Equity Secured Capital

About Equity Secured Capital

Equity Secured Capital is an Austin, TX based hard money lender who offers loans throughout Texas. They offer commercial loans, fix and flip loans, and loans for investments properties. They offer loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 75%, rates ranging between 9.5% and 12.5%, and terms up to 3 years. They are able to lend money to any borrower based on the property value but also require a minimum FICO score of 550. They will make loans on various property types, including single family, multi-family units, apartments, offices, retail spaces, hotels and motels, storage facilities, senior communities, mixed use spaces, undeveloped land, churches, warehouse spaces, industrial buildings, and medical facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

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

Areas Served: TX

Lending Guidelines for Equity Secured Capital

Below are the general loan guidelines published on the Equity Secured Capital 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 Secured Capital.

Loan Example 1

Equity Secured Capital issues a private money loan to Darrell for a rehab project in Houston, TX, on a house that is listed for $360,000. The loan to value (LTV) on the deal is 55%. This means Darrell will need to bring 45% of the sales price to closing and the principle amount will be $198,000 on the deal. The deal also consists of these features: 1) a 12 month term, 2) a 13% interest-only note, and 3) a two point origination fee.

Accordingly, the borrower will be required to make a $162,000 down payment plus pay a $3,960 origination fee. Once the deal closes, he will have to pay the lender $2,145 in monthly interest fees, or 13% multiplied times $198,000 divided by 12 months in the year. At the expiration of the loan, he sells the renovated house for $486,000. After deducting the $25,740 in interest expenses ($2,145 multiplied times 12 months), the $3,960 origination fee, the $198,000 principle amount on the loan, and the $162,000 he brought to closing, he will make a total profit of $96,300 ($486,000 price minus $389,700 in costs). This profit would then be reduced by any building costs paid by the borrow.

Loan Example 2

Equity Secured Capital makes a private money loan to Julia for a remodeling project in Houston, TX. The loan dictates the following:

a) A $260,000 sales price, b) a 65% loan to value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 4% origination fee.

Based on a $364,000 sales price after the 18 month term, the outcome for this project would look like the following:

$364,000 sales price
- $169,000 note principle (65% LTV)
- $91,000 down payment (35% on 65% LTV)
- $6,760 origination fee (4% of the $169,000 principle amount)
- $25,350 interest payments (18 months x 10% interest)
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= $71,890 gross profit (does not include taxes or renovation costs)

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