Residential First Capital

Creative Private Mortgage Lending in California and Washington

Common sense underwriting: If a loan makes sense, we will figure out a way to make it. We have been funding private money loans for 3 decades now and have seen most scenarios over the years. We pride ourselves on our creativity and fairness in loan pricing. We are comfortable funding Business Purpose as well as Consumer Purpose loans.

If we can’t make a particular loan, but we know of a reliable source that can, we will refer you to that source. We are all very responsive over here and know the importance of closing quickly and efficiently for our clients. We look forward to working with you to put your next loan transaction together.

Property Geographic Area Details

Primarily California and Washington. For all other states, we can create an LLC to be the lender.

Loan Amounts

$25,000 to $3,000,000

Interest Rates

7.5% to 10.99%

Loan Terms

6 months to 60 months

Origination Fees

1% to 2%

Lien Position

1st, 2nd, 3rd, 4th

Collateral Types

Residential Property
Commercial Property

Loan Purpose

Investment Acquisition
Investment Refinance
Improve Subject Property
Use Equity to Invest in Another Property
Invest in a Business
Business Working Capital
Value Add Project
Development Project
Primary Residence Purchase
Personal Use

Property Occupancy

Vacant
Tenant Occupied 100%
Owner Occupied Commercial
Owner Occupied Residential

Property Types

2-4 Units Residential
Assisted Living Facility
Commercial Condominium
Commercial Land
Condominium
Golf Course
Industrial
Manufactured Home
Mixed-Use
Mobile Home Park
Multifamily
Office
Portfolio of Commercial Properties
Portfolio of Residential Properties
Rehabilitation Facility
Residential Land
Retail
Senior Housing
Single Family Residence
Student Housing

Loan Types

Private Money
Hard Money
Residential Bridge
Residential Fix and Flip
Residential Rehab and Rent
Residential Ground-Up Construction
Residential Long-Term Rental
Residential Owner-Occupied

Specialty Loan Types

2nd Mortgage Equity Cash Out
3rd Mortgage Equity Cash Out
Bankruptcy Resolution
Commercial Permanent Financing
Condo Conversion
Discounted Note Payoff
Foreclosure Bailout
Note Purchase
Partner Buyout
Primary Residence Bridge
Primary Residence Business Purpose Cash Out
Residential Long-Term Rental
Residential Non-Prime
Reverse 1031 Exchange

Junior Lien Loan Amounts

$25,000 to $3,000,000

Junior Lien Interest Rates

7.99% to 10.99%

Junior Lien Loan-to-Value

65%

Junior Lien Loan-to-Cost

65%

Junior Lien Origination Fees

1% to 2%

We Fund Junior Position Loans

Often

Junior Lien Types

Purchase
Refinance
Equity Cash Out

We make 2nds, 3rds, and sometimes 4ths and can get creative to make loans work. Our junior liens run anywhere from a year to 30 years.

Description

Most of our land loans are against Residential in-fill lots. However, we have made some against entitled acreage for both residential, commercial, and industrial development.

Land Types Considered

Residential Land
Multifamily Land
Industrial Land
Office Land

Will Consider Land That is NOT Entitled

Existing Land Improvements Required

Street Access
Electricity
Gas
Water

Max LTV for Land

40%

Max LTC for Land Acquisition

40%

Junior Lien Types

Purchase
Refinance
Equity Cash Out

We make 2nds, 3rds, and sometimes 4ths and can get creative to make loans work. Our junior liens run anywhere from a year to 30 years.

We are really looking at the collateral and our equity position in all of it, assuming the borrower has a good plan to deal with the debt and we feel the borrower has the ability to repay.

Max Loan-to-Purchase Price

65%

Borrower Must Have Property Under Contract

yes

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

yes

Allowed Source of Borrower’s Equity

Own Cash
Partner
Equity in Subject Property
Equity in Another Investment Property
Equity in Primary Residence
Seller Financing
Gap Lender
Family

We are looking for the borrower to have adequate experience, a viable project, a solid exit plan, and ample liquidity to see the project through to completion.

Experience Required

yes

Minimum Number of Value-Add Projects Completed by Borrower

Will Provide Funds for Renovation Costs

Max LTC for Renovation Costs

70%

We have made many loans against residential property pools and loan pools. We have a lot of experience dealing with property and loan pools.

Minimum Loan Amount

$25,000

Maximum Loan Amount

$4,000,000

Minimum Interest Rate

7.5%

Maximum Interest Rate

10.99%

Minimum Origination Fee

Maximum Origination Fee

Minimum Loan Term

12 months

Maximum Loan Term

360 months

Maximum Loan-To-Value

65%

Maximum Loan-To-Purchase

75%

Maximum Debt-to-Income Ratio

50%

Will Lend on a Portfolio of Properties

Yes

Minimum Number of Properties

Maximum Number of Properties

Minimum Property Value

$100,000

Maximum Property Value

$5,000,000

Documents Fee

$450 for residential, $650 for commercial property

Escrow Fee

Whatever the mutually selected escrow company charges.

Title Fee

Whatever the mutually selected title company charges

Credit Report Fee

We accept brokers credit reports. If the borrower comes direct to us, we will charge a standard tri-merge fee, typically around $25

Appraisal Fee

Whatever the local appraiser charges. We have seen appraisal fees running anywhere from $350 to a lower priced home to well over $1,000 for a multi million dollar home. At lower values, we have allowed BPO's that run for $100 to $150 for our valuations.

