Aegis Funding

About Aegis Funding

Aegis Funding is hard money lender based in Huntington Beach, CA. They provide loans throughout California. They offer lending solutions for a variety of needs and situations, including fix and flip loans and long term rental property loans. They issue rates ranging between 9.25% and 12.5%, loans with a maximum LTV of 90%, and terms up to 1 year. They primarily make loans for single family and multi family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Licenses: License BRE 1856655

Lending Guidelines for Aegis Funding

Below are the general loan guidelines published on the Aegis 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 Aegis Funding.

Loan Example 1

Wesley takes a fix-and-flip loan from Aegis Funding in order to renovate a duplex to resale in Los Angeles, CA. The sales price of the house is $320,000. The borrower will be required to contribute 15% of the sales price in cash to closing based on a 85% loan to value stipulated by the lending company. This makes the principle note from Aegis Funding $272,000. The interest rate on the note is 9% for a term of 12 months and the lender requires a one point origination fee at the closing. The interest payments are to be paid monthly and the principle will be paid back after the property sells.

Wesley will need to bring $48,000 to the closing (15% on the 85% LTV), plus he will need to pay the $2,720 origination fee. The monthly interest-only payments will then be $2,040 to Aegis Funding. At the end of the note, he sells the rehabed house for $400,000. After subtracting the $24,480 in interest expenses ($2,040 times 12 months), the $2,720 origination fee, the $272,000 principle amount on the note, and the $48,000 he contributed to closing, he will earn a gross profit of $52,800 ($400,000 sales price minus $347,200 in costs). This amount would be reduced by any renovation costs paid by Wesley.

Loan Example 2

Rick locates a house in Los Angeles, CA to renovate and sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Aegis Funding with the following parameters:

a) A $380,000 purchase price, b) a 80% loan-to-value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 2% origination fee.

Once the renovation project is completed, if Rick sells the house for $513,000, the final numbers would be the following:

$513,000 sales price
- $304,000 note principle (80% LTV)
- $76,000 down payment (20% on 80% LTV)
- $6,080 origination points (2% of the $304,000 principle)
- $45,600 interest payments (18 months x 10% interest)
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= $81,320 total profit (doesn't include taxes or renovation costs)