California Hard Money Lenders for Real Estate Investors
Here is a list of hard money lenders for residential and commercial real estate in California. Hard money loans are a great short-term solution for California property investors who either don’t qualify for a traditional mortgage or just need to close a deal fast. Most hard money lenders offer a maximum term of 12 months.
Talimar Financial, a direct lender in San Diego, funded a hard money cash out refinance loan secured by 8 separate residential investment properties in Riverside, California. The Borrower first approached TaliMar Financial with the loan request after conventional lenders turned them down. We quickly underwrote each property and the borrower, then offered a loan structure that allowed the borrower to pay off family members and then refinance each property individually. The loan was structured at 65% of current market value with a 1:1 debt service coverage ratio (DSCR). The loan term was 24 months with specific release prices based upon a refinance or sale of each property in the portfolio. This hard money loan was funded in February 2021.
In December 2020, TaliMar Financial funded a $1,143,100 Fix and Hold Hard Money Renovation Loan secured on a single-family home in Ocean Beach, CA. Our client will complete a cosmetic renovation and hold the property as a vacation rental. Our hard money fix and hold loan included funds for both the purchase and 100% of the renovation costs. The loan was underwritten to the completion value. The renovation funds will be disbursed to the Borrower over seven draws based upon pre-approved construction hurdles. The biggest hurdle in this transaction was the current condition of the property and the existing tenant. We were able to underwrite to the condition knowing the Borrower was intending to renovate the property and their prior experience completing similar projects. Additionally, they had the tenant agree in writing prior to close to vacate the property within 30 days of close. Once the renovations are complete and the Borrower establishes 6 to 12 months of historical income, they are able to refinance the hard money vacation rental loan with conventional bank financing. Hard money vacation rental loans have become very popular in urban markets in California. Many real estate investors use hard money lenders to fund fix and hold loans because most conventional lenders will not.
Hard Money Loan for Montecito, CA Luxury Home Rehab
Rodeo Lending, a direct hard money lender in LA, funded a $5,105,000 loan secured by a luxury home in Montecito, California. The Borrower is a repeat client that has extensive experience with residential rehab projects. He had already acquired the property and was planning a major renovation. Rodeo paid off the previous 1st mortgage and provided a new loan which included funds for the rehab, plus a 12-month interest reserve. The rehab budget will be fund controlled and released in phases. The loan-to-completed value is 60%. This iconic private enclave consists of 7,673 square feet on a .84 acre lot, with , 7 bedrooms and 4.5 baths, located on one of the best streets in Montecito, within walking distance to restaurants and shops. The Borrower plans to modernize the home and sell upon completion to exit from our loan. This hard money loan was funded in June 2020.
Hard Money Loan for Rental Home Purchase in San Leandro, CA
First Bridge Lending, a direct private lender, funded a hard money loan for the purchase of a single family investment property in San Leandro, California. The borrower is a project manager for a construction firm who was looking to purchase his first investment property to rent. He needed a short-term hard money loan just to quickly acquire the property. The sale price was $800,000. The borrowers put down 45% of the purchase price in cash. First Bridge funded the remaining 55%, a total loan amount of $440,000. The borrower plans to rent the 3-bedroom home for around $3,500/month and refinance with a conventional lender within the 12-month loan term. This hard money loan was funded in May 2020.
Hard Money Loan for La Mirada Fourplex Acquisition
SDC Capital, a direct private lender based in Burbank, funded a hard money loan for the purchase of a 4-unit residential property in La Mirada, LA County, California. A mortgage broker came to us looking for a quick closing for his client who was under contract to purchase the property. The conventional lender declined his client at the last minute, and the borrower had limited time remaining to complete her 1031 exchange. We immediately inspected the property and underwrote the value, without requiring an appraisal. We determined the value to be around $1,300,000 which puts our loan at 70% LTV. We closed the loan within 5 days. As a result, we saved the borrower's 1031 exchange and provided her with competitive terms of 8.5% interest plus 1.25 points origination fee. This loan was funded in March 2020.