California Hard Money Lender with Soft Money Terms

Ground-Up Construction | Rehab Fix & Flip | Rental Bridge Loans

We specialize in construction and rehab loans, but we also offer commercial loans, bridge loans and various consumer purchase loans. Whatever you need, we’re here to get your loan funded, fast. Our company was established in 1950, and we invite you to join our ever-increasing list of satisfied borrowers who’ve made us the go-to choice for loans in the San Francisco Bay Area, Sacramento, Los Angeles, San Diego and other parts of California.

Property Geographic Area Details

Non-rural areas throughout Northern California

Loan Amounts

$100,000 to $3,000,000

Interest Rates

7.99% to 10.99%

Max Loan-To-Value


Max Loan-To-Cost


Origination Fees

1.5% to 4%

Loan Terms

6 months to 60 months

Lien Position

  • 1st
  • 2nd

Loan Purpose

  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Use Equity to Invest in Another Property
  • Invest in a Business
  • Business Working Capital
  • Value Add Project
  • Development Project
  • Primary Residence Purchase
  • Personal Use

Property Occupancy

  • Vacant
  • Tenant Occupied 100%
  • Owner Occupied Commercial
  • Owner Occupied Residential

Property Types and Loan Types

Collateral Types

  • Residential Property
  • Commercial Property

Property Types

  • 2-4 Units Residential
  • Adult Day Care
  • Assisted Living Facility
  • Auto Dealership
  • Auto Repair
  • Bed and Breakfast
  • Commercial Condominium
  • Condominium
  • Cooperative
  • Healthcare
  • Manufactured Home
  • Mixed-Use
  • Mobile Home Park
  • Multifamily
  • Office
  • Parking Lot
  • Rehabilitation Facility
  • Retail
  • Senior Housing
  • Single Family Residence
  • Storage Facility
  • Student Housing
  • Vehicle Parking

Loan Types

  • Residential Fix and Flip
  • Residential Rehab and Rent
  • Commercial Ground-Up Construction
  • Residential Ground-Up Construction
  • Residential Owner-Occupied

Specialty Loan Types

  • 2nd Mortgage Equity Cash Out
  • Land Development
  • Condo Conversion
  • Residential Long-Term Rental
  • Note Purchase
  • Reverse 1031 Exchange
  • Partner Buyout
  • Discounted Note Payoff
  • Primary Residence Bridge
  • Primary Residence Business Purpose Cash Out
  • Residential Non-Prime
  • Transactional Funding
  • Subdivisions

Junior Liens

Junior Lien Loan Amounts

$100,000 to $3,000,000

Junior Lien Interest Rates

9% to 12%

Junior Lien Loan-to-Value


Junior Lien Loan-to-Cost


Junior Lien Origination Fees

2% to 5%

We Fund Junior Position Loans


Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out
No less than 25% of the First Loan amount.

Purchase Loan

Will allow junior liens, but must have at least 10% skin in the game.

Max Loan-To-Purchase Price


Borrower Must Have Property Under Contract


Will Provide Proof of Funds Letter


Will Consider Lending on Purchase from Auction


Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Subject Property
  • Equity in Another Investment Property
  • Equity in Primary Residence
  • Seller Financing
  • Gap Lender
  • Crowdfunding
  • Family

Rehab Value Add Loan

Experience Required


Minimum Number of Value-Add Projects Completed by Borrower


Will Provide Funds for Renovation Costs


Max LTC for Renovation Costs


Interest Charged for Renovation Costs

Entire Amount of Total Project Costs

Typical Number of Days for Funds Draw


Maximum After Repair Value


Construction Loan

Lien releases required. We only fund the vertical construction and will not fund a land purchase. The land must be owned and entitled.

Development Experience Required


Minimum Number of Ground-Up Construction Projects Completed by Borrower


Max LTC for Ground-Up Construction Costs


Interest Charged for Construction Costs

Only on Funds Drawn

Will Lend on Partially Completed Construction Projects


Details and Requirements

Typical Closing Time (Days)


Fastest Closing Time (Days)


Works With

  • Brokers
  • Borrowers

Payment Structure

  • Amortized

Payment Structure Details

30-year amortization

Pre Payment Penalty


Will lend to a foreign national


Must have TIN or SSN

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage


Will Consider Collateralizing Multiple Properties in One Loan


Will Consider Equity Joint Venture


Borrower Entity Types Considered

  • Individual(s)
  • LLC
  • Limited Partnership
  • Trust
  • Corporation
  • Non-Profit Corporation
  • Self-Directed IRA

Documentation Required

  • Credit Report
  • Financial Statements
  • Loan Application

Personal Guaranty (Recourse) Required

We generally make recourse loans.

Credit Check Required


Minimum Credit Score Required


Credit Check Description

The lower the credit score the lower the LTV.

Appraisal Required for Residential Property


Appraisal Required for Commercial Property


Broker Price Opinion (BPO) Accepted for Residential Property


Broker Price Opinion (BPO) Accepted for Commercial Property



Documents Fee

$695 Doc fee and $225 Assignment Fee

Inspection Fee

Inspection fees for construction loans vary depending on scope of work.

