtime client of Capital Fund 1. "Number one, they are able to close on properties quickly strengthening their purchasing power. And number two, they bought time to put together entitlements, build value, or get a construction loan to take out the higher interest private money loan. Private money gives investors the ability to seize opportunities and the time to add value and resell for a profit or to provide the time to refinance the asset to allow for a longer term hold."

Learn more about Capital Fund by visiting them online at: Or contact Noah Brocious, CCO, direct at: 480-889-6100.

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