Family Office Lender for Real Estate in California

SDC Capital offers the fastest, easiest and most transparent lending process available in the market today.  Because we are a family office, we lend at lower rates than your typical private lender — with rates as low as 6.99% (9.99% for 2nd liens)– while also providing borrowers with certainty of closing.  We lend with our own money and are the decision makers on every deal.  As such, we do not rely on individual private investors to fund each loan.  This eliminates delays, retrades or vague and ambiguous answers.  Also, because of our core real estate development background, we understand even the most complex loan scenarios, allowing us to price these deals more competitively.  We specialize in multifamily (5+), in addition to office/industrial/retail (including Cannabis – landlord finance only).  Work with SDC Capital if you want clear answers and a straightforward loan process.

 

Loan Amounts

$100,000 to $5,000,000

Interest Rates

6.99% to 9.99%

Max Loan-To-Value

75.00%

Max Loan-To-Cost

80.00%

Origination Fees

0% to 2%

Loan Terms

3 months to 24 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

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
  • Cannabis Dispensary
  • Cannabis Grow Facility
  • Commercial Condominium
  • Commercial Land
  • Condominium
  • Industrial
  • Mixed-Use
  • Multifamily
  • Office
  • Parking Lot
  • Portfolio of Commercial Properties
  • Portfolio of Residential Properties
  • Rehabilitation Facility
  • Residential Land
  • Retail
  • Single Family Residence
  • Student Housing
  • Vehicle Parking

Loan Types

  • Private Money
  • Hard Money
  • Commercial Bridge
  • Residential Bridge
  • Commercial Property Value Add
  • Residential Fix and Flip
  • Residential Rehab and Rent
  • Commercial Ground-Up Construction
  • Residential Ground-Up Construction
  • Mezzanine

Specialty Loan Types

  • 2nd Mortgage Equity Cash Out
  • Residential Long-Term Rental
  • Note Purchase
  • Reverse 1031 Exchange
  • Partner Buyout
  • Discounted Note Payoff
  • Bankruptcy Resolution
  • Cannabis Use Properties
  • Primary Residence Bridge
  • Primary Residence Business Purpose Cash Out
  • Transactional Funding

Junior Liens

Junior Lien Loan Amounts

$100,000.00 to $1,500,000.00

Junior Lien Interest Rates

9.00% to 10.99%

Junior Lien Loan-to-Value

75.00%

Junior Lien Loan-to-Cost

80.00%

Junior Lien Origination Fees

0% to 2.00%

We Fund Junior Position Loans

Often

Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out
  • Mezzanine

Land Loan

Land Types Considered

  • Residential Land
  • Multifamily Land
  • Industrial Land
  • Office Land
  • Retail Land

Will Consider Land That is NOT Entitled

yes

Existing Land Improvements Required

  • Street Access

Max LTV for Land

50.00%

Max LTC for Land Acquisition

50.00%

Purchase Loan

Max Loan-To-Purchase Price

80.00%

Borrower Must Have Property Under Contract

yes

Will Provide Proof of Funds Letter

no

Will Consider Lending on Purchase from Auction

yes

Allowed Source of Borrower’s Equity

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

Rehab Value Add Loan

Experience Required

yes

Minimum Number of Value-Add Projects Completed by Borrower

1

Will Provide Funds for Renovation Costs

yes

Max LTC for Renovation Costs

75.00%

Interest Charged for Renovation Costs

Entire Amount of Total Project Costs

Typical Number of Days for Funds Draw

5

Construction Loan

Development Experience Required

yes

Minimum Number of Ground-Up Construction Projects Completed by Borrower

1

Max LTC for Ground-Up Construction Costs

75.00%

Interest Charged for Construction Costs

Entire Amount of Total Project Costs

Will Lend on Partially Completed Construction Projects

yes

Details and Requirements

Typical Closing Time (Days)

10

Fastest Closing Time (Days)

3

Works With

  • Brokers
  • Borrowers

Payment Structure

  • Interest Only
  • Amortized
  • Interest Reserve

Pre Payment Penalty

yes

Typically we have a minimum interest provision of 0-6 months.

