Equity Coalition

About Equity Coalition

Headquartered in San Rafael, CA, Equity Coalition is a private lender offering loans throughout the US. They offer cash out hard money loans and commercial loans. They provide loan amounts ranging from $500,000 to $20,000,000, rates starting at 6% , and terms between 5 years and 10 years. They require a minimum credit score of 650 to receive a loan. They provide loans on many property types, including multi family residences, apartments, offices, retail spaces, hotels/motels, storage buildings, senior living facilities, mixed use buildings, warehouse spaces, industrial facilities, and medical offices.

Loan Types Offered: Commercial Hard Money Loans, Refinance / Cash Out Loans

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

Areas Served: National

Lending Guidelines for Equity Coalition

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

Loan Example 1

In order to purchase a new retail space for his small business, Mario turns to Equity Coalition to fund his purchase with a commercial private money loan since he is unable to secure a conventional mortgage loan from a bank. The new property costs $290,000. Mario will have to put 45% down, or $130,500, because the lender will only loan 55% of the transaction (the loan to value or "LTV"). This means that the principle amount on the loan will be $159,500. The deal also includes a 12 month length, a 13% interest rate, interest only payments made monthly with a balloon payment when the note expires (with no pre-payment penalty), and a 5 point origination fee. Mario can eliminate the note at any time if he pays off the $159,500 in principle, but he will must make $1,728 per month interest payments ($159,500 principle value x 13% interest / 12 months per year) in the meantime, or up to the point the note expires. Because there is no pre-payment penalty, the only other cost he will have is the $7,975 origination charge which he will pay at the close.

Loan Example 2

Billy is a an investor in Santa Ana, CA. He buys an older property for a renovation project and takes out a private money loan from Equity Coalition with the following terms:

$380,000 sales price
85% loan-to-value (LTV)
18 month term
11% rate of interest
4% origination fee

Assuming a $551,000 sales price at the end of the 18 month term, the outcome for the deal would look like the following:

$551,000 sales price
- $323,000 principle (85% LTV)
- $57,000 down payment (15% on 85% LTV)
- $12,920 origination fee (4% of the $323,000 principle)
- $53,295 interest payments (18 months x 11% interest)
-----------------------
= $104,785 gross profit (doesn't include taxes or renovation costs)