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

  • Commercial Ground-Up Construction
  • Residential Ground-Up Construction

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.

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.


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