Minimum Origination Fee Amount

$1,000

Fees which are mandatory for all new borrower clients

Documents Fee
Funding Fee
Appraisal Fee
Escrow Fee
Title Fee
Credit Report Fee
Renovation or Construction Funds Draw Fee

Fees which are paid to a third party company

Appraisal Fee

Details and Requirements

Typical Closing Time (Days)

Fastest Closing Time (Days)

Payment Structure

Interest Only
Amortized
Interest Reserve
Payment Rate
No Monthly Payments Required

Payment Structure Details

We work to meet the borrowers needs payment-wise

Payment Rate

5.0% to 10.99%

We can do anything from having no payments, with interest accruing to partial payments to interest only payments, to partially amortized payment, to fully amortized payments, whatever the situation calls for and merits. In other words, we can be very creative with the payment structure.

Pre Payment Penalty

yes

Our Business Purpose loans have a 3 months prepayment penalty, meaning after the borrower makes his/her third payment, there is no penalty to prepay our loan. That being said, this is all negotiable. On our Consumer Purpose Loans, there are no prepayment penalties.

Will lend to a foreign national

yes

As long as the loan makes sense and we feel the borrower has a solid plan for repayment

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

yes

We have invested alongside many of our borrowers investor partners over the years and are always open to make sense opportunities to co-invest.

Borrower Entity Types Considered

Individual(s)
LLC
Limited Partnership
Trust
Corporation
Non-Profit Corporation
Self-Directed IRA

Documentation Required

Credit Report
Loan Application

Personal Guaranty (Recourse) Required

Sometimes
Most of our standard business purpose loans do not require personal guarantees. Some of our commercial loans to entities do though at higher LTV's/CLTV's

Credit Check Required

yes

Minimum Credit Score Required

400

Credit Check Description

We are really equity based lenders and will make most of our lending decisions off the equity position, property location, and borrowers financial strength. We have made many private money loans to borrowers with poor credit.

Appraisal Required for Residential Property

Sometimes

Appraisal Required for Commercial Property

Sometimes

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Sometimes

Additional Details

Our typical fees... Residential: $450 doc fee, $175 admin fee, and $35 wire fee, Commercial: $650 doc fee, $175 admin fee, and $35 wire fee. The borrower also pays for an appraisal or BPO fee, a credit report fee, a negotiable funding fee, and standard, escrow, title, recording, and notary fees. The only up-front fee is the appraisal fee and the borrower or the broker pays that direct to the appraiser before the appraisal inspection.

Residential First Capital Testimonials

RTR Enterprises LLC

"We are very careful about who we use as our lender, and the trust that Residential First Mortgage has earned over the years of working with us makes them an incredible partner. They handle the heavy lifting and make it easy for us to do business with them. We can depend upon them to work hard on our behalf to ensure the loan will be completed professionally and quickly."

Real Estate Investor / Flipper

R Jones

"As I begin each project I look to my team of resource providers that I have built, and the team at Residential First Capital has been by my side for more than 30 years. We have worked together on different size transactions and each had their own unique aspects that were easily overcome given their expansive knowledge base and experience. They work very quickly and I can always count on them to do a good job and help me succeed."

Real Estate Investor / Flipper

J Vach

"When I am working on my new investment project it is important to me that the lender I work with is flexible in their loan structure and perform the transaction quickly. The speed and service from Residential First Mortgage is unsurpassed and has helped me be the right buyer for the perfect fix and flip property. In addition, the office staff is professional and friendly so the loan process itself is a great experience."

Real Estate Investor / Flipper

C Shepard

"Over 20 years and 300 loans processed with Residential First Capital has taught me that they are an amazing resource that is always ready to help make a difference in the right way. What you see is what you get with this team- honest, trustworthy and capable of navigating sometimes tricky transactions. They are the first people I turn to in each new opportunity."

Borrower

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We are a direct private money lender in California and Washington. We have been funding private money loans since the early 1990’s. Our company name has changed from Village Mortgage to Stone American Financial, to Ken Thayer, Trust Deed Servicing, to now, Residential First Capital. Our specialty is lending against residential properties, mainly SFR’s, Condos, and Units, but we have also made many commercial loans as well as land loans. We pride ourselves on responsiveness, creativity in making loans work for all, and execution. Our loan pricing is very fair and competitive also. We look forward to answering all inquiries that come in expeditiously and professionally.

License

CA DRE Lic. 01193114

Company Size (Number of Employees)

Year Established

2002

Associations

Califonia Mortage Association

Office Locations

Headquarters
20151 SW Birch Street, Suite 200, Newport Beach, California 92660

Washington State Office
Haley Thayer, Seattle, Washington

Primary Capital Source

Own Funds
Individual Investors

Alternative Capital Sources

Bank Credit Line
Friends & Family

Loan Structure for Majority of Loans

Multiple Investor Fractionalized Note

Percentage of Loans Secured by Commercial Property

10%

Percentage of Loans Secured by Residential Property

90%

Total Number of Loans Funded to Date

3,000

Total Loan Volume Funded to Date

$60,000,000

Our Team

Ken Thayer

President

CA DRE Broker License - 00714065

Contact Residential First Capital

Residential First Capital pays us to be listed, so there is no fee to connect with them directly.

Send email Create a Loan Request

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