Escrow Fee

normal escrow fees apply

Title Fee

normal title fees apply

Extension Fee

We generally charge an extension fee upon maturity

Appraisal Fee

normal appraisal fees apply

Environmental Report Fee

Phase 1 reports required for most commercial loans

Minimum Origination Fee Amount


Fees which are mandatory for all new borrower clients

  • Documents Fee
  • Appraisal Fee
  • Renovation or Construction Funds Draw Fee

Fees which are charged upfront prior to loan closing

  • Appraisal Fee

Fees which are paid to a third party company

  • Appraisal Fee
  • Escrow Fee
  • Title Fee
  • Environmental Report Fee
  • Renovation or Construction Funds Draw Fee

Legal Disclaimer

These parameters do not constitute a commitment to lend. These are guidelines only.

Additional Details

Sometimes we disburse construction funds in-house and charge fees. Loans are made or arranged pursuant to a California Finance Lender's License #6054500.

Herzer Financial Services, Inc. (HFS) offers private real estate loans for consumers and real estate investors located in California. We make ground-up construction loans, fix and flips, bridge loans, consumer loans, commercial, refinance, and purchase money loans. A significant percentage of real estate loans—such as fix and flips—rely on private money funding, as banks consider them unnecessarily risky. That’s where we come in. Typically, Herzer Financial Services, Inc. provides loans up to $3M and up to five-year terms.

Ensuring that each customer receives quick and reliable service is an integral part of the Herzer Financial Services, Inc. mission. That’s why the majority of our borrowers come to us from loan broker referrals and word of mouth. In fact, some of our borrowers have worked with us for over a decade.

Herzer Financial Services, Inc. is licensed by the California Bureau of Real Estate (BRE) and the Department of Business Oversight (DBO), and holds an NMLS credential from the Federal Government. We submit annual reports to all three regulators, and quarterly reports—tested by our accountant—to the BRE. We have excellent references, and are happy to provide them upon request.

We are headquartered in Redwood City in the San Francisco Bay area and remain an active member of the California Mortgage Association, an organization dedicated to promoting education and excellence in the private lending .

Herzer Financial Services, Inc. has provided borrowers unsurpassed service in the private money real estate lending field since its founding in 1950 by Fred Herzer, Jr. Over time, we’ve earned a reputation for helping borrowers leverage their real estate holdings with creative, efficient and flexible loan programs. Herzer Financial Services, Inc. has been owned and operated by David Herzer since 1995.


CA DRE Lic. 00417082, CFL License 6054500, NMLS ID 314253

Company Size (Number of Employees)


Year Established



  • California Mortgage Association - Member

Office Locations

Herzer Financial Services, Inc.,
1779 Woodisde Road 201A, Redwood City, California 94062

Primary Capital Source

  • Own Funds
  • Individual Investors
  • Bank Credit Line
  • Private Equity Funds

Loan Structure for Majority of Loans

  • One Investor One Loan
  • Multiple Investor Fractionalized Note
  • LLC Syndicated Investors

Percentage of company’s lending business focused on private mortgage


Company’s Other Business Activities Besides Private Mortgage Lending

  • Residential Mortgage Brokerage

Percentage of Loans Secured by Commercial Property


Percentage of Loans Secured by Residential Property


Percentage of Residential Property Loans Which are Fix and Flip


Percentage of Residential Property Loans Which are Buy and Hold


Percentage of Residential Property Loans Which are Owner-Occupied


Percentage of Loans Secured by Land


Percentage of Commercial Property Loans Which are Ground-Up Construction


Percentage of Residential Property Loans Which are Ground-Up Construction


Percentage of Residential Property Loans Which are Long-Term Rental (5+ years)


Total Number of Loans Funded to Date


Total Loan Volume Funded to Date


2017 Number of Loans Funded


2017 Loan Volume Funded


2018 Number of Loans Funded


2018 Loan Volume Funded


David Herzer


Herzer has served as a licensed real estate broker for 29 years. He is actively involved with California Mortgage Association (CMA), the trade association for private real estate lenders. He has served on its board of directors for eight years, is chair of the CMA website committee and is a member of the nominating and finance committees. He has also served on educational panels for CMA and the California Association of Mortgage Professionals (CAMP). In addition, Herzer is a member of the board of directors for the CK Foundation, former director of the Menlo Park Rotary Club and contributes to the Berkeley Food Project, Rebuilding Together, the Kentfield Schools Foundation and several other charities. He graduated with a Bachelor of Arts degree from the University of California at Berkeley.

License Information
CA DRE Broker Lic. - 00870373
MLO License - 317968

Bill Lercari

Loan Officer

License Information
CA DRE Lic. - 00797583

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.


At the end of the form you can enter the additional properties.

(temp use, storage, billboard, parking, etc.)


If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.


(temp use, storage, billboard, parking, etc.)


If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.


how will the loan be paid off?


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