About Equity 1 Loans
Equity 1 Loans is private lender based in Bakersfield, CA. They offer funding in Bakersfield. Their lending focus is primarily on fix-and-flip hard money loans. Their loan parameters do not require a minimum FICO score. They primarily offer loans on single family and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Bakersfield, Kern County
Licenses: CA Bureau of Real Estate Broker Lic #00707520
Lending Guidelines for Equity 1 Loans
Below are the general loan guidelines published on the Equity 1 Loans website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: NO
Time to Close: 2 - 7 Days
The following loans are for education purposes only. They do not represent actual loans executed by Equity 1 Loans.
Loan Example 1
Joseph finds a property in Bakersfield, CA to remodel and re-sell. Since he doesn't have enough cash available to buy the $260,000 house outright, he takes out a hard money loan from Equity 1 Loans. The borrower will have to bring 35% of the sales price in cash to closing based on a 65% loan-to-value stipulated by the lending company. This makes the principle amount from Equity 1 Loans $169,000. The terms of the deal dictate a 11% note for 18 months. They also require a 2 point origination fee, that will also be paid at closing.
By the parameters of the loan, Joseph will be required to contribute a $3,380 origination fee plus 35% of the sales price, or $91,000, since there is a 65% LTV. Once the loan is closed and Joseph takes over the project, he will need to begin making monthly payments of $1,549 to Equity 1 Loans ($169,000 principle x 11% / 12 months). Joseph 's intention is to finish the house within the 18 months and re-sell it for $351,000. If he succeeds he will make a profit of $59,735 ($351,000 price - $169,000 principle - $91,000 funds brough to closing - $3,380 origination fee - $27,885 in total interest paid.
Loan Example 2
Equity 1 Loans makes a fix and flip loan to Ramon for a renovation project in Bakersfield, CA. The loan includes the following:
a) A $170,000 purchase price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 11% interest rate, and e) a 1% origination fee.
If Ramon accomplishes his goal of a $238,000 sales price, the outcome of the deal will be as follows:
$238,000 sales price
- $102,000 loan principle (60% LTV)
- $68,000 cash paid at closing (40% on 60% LTV)
- $1,020 origination points (1% of the $102,000 principle)
- $5,610 total interest paid (6 months x 11% interest)
= $61,370 total profit (doesn't include taxes or rehab costs)
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