American Equity Service

About American Equity Service

American Equity Service is an asset-based lender in Citrus Heights, CA offering funding throughout Sacramento. They offer loans for many different needs and situations, including refinancing and fix-and-flip hard money loans. They provide rates ranging from 9.99% and loans with a maximum LTV of 65%. They make loans on all the following types of properties: single family units, multi family, apartments, offices, retail storefronts, industrial facilities, and mixed use buildings.

Loan Types Offered: Fix and Flip Loans, Refinance / Cash Out Loans

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

Areas Served: Sacramento

Lending Guidelines for American Equity Service

Below are the general loan guidelines published on the American Equity Service 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 American Equity Service.

Loan Example 1

Phillip is a house flipper in Sacramento, CA. He finds an older property for sale and wants to remodel it and flip it for a profit. The property costs $270,000 but he does not have the full amount so he takes out a hard money loan with American Equity Service. The loan to value (LTV) on the loan is 50%. This means that Phillip will bring 50% of the sales price to the closing and the principle will be $135,000 on the loan. The rate on the loan is 11% for a length of 6 months and the company requires a two point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be paid back after the property sells.

Phillip must fund a total of $32,400 up front to pay the $135,000 down payment plus the $2,700 origination fee. he will then pay $1,238 per month to American Equity Service. At the end of the note, he sells the rehabed property for $364,500. After deducting the $7,425 in interest payments ($1,238 times 6 months), the $2,700 origination fee, the $135,000 principle on the note, and the $135,000 he contributed to the closing, he will earn a total profit of $84,375 ($364,500 price minus $280,125 in total costs). This amount would then be reduced by any renovation costs paid out of pocket.

Loan Example 2

Mario takes out a private money loan from American Equity Service so he can rehab a house to resell in Sacramento, CA. The loan has the following parameters:

$380,000 sales price
85% loan to value (LTV)
18 month term
8% rate of interest
4% origination fee

Mario plans to sell the property at the end of the term for $532,000. If he accomplishes his goal, the outcome will be the following:

$532,000 sales price
- $323,000 principle on note (85% LTV)
- $57,000 cash paid at closing (15% on 85% LTV)
- $12,920 origination fee (4% of the $323,000 principle)
- $38,760 interest payments (18 months x 8% interest)
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= $100,320 gross profit (does not include taxes or rehab costs)

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