Will lend to a foreign national

yes

Must have U.S. bank account

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

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered

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

Documentation Required

  • Credit Report
  • Loan Application

Personal Guaranty (Recourse) Required

Sometimes

Credit Check Required

yes

Minimum Credit Score Required

500

Appraisal Required for Residential Property

Sometimes

Appraisal Required for Commercial Property

Sometimes

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Sometimes

Fees

Documents Fee

Typically $1,495, depending on complexity of loan scenario.

Escrow Fee

Customary 3rd-party escrow fees.

Title Fee

Customary 3rd-party title fees.

Extension Fee

Typically zero to 1 point

Fees which are mandatory for all new borrower clients

  • Escrow Fee
  • Title Fee

Fees which are paid to a third party company

  • Documents Fee
  • Escrow Fee
  • Title Fee

Legal Disclaimer

SDC Capital is willing to offer these terms, which are in no way binding and is subject to satisfactory due diligence in the sole and absolute discretion of SDC Capital.

SDC Capital has over 35 years of bridge lending and real estate development experience.  Because we are more of a family office, we lend at lower rates than your typical private lender, with rates as low as 6.99%, while also providing borrowers with certainty of closing.  We lend with our own money and are the decision makers on every deal.  As such, we have closed deals in 3 days when necessary.  Also, because of our core real estate development background, we understand even the most complex loan scenarios, allowing us to price these deals more competitively.  Over 40% of our business is from repeat brokers and borrowers, because of our lower pricing and our certainty of closing.  For borrowers and brokers seeking immediate funding, SDC Capital offers the fastest, easiest and most transparent process available in the market today.

License

CalBRE #00828051, NMLS #248271

Established

1981

Associations

  • California Mortgage Association - Member

Office Locations

Main Office
4001 Burbank Boulevard , Burbank, California, 91505

Orange County Office
200 Spectrum Center Dr, Irvine, California, 92618

Primary Capital Source

  • Own Funds

Alternative Capital Sources

  • Individual Investors
  • Bank Credit Line

Loan Structure for Majority of Loans

  • Own Balance Sheet

Alternative Loan Structures

  • Multiple Lender Participation

Percentage of company’s lending business focused on private mortgage

100%

Company’s Other Business Activities Besides Private Mortgage Lending

  • Note Investing
  • Real Estate Development

Percentage of Loans Secured by Commercial Property

50%

Percentage of Loans Secured by Residential Property

50%

Percentage of Residential Property Loans Which are Fix and Flip

40%

Percentage of Residential Property Loans Which are Buy and Hold

60%

Percentage of Residential Property Loans Which are Owner-Occupied

15%

Percentage of Loans Secured by Land

15%

Percentage of Loans Secured by a Business (not real estate)

0%

Percentage of Commercial Property Loans Which are Ground-Up Construction

0%

Percentage of Residential Property Loans Which are Ground-Up Construction

0%

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

0%

Total Loan Volume Funded to Date

$750,000,000

2017 Loan Volume Funded

$110,000,000

Kevin Arrabaca

Principal

Kevin joined SDC Capital in 2016. He is responsible for the strategy and organization of SDC Capital’s lending platform and serves on the firm’s investment committee. Kevin has a Bachelor of Science in Business Administration from the University of Southern California. Kevin has extensive experience in the finance industry. He is a co-founder of AssetAvenue, Inc., served as the Chief Investment Officer at Our Castle Funds, worked as an investment banker at Lehman Brothers and Houlihan Lokey and held various real estate management positions at American Capital and Colony Capital. To the regret of some SDC staff, Kevin remains an active Trojan alumnus.

Shawna Phelan

Principal

Shawna joined SDC Capital in 2006 and oversees all aspects of SDC Capital’s lending platform, heads the firm’s investment committee, is responsible for the financial oversight of all company operations and is involved in the placement of debt and equity for each real estate project. Shawna has a Master’s Degree in Business Administration (MBA) from the UCLA Anderson School of Management and a Bachelor’s Degree in Accounting from the University of San Diego. Shawna is also a Certified Public Accountant and is licensed by the State of California as a Real Estate Salesperson and a Mortgage Loan Originator. Prior to joining SDC, she was a Vice President in Lehman Brothers Investment Banking Division, the Controller at Relational Investors and an auditor at Arthur Andersen. At home, Shawna enjoys spending time with her three daughters and husband and when time allows, getting away for the weekend with her family to Santa Ynez.

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.

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

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

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

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

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how will the loan be paid off?

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