Los Angeles Hard Money Lenders for Real Estate Investors

Los Angeles Hard Money Insights from a Local Lender

The demand for housing in Los Angeles and Southern California in general has been and continues to be high among residents and real estate investors. The current market, however, is experiencing a significant challenge of insufficient inventory due to rising interest rates. This has brought on huge competition among real estate inventors as well as hard money lenders. According to Sam Chivitchian of Secured Capital Lending, the lack of inventory in the real estate market is attributed to two factors, the increasing population in Southern California year after year and the low interest rates people had locked in during the pandemic. He says, “We’re dealing with a real estate market where there’s not enough inventory, there’s not enough sellers. Nobody wants to get out of a 2-3% interest rate that they locked in the last 8-9 years and go into a 7% or 8%. So the only true sellers that you’re really seeing today are real estate investors who most of them need private money, hard money loans.”

Sam says that despite high interest rates nationwide, California’s interest rates are comparatively lower due to its status as the most competitive state with hard money lenders. He explains, “there’s more lenders than any other state. Borrowers are a little bit more spoiled here in California, have more options and can pick and choose which lenders they want to work with as far as the competition. And I think with the national lenders, obviously, they have more capital available since they’re more institutionalized and might have slight better interest rates depending on the loan product. But in general, the local lenders who’ve been around the block can move much quicker than the national lenders who have to rely mostly on third party diligence and third party valuations.”

Popular Markets in Los Angeles for Real Estate Investors to Consider

According to Secured Capital Lending, in the last 5 to 7 years, the San Fernando Valley has become a growing market, especially for fix and flip projects. Sam says that as the west side continues to become more expensive, more people are migrating to the valley, which is increasing the demand for housing. Investors are seeing this as an opportunity and are jumping on fix and flip properties, as well as lots of land they can develop on. “There’s a lot of development going on, a lot of construction to a point where it doesn’t feel like the valley anymore and becoming more like the city,” Sam says.

The strongest markets today are Encino, Tarzana, Sherman Oaks and North Hollywood. Sam says the competition in these areas has increased, and properties are selling fast, so if investors want to get in the game they need to move fast.

Secured Capital Lending, Inc. is a direct private lending company specializing in financing both commercial and residential properties. They offer various attractive loan products such as fix and flip, rehab, bridge, construction, refi – cash out, 2nd trust deeds. The asset types they are most interested in financing are, SFR, multi-family, industrial, retail, office, mixed-use, car wash, gas stations, and hospitality. On a national level they will go up to a loan amount of $3 Million, but for properties in California they will entertain higher loan amounts on residential and multifamily properties. View their profile to learn more and to find their contact information.

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