About Equity Max
Based in Fort Lauderdale, FL, Equity Max is a private money lender providing loans in Florida. Their lending focus is primarily on fix-and-flip loans. They lend funds to all borrowers based on the value of the property and do not require a minimum FICO score. They will consider various lending scenarios but generally focus on single family homes and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: FL
Licenses: NMLS #1523517
Lending Guidelines for Equity Max
Below are the general loan guidelines published on the Equity Max 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: YES
Prepayment Penalties: NO
Minimum FICO Score: NO
Time to Close: 2 Days
The following loans are for education purposes only. They do not represent actual loans executed by Equity Max.
Loan Example 1
Virgil finds a condo in Miami, FL to rehab and sell. Since he does not have enough cash to buy the $310,000 house outright, he takes out a private money loan from Equity Max. The terms of the loan include a 85% loan to value (LTV), so he must bring 15% of the price as cash to closing, which makes the principle loan amount $263,500. The parameters of the note also include a two percent origination fee which is to be paid at the closing and a 6 month, interest-only note with a 13% interest rate.
Accordingly, the borrower will be required to contribute a $46,500 down payment in addition to paying a $5,270 origination fee. After the deal closes, he will need to pay Equity Max $2,855 in monthly interest fees, or 13% times $263,500 divided by 12 months in the year. At the end of the loan, he sells the renovated house for $434,000. After deducting the $17,128 in total interest payments ($2,855 times 6 months), the $5,270 origination fee, the $263,500 principle on the loan, and the $46,500 he brought to the closing, he will earn a gross profit of $101,603 ($434,000 price minus $332,398 in total costs). This amount would be reduced by any building costs paid by Virgil .
Loan Example 2
Jeannette locates a duplex in Miami, FL to rehab and resell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Equity Max with the following parameters:
$330,000 sales price
80% loan to value (LTV)
12 month term
9% rate of interest
4% origination fee
If Jeannette achieves her goal of a $429,000 sales price, the outcome of the deal will be the following:
$429,000 sales price
- $264,000 loan principle (80% LTV)
- $66,000 down payment (20% on 80% LTV)
- $10,560 origination fee (4% of the $264,000 principle)
- $23,760 interest payments (12 months x 9% interest)
= $64,680 gross profit (does not include taxes or rehab costs)
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