Los Angeles Private Money Lenders for Real Estate Investors

SDC Capital, a direct lending firm in Burbank, funded a $1,589,000 private money loan for the purchase and rehab of a 6-unit multifamily building in Los Angeles. The Borrower, a repeat client, was under contract to buy the property which needs a lot of work, including a soft-story retrofit. The Borrower’s plan is to renovate the entire property and bring rents up to market. They needed a bridge loan that included cash to help fund the renovations. They knew they could count on SDC to quickly deliver fair and simple terms. We inspected the property ourselves to confirm the value and loan-to-value of 72%. Our familiarity with the Borrower and their execution allowed us to confidently underwrite this loan and close fast with very competitive pricing. The interest rate was 7.90%, and we only charged 1 point for the origination fee. The loan term was set at 12 months. This private money loan was funded in February 2021.

SDC Capital, a direct private lender based in Burbank, funded a $754,000 1st lien position private money loan for a single-family rental home in Van Nuys, Los Angeles County, CA. A mortgage broker came to us to refinance their client’s recently completed rehab project as their existing loan was coming due. The Borrower was denied by a conventional lender as the bank would not give credit for the rental income on the accessory dwelling unit that was recently added to the property. SDC recognized the value added by the ADU and determined the LTV to be 65%. Given our ability to underwrite the property value ourselves, no appraisal was required and we were able to close the loan quickly. Our interest rate was 8.5% plus an origination fee of 50 basis points. This private money loan was funded in October 2019.

SDC Capital, a direct private lender based in Burbank, funded a $596,750 1st lien position bridge loan for the acquisition of a 5-unit multi-family property in Bell Gardens, Los Angeles County, CA. The Borrower, a repeat client, plans to renovate the property, increase rents and refinance our loan with a conventional loan upon completion of the rehab project. The Borrower put up 35% of the total project costs, and we funded the remaining $596,750 loan. The renovations will increase the value and result in a 55% LTV. Our interest rate was 6.99% with a loan term of 12 months and no pre-payment penalties. We also did not require an appraisal. This private money bridge loan was funded in June 2019.

SDC Capital, a direct private lender based in Burbank, funded a $900K cash-out loan secured by a multi-family property located in the Koreatown neighborhood of Los Angeles, California. The Borrower needed the cash to invest in another investment property. There were a number of challenges with a title that we had to work through. The property has 9 units, and some of them had rents way below market, so the property did not meet traditional financing income requirements. We paid off the previous 1st mortgage of $600,000 and provide $300,000 cash out. We did our own valuation in-house and determined the value to be $1,600,000 so the loan-to-value was around 63%. We charged 8.99% interest and a 1-point origination fee. The Borrower plans to refinance within the 12-month term, but we are prepared to offer an extension if the rents are not stabilized by then. This cash-out refinance bridge loan was funded in January 2019.