Equity 1 Loans

About Equity 1 Loans

Equity 1 Loans is private lender based in Bakersfield, CA. They offer funding in Bakersfield. Their lending focus is primarily on fix-and-flip hard money loans. Their loan parameters do not require a minimum FICO score. They primarily offer loans on single family and multi-family units.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Bakersfield, Kern County

Licenses: CA Bureau of Real Estate Broker Lic #00707520

Lending Guidelines for Equity 1 Loans

Below are the general loan guidelines published on the Equity 1 Loans 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 Equity 1 Loans.

Loan Example 1

Joseph finds a property in Bakersfield, CA to remodel and re-sell. Since he doesn't have enough cash available to buy the $260,000 house outright, he takes out a hard money loan from Equity 1 Loans. The borrower will have to bring 35% of the sales price in cash to closing based on a 65% loan-to-value stipulated by the lending company. This makes the principle amount from Equity 1 Loans $169,000. The terms of the deal dictate a 11% note for 18 months. They also require a 2 point origination fee, that will also be paid at closing.

By the parameters of the loan, Joseph will be required to contribute a $3,380 origination fee plus 35% of the sales price, or $91,000, since there is a 65% LTV. Once the loan is closed and Joseph takes over the project, he will need to begin making monthly payments of $1,549 to Equity 1 Loans ($169,000 principle x 11% / 12 months). Joseph's intention is to finish the house within the 18 months and re-sell it for $351,000. If he succeeds he will make a profit of $59,735 ($351,000 price - $169,000 principle - $91,000 funds brough to closing - $3,380 origination fee - $27,885 in total interest paid.

Loan Example 2

Equity 1 Loans makes a fix and flip loan to Ramon for a renovation project in Bakersfield, CA. The loan includes the following:

a) A $170,000 purchase price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 11% interest rate, and e) a 1% origination fee.

If Ramon accomplishes his goal of a $238,000 sales price, the outcome of the deal will be as follows:

$238,000 sales price
- $102,000 loan principle (60% LTV)
- $68,000 cash paid at closing (40% on 60% LTV)
- $1,020 origination points (1% of the $102,000 principle)
- $5,610 total interest paid (6 months x 11% interest)
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= $61,370 total profit (doesn't include taxes or rehab costs)

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