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About Equity Group
Equity Group is a Shawnee, KS based private lender. They provide funding in Kansas City. Their focus is primarily on fix-and-flip loans. They will consider different lending requests but generally focus on single family units and multi-family.
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Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Kansas City
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Lending Guidelines for Equity Group
Below are the general loan guidelines published on the Equity Group website. Please confirm all terms and rates directly with the lender.
Fix and Flip Loans
Loan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A -
Loan Examples
The following loans are for education purposes only. They do not represent actual loans executed by Equity Group.
Loan Example 1
Matthew finds a condo in Kansas City, KS to rehab and re-sell. Since he does not have enough cash on-hand to acquire the $220,000 house outright, he decides to take out a fix and flip loan from Equity Group. The borrower will have to bring 25% of the purchase price in cash to the closing based on a 75% loan-to-value set by the lending company. This makes the principle note from Equity Group $165,000. The loan also consists of these features: 1) a 18 month length, 2) a 14% interest-only note, and 3) a three point origination charge.
Matthew will need to fund a total of $32,400 up front to cover the $55,000 down payment plus the $4,950 origination fee. Once the loan is closed and Matthew takes over the project, he will begin making monthly payments of $1,925 to the lender ($165,000 principle x 14% / 12 months). Assuming he sells the rehabed project for $330,000 at the end of the 18 month term, his total profit (not accounting for remodeling expenses) would be $70,400. This is calculated by taking the purchase price ($330,000) and subtracting the original principle ($165,000), the origination fee ($4,950), the money he contributed to closing ($55,000), and the total interest expenses ($34,650).
Loan Example 2
Equity Group issues a private money loan to Trisha for a renovation project in Kansas City, KS. The deal dictates the following:
a) A $180,000 purchase price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 2% origination fee.
Based on a $252,000 sales price after the 18 month term, the final numbers for this deal would look like this:
$252,000 sales price
- $90,000 loan principle (50% LTV)
- $90,000 down payment (50% on 50% LTV)
- $1,800 origination points (2% of the $90,000 principle amount)
- $10,800 interest payments (18 months x 8% interest)
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= $59,400 gross profit (does not include taxes or rehab costs) -
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