Sunset Equity Funding

About Sunset Equity Funding

Sunset Equity Funding is a hard money lender based in Los Angeles, California. They issue loans in all states except for Alaska, North Dakota, and South Dakota. Their loan offerings include purchase loans, fix and flip loans, new construction loans, and bridge loans. They will also make loans for auction purchases in certain situations. Their rates and terms are flexible and they will issue loans on most non-owner occupied properties, including single- and multi-family homes and most types of commercial properties.

Loan Types Offered: Hard Money Loans, Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial

Areas Served: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY

Lending Guidelines for Sunset Equity Funding

Below are the general loan guidelines published on the Sunset Equity Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Sunset Equity Funding.

Loan Example 1

Sunset Equity Funding issues a private money loan to Elisa for a remodeling project in San Jose, CA, on a property that costs $220,000. Since the lender agrees to a 60% loan to value, Elisa will need to put 40% down and the total amount of the loan will be $132,000. The parameters of the loan dictate a 14% note for 12 months. They also stipulate a 1 point origination fee, that will also have to be paid at closing.

According to the terms of the loan, Elisa will have to pay a $1,320 origination fee plus 40% of the sales price, or $88,000, based on the 60% LTV. After the loan closes, she will have to pay Sunset Equity Funding $1,540 in monthly interest payments, or 14% times $132,000 divided by 12 months in a year. Elisa's intention is to complete the rehab within the 12 months and resell it for $297,000. If she succeeds she will collect a gross profit of $57,200 ($297,000 sales price - $132,000 principle amount - $88,000 cash at closing - $1,320 origination points - $18,480 in total interest paid.

Loan Example 2

Miranda is a real estate investor in Cleveland, OH. She locates an older townhouse for a rehab project and takes a hard money loan from Sunset Equity Funding with the following features:

a) A $230,000 sales price, b) a 60% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 3% origination fee.

If Miranda achieves her goal of a $287,500 sales price, the final numbers of the project would be as follows:

$287,500 sales price
- $138,000 principle on note (60% LTV)
- $92,000 cash paid at closing (40% on 60% LTV)
- $4,140 origination fee (3% of the $138,000 principle)
- $24,840 interest payments (18 months x 12% interest)
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= $28,520 gross profit (doesn't include taxes or renovation costs)

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