Ellis Equity

About Ellis Equity

Ellis Equity is a hard money lender based in Houston, TX offering loans throughout Houston. They offer commercial hard money loans, rental property loans, refinancing, and fix-and-flip loans. They provide terms between 6 months and 24 months and loan amounts ranging from $100,000 to $10,000,000. They will make loans on the following types of properties: single family residences, multi family, apartment buildings, office units, retail spaces, hotels, storage facilities, senior communities, mixed use spaces, undeveloped land, churches, warehouse spaces, industrial facilities, and medical facilities.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Land, Church, Warehouse, Industrial, Medical

Areas Served: Houston

Lending Guidelines for Ellis Equity

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

Loan Example 1

Sadie closes on a $190,000 renovation project in Houston, TX, using a hard money loan from Ellis Equity. The lender agrees to write a note with a 60% loan-to-value (LTV) so they are willing to loan $114,000 on the house. The parameters of the deal also include a four percent origination fee which will be paid at closing and a 6 month, interest-only note with a 13% rate of interest.

Accordingly, Sadie will be required to contribute a $76,000 down payment in addition to paying a $4,560 origination fee. After the loan is closed and Sadie takes the property, she will need to begin making monthly payments of $1,235 to Ellis Equity ($114,000 principle x 13% / 12 months). If Sadie sells the project for $285,000 after 6 months, she would then realize a gross profit of $83,030 after deducting the principle of $114,000, the funds paid at closing of $76,000, the origination fee of $4,560, and the aggregate interest payments of $7,410. This profit does not account for remodeling costs.

Loan Example 2

Harold locates a house in Houston, TX to renovate and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Ellis Equity with the following parameters:

a) A $280,000 purchase price, b) a 75% loan-to-value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 5% origination fee.

Harold intends to list the property when the note expires for $350,000. If he achieves this goal, the final numbers would be as follows:

$350,000 sales price
- $210,000 principle on note (75% LTV)
- $70,000 down payment (25% on 75% LTV)
- $10,500 origination points (5% of the $210,000 principle)
- $31,500 total interest paid (18 months x 10% interest)
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= $28,000 gross profit (does not include taxes or rehab costs)

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