Orange County Private Money Lenders for Real Estate Investors
Seeking a private money loan secured by real estate in Orange County? On this page you'll find a list of direct private money lending companies that offer fast funding for an Orange County property purchase, refinance, or equity cash out in 1st lien position. Private money loans are for short term (3-24 months) and primarily qualify based on equity in the subject property, at least 30% for most lenders. So you'll need a 30%+ down payment for a purchase, and for a refinance, the maximum loan-to-value is 70%.Searching...
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SDC Capital
Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.
Diversified Mortgage
Multifamily Bridge Loans only. Interest Rates are 8.5% for 4-year term, 8.25% for 2 years, 7.95% for 1 year.
Select a Metro Area
California is a large state, and many private lending companies focus on particular metropolitan areas. Filter your search by selecting a metro area:
Northern California: SF Bay Area | Sacramento | Lake Tahoe
Southern California: Los Angeles | San Diego | Orange County | Riverside County | San Bernardino County | Santa Barbara
Central California: Central Valley | Bakersfield | Fresno
California Private Money Interest Rates
According to the private money loan documents software company, Lightning Docs, the average interest rate for California private money loans in the 1st quarter of 2024 was 11.23%. The average loan amount was $659,373. These stats are the average of 877 short-term loans (including bridge, rehab, and ground-up construction) funded for investment properties in California between January 1, 2024 and March 31, 2024 by multiple private lending companies that use Lightning Docs as their preferred software provider to prepare loan documents.
According to private lending data provider, Analytics Logics, the average interest rate for California private money loans in the 1st quarter of 2024 was 10.69%. Lenders charged an average of 1.4% points (origination fee). The average LTV (loan-to-value) for private money loans in California was 64%, and the average loan amount was $808,910. These stats are the average of all the loans which were funded between January 1, 2024 and March 31, 2024 by the many private lenders who use Liquid Logics’ loan origination software to manage their lending operations.
Top 10 California Private Lenders
According to Forecasaâ„¢, here are the Top 10 Private Lenders ranked by the number of private mortgage loans originated in California in the last 12 months from March 2024.
- Kiavi
- Anchor Loans
- Val Chris Investment Inc
- Center Street Lending
- Conventus LLC
- Easy Street Capital
- Provident Trust Group
- Merchants Mortgage and Trust Corporation
- Fundloans Capital
- Genesis Capital
Forecasaâ„¢ provides analytics data for California private lending on a quarterly basis. You’ll find their top lenders data for many other states on our platform.
California Private Money Lending Guidelines
California has lots of “private money” and lots of professional private money lending companies that offer short-term loans secured by real estate. It’s mainly for investment properties, but California has some unique laws that enable private lenders to fund loans secured by a borrower’s primary residence. Here are the typical private money lending guidelines for most lenders in California:
- Loan Amounts: $50,000 to $20,000,000
- Interest Rates: 9% to 13%
- Origination Fee: 1 to 3 points
- Maximum LTV for Senior (1st) Lien: Up to 70%
- Maximum CLTV for Junior Liens: Up to 65%
- Lien Position: 1st, 2nd or 3rd
- 2nd mortgages are common in California
- Loan Term: 1 month to 5 years
- Most private money lenders max out at 24 months
- Most lenders have a 3-month minimum term (interest guarantee)
- Payment Type: Interest-only
- Few private lenders in California amortize all of their loans
Funded Private Money Loans in Orange County
Private Money Refinance Loan for SFR Rental in San Clemente, California
$2,550,000
Karpe Real Estate Center  funded a $2,550,000 1st lien position private money loan secured by a single-family home in San Clemente, Orange County, CA. The property value was estimated at $3,640,000 so our loan-to-value was 70%. We paid off a previous loan balance of $2,550,000. The Borrower was in need of a bridge refinance of an existing mortgage due to the maturity of the loan. The deal was approved the same day as submission, and the funding/close took place approximately 10 days after. The subject property was in good condition and was tenant-occupied at closing. It was approximately 4,409 square feet set in a 10,000-square-foot lot. The Borrower had good credit. They plan to sell the property as quickly as possible and move on to the next project. The interest rate was 10.50%. The loan term was set at 12 months. This private money loan was funded in May 2023.
2nd Mortgage Private Money Cash-Out Loan for Orange County Luxury SFR Construction Completion in Dana Point, California
$500,000
The Brookline Group, a direct private money lender, provided a $500,000 2nd mortgage private money cash-out loan secured by a single-family residence in Dana Point, Orange County, CA. The property is a 7,200-square-foot home that was under construction. The project was 3 weeks away from completion, and the developer needed some additional funds for the finishing touches. The balance of the 1st mortgage was $4,544,000. Brookline provided the cash-out loan in a very short period of time, and we did not require an appraisal. We estimated the home to be worth around $10,000,000 upon completion, so the combined loan-to-value was around 50%. The property is steps away from the Pacific Ocean in a very upscale neighborhood surrounded by luxury homes. This SFR private money cash-out loan was funded in May 2020.
Private Money 2nd Mortgage Loan for Multifamily Property in Huntington Beach, California
$512,000
The Scenario
The Borrower was seeking a business purpose 2nd TD on a multifamily property in Huntington Beach, Orange County, CA. They were restructuring the 1st TD at a low rate with a commercial bank and paying off an existing 2nd TD where the Note was coming due. The subject property was a well-maintained 12-unit multifamily property sitting 2 blocks from the beach. The unit mix featured 1 – 4BR/3BA unit, 6 – 2BR/1BA units, and 5 – 1BR/1BA units for a grand total of 45 total rooms, 21 bedrooms, and 14 baths.
The Loan
The appraised value was $5.2M, 2nd TD Loan Amount of $512,000, and the combined LTV was 59.85%. The interest rate was 10.50%, interest-only, 5-year loan term, 6 months Guaranteed Interest, and months prepaid interest. MORTGAGE VINTAGE VALUE-ADD: Due to LTV constraints the commercial bank couldn’t pay off the full combined balance of the 1st & 2nd mortgages. We quickly stepped in and paid off the remaining balance while adhering to the strict underwriting guidelines of the commercial lender holding the 1st trust deed. This private money loan was funded in June 2019.
SDC Capital, a direct private lender based in Burbank, funded a $570,000 1st lien position private money loan for Brea House in Brea, Orange Country, CA. At SDC, we strive to create mutually beneficial relationships with our Borrowers and this deal was a perfect example of the benefits of such relationships. Last month, one of our repeat Borrowers came to us to finance the purchase of a single-family residence in Brea which required a fast closing and nearly 100% leverage. On the surface, that looks like an easy pass, but in knowing this borrower well it was actually quite the opposite. In a previous deal, we had cross-collateralized his primary residence to achieve our desired LTV. The Borrower hoped he could again tap the equity in his home as his liquidity was tied up in other deals. With an accepted offer on a property he couldn’t pass up, we were the first call he made and the only one he needed. SDC Capital was able to provide the loan with a 90% LTV, a 12-month term, and an 8.99% interest rate. This SFR private money loan was funded in October 2016.Â