Loughead returned to San Francisco in 1912 and went to work as an auto mechanic.[3] There, he and his brother Malcolm spent their spare time building a three-place seaplane to operate from San Francisco Bay.[3] They constantly ran out of money until they convinced Max Mamlock of the Alco Cab Company to invest $4,000 in the plane.[3] Finally, after 18 months, their Model G was christened the ALCO NO. 1 in 1913, and Allan Loughead made a successful flight in it from the waters of the Golden Gate entrance to San Francisco Bay.[3]