Allied Equity

About Allied Equity

Based in Upland, CA, Allied Equity is an asset-based lender providing loans throughout San Bernardino. Their lending focus is primarily on fix-and-flip hard money loans. The focus of their lending is on single family units and multi-family units.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: San Bernardino, Riverside County, Los Angeles County

Licenses: BRE LIC# 01201910, NMLS LIC# 359090 & 359382, CA DRE License # 01201910, NMLS: 359382, Company ID: 359090

Lending Guidelines for Allied Equity

Below are the general loan guidelines published on the Allied Equity 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 Allied Equity.

Loan Example 1

Tyler takes a fix and flip loan from Allied Equity in order to renovate a house to flip in San Bernardino, CA. The list price of the house is $270,000. The lender agrees to make a loan with a 85% loan to value (LTV) so they are willing to extend $229,500 on the house. The parameters of the loan dictate a 13% note for 6 months. They also stipulate a 1 point origination fee, which will also have to be paid upon closing.

Accordingly, Tyler will need to contribute a $40,500 down payment plus pay a $2,295 origination fee. Allied Equity will collect $2,486 in monthly interest from the Tyler. This is calculated by taking the total loan value of $229,500, multiplying by the 13% rate of interest, and then dividing that amount by 12. At the expiration of the loan, he sells the rehabed house for $337,500. After subtracting the $14,918 in interest expenses ($2,486 multiplied times 6 months), the $2,295 origination fee, the $229,500 principle on the loan, and the $40,500 he brought to closing, he will make a total profit of $50,288 ($337,500 sales price minus $287,213 in costs). This amount would be reduced by any building costs paid by Tyler.

Loan Example 2

Kirk finds a house in San Bernardino, CA to remodel and resell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Allied Equity with the following parameters:

$190,000 sales price
55% loan to value (LTV)
6 month term
14% rate of interest
5% origination fee

Kirk intends to list the property at the end of the term for $266,000. If he accomplishes his goal, the final numbers would be as follows:

$266,000 sales price
- $104,500 principle on note (55% LTV)
- $85,500 down payment (45% on 55% LTV)
- $5,225 origination fee (5% of the $104,500 principle)
- $7,315 interest payments (6 months x 14% interest)
-----------------------
= $63,460 total profit (does not include taxes or renovation costs)