About Equity Group
Equity Group is a Shawnee, KS based private lender. They provide funding in Kansas City. Their focus is primarily on fix-and-flip loans. They will consider different lending requests but generally focus on single family units and multi-family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Kansas City
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: N/A
Time to Close: N/A
Loan Example 1
Matthew finds a condo in Kansas City, KS to rehab and re-sell. Since he does not have enough cash on-hand to acquire the $220,000 house outright, he decides to take out a fix and flip loan from Equity Group. The borrower will have to bring 25% of the purchase price in cash to the closing based on a 75% loan-to-value set by the lending company. This makes the principle note from Equity Group $165,000. The loan also consists of these features: 1) a 18 month length, 2) a 14% interest-only note, and 3) a three point origination charge.
Matthew will need to fund a total of $32,400 up front to cover the $55,000 down payment plus the $4,950 origination fee. Once the loan is closed and Matthew takes over the project, he will begin making monthly payments of $1,925 to the lender ($165,000 principle x 14% / 12 months). Assuming he sells the rehabed project for $330,000 at the end of the 18 month term, his total profit (not accounting for remodeling expenses) would be $70,400. This is calculated by taking the purchase price ($330,000) and subtracting the original principle ($165,000), the origination fee ($4,950), the money he contributed to closing ($55,000), and the total interest expenses ($34,650).
Loan Example 2
Equity Group issues a private money loan to Trisha for a renovation project in Kansas City, KS. The deal dictates the following:
a) A $180,000 purchase price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 2% origination fee.
Based on a $252,000 sales price after the 18 month term, the final numbers for this deal would look like this:
$252,000 sales price
- $90,000 loan principle (50% LTV)
- $90,000 down payment (50% on 50% LTV)
- $1,800 origination points (2% of the $90,000 principle amount)
- $10,800 interest payments (18 months x 8% interest)
= $59,400 gross profit (does not include taxes or rehab costs)
No Reviews Yet
Equity Group currently has no reviews. To add a review now, click the link below: