EZ Construction Loan

About EZ Construction Loan

Headquartered in Cedar Ridge, CA, EZ Construction Loan is a private money lender offering loans in Northern California. They provide loans for a variety of needs and situations, including short term bridge loans, short term fix and flip loans, private commercial loans, and builder loans. They offer terms between 1 year and 3 years and loan amounts ranging from $250,000 to $1,000,000 with a maximum LTV of 60%. They do not require a minimum FICO rating to receive a loan. They offer loans on all of the following property types: single family residences, multi family residences, offices, retail spaces, industrial facilities, and mixed use.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Office, Retail, Industrial, Mixed Use

Areas Served: Northern California

Licenses: CA Dept. of Real Estate, Real Estate Brokers license #00426805, DRE file #92-880

Lending Guidelines for EZ Construction Loan

Below are the general loan guidelines published on the EZ Construction Loan 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 EZ Construction Loan.

Loan Example 1

Steve finds a duplex in Acampo, CA to rehab and sell. Since he doesn't have enough cash to acquire the $380,000 property outright, he decides to take out a private money loan from EZ Construction Loan. The borrower will need to bring 45% of the sales price in cash to closing based on a 55% loan-to-value stipulated by the lender. This makes the loan principle from EZ Construction Loan $209,000. The interest rate on the loan is 13% for a term of 18 months and the company requires a four point origination fee at the close. The interest is to be paid on a monthly basis and the principle will be repaid after the sale of the property.

According to the terms of the note, Steve will have to pay a $8,360 origination fee plus 45% of the sales price, or $171,000, based on the 55% LTV. After the loan is closed and Steve takes on the project, he will need to begin making payments each month of $2,264 to EZ Construction Loan ($209,000 principle x 13% / 12 months). Steve's intention is to complete the renovation by the end of the 18 months and sell it for $494,000. If he succeeds he will earn a gross profit of $64,885 ($494,000 price - $209,000 principle - $171,000 cash at closing - $8,360 origination fee - $40,755 in interest.

Loan Example 2

Marylou locates a duplex in Acampo, CA to remodel and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from EZ Construction Loan with the following parameters:

$240,000 sales price
75% loan to value (LTV)
6 month term
10% rate of interest
1% origination fee

Once the rehab project is finished, if Marylou sells the house for $348,000, the numbers would be the following:

$348,000 sales price
- $180,000 principle (75% LTV)
- $60,000 down payment (25% on 75% LTV)
- $1,800 origination fee (1% of the $180,000 principle amount)
- $9,000 total interest paid (6 months x 10% interest)
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= $97,200 total profit (doesn't include taxes or renovation costs)

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