California Private Money Lenders for Real Estate Investors
Here is a list of private money lenders for real estate in California. Use a private mortgage to get fast funding for a California investment property purchase, refinance or equity cash out. Our directory lists private money companies (not individual investors) offering short-term loans that typically range from 6 to 36 months.
The Brookline Group, a direct private money lender, funded a $470,000 1st mortgage for the purchase of a residential vacant lot in Palos Verdes Estates, California. The purchase price was $940,000. The Borrower brought 50% cash to the closing, and Brookline funded 50% loan-to-value. The property is a rare find in a very affluent area. The lot is surrounded by luxury homes, mostly on hillsides with beautiful views. Brookline's principal, Mike Klemens, did a site visit and moved quickly to fund the loan before Christmas. The Borrower plans to build a spec home. They needed a private money loan just to acquire the lot and plan to pay it off once they have secured a construction loan within two years. Although they qualified for a bank loan, a prepayment penalty would've been charged if paid off within two years. Brookline offered better terms than the bank, and no prepay charge which was a Borrower hot button. Also, Brookline does not charge any garbage fees. This private mortgage was funded in December 2020.
Private Money Loan for Multifamily Acquisition in Hawthorne, CA
Archway Fund, a direct private lender based in LA, provided a $1,350,000 non-recourse private loan for the purchase of two adjacent multifamily properties in Hawthorne, California. The borrowers needed quick financing to close on this property during the COVID-19 pandemic shutdown. The purchase price was around $2,000,000. Archway's 1st mortgage is 63% LTC (loan-to-cost). The borrowers put down a significant amount in cash. They plan to execute a tenant buyout of the 8 units and then renovate the property to increase the value. Once the renovation is completed and new tenants are moved in, the loan can be refinanced with long-term permanent financing. The loan term was 12 months. Interest rate was 8.25% Interest Only fixed. This private mortgage was funded in May 2020.
Private Money Loan for Rental Home Purchase in Pleasanton, CA
First Bridge Lending, a direct private lender in Petaluma, funded a private money loan for the purchase of a single family investment property in Pleasanton, California. The borrowers are a married couple in the food industry seeking their first investment property. They located a 2,260 square foot house, with 4 bedrooms and 3 baths, in the Val Vista neighborhood that they felt would make a good rental. They need a short-term bridge loan just to quickly acquire the property. The sale price was $1,210,000. The borrowers put down 40% of the purchase price in cash. First Bridge funded the remaining 60%, a total loan amount of $726,000. The borrowers plan to rent the home for around $4,800/month and refinance with a conventional lender within a few months. Our loan term is 6 months. This private money loan was funded in March 2020.
Private Money Cash Out Loan for Triplex in Palo Alto
Stonecrest Financial, a direct private mortgage fund based in San Jose, provided a $100,000 equity cash out loan secured by an investment property in Palo Alto, California. The Borrowers inherited a 3-unit property over 30 years ago from their father and had not paid the property taxes in years because they live outside of California, and the tax bill never found its way to them. When they were finally made aware of the delinquency, they had under a week to bring the taxes current or face losing the property to a tax sale. The County refused to extend the sale date which meant Stonecrest had to perfect the title and get loan docs signed and returned from out of state all in under a week. The estimated value was $2,400,000 and there was no mortgage on the property, so our loan was only 5% LTV. The loan term was 18 months. This private money loan was funded in October 2019.
Private Money Loan for Venice Multifamily Property Purchase
SDC Capital, a direct private lender based in Burbank, funded a private money loan for the purchase of a 6-unit multifamily property in Venice, California. A mortgage broker came to us looking for a quick closing for his client who needed to close very fast. The buyer was beyond his closing date, and the seller was getting impatient. We immediately inspected the property, completed our due diligence and provided the borrower with a loan commitment. Given our ability to underwrite the property value ourselves, no appraisal was required. As a result, we were able to close the loan quickly at a loan-to-value of 70%. Our interest rate was 7.49% plus an origination fee of 1 points. This private money loan was funded in October 2019.
8.50% Private Money Refinance Loan for SFR in La Verne, California
THE SCENARIO: Real estate investor with a 590 credit score was seeking a cash-out refinance on a non-owner occupied house in La Verne, Los Angeles County. Our new Mortgage Vintage loan paid off an existing 1st mortgage and also provided cash-out to make repairs to the same property as well as pay off other debts. The subject property is a 912 square foot traditional style SFR with 3 bedrooms, 1 bath - very typical for the neighborhood. A unique feature of the property was that it sat on a large 6,850 sqft lot. As well, the property also had an unpermitted room addition. The addition was not factored into the overall value of the property. Tenant pays $2,300 per month. THE LOAN: Broker Price Opinion (BPO) was $470,000, and our loan amount was $300,000. The loan-to-value was 63.83%, and the interest rate was 8.50% with 6 months guaranteed interest and 3 month prepaid Interest. MORTGAGE VINTAGE VALUE-ADD: The un-permitted room addition was an obstacle that we have seen on many occasions. We were able to quickly assess the climate to lend on this unique property and close the loan in 7 business days.
Private Money Line of Credit for 2 Mountain View Commercial Properties
The borrower is a past client for Stonecrest. They own a successful motorcycle dealership and building, as well as another location in Mountain View. They were in need of some funds for inventory management purposes. We provided a $900,000 line of credit in 2nd position behind a $1.2MM 1st mortgage. The property was valued at $5.3MM, so the combined loan-to-value was around 40%. The building is approximately 11,200 sq ft and sits on a .71 acre lot. The commercial service zoning allows both commercial and industrial uses. California BMW occupies this commercial building. We funded this private money loan in December 2017.
Private Money Loan for Contra Costa County Industrial Property
In March 2016, Rubicon Mortgage Fund provided a $300,000 private money loan secured by an industrial property in Pittsburg, Contra Costa County, CA. The Borrower has been a tenant, operating an automotive repair business at the property for several years. They had a lease option which they decided to exercise and needed additional funds to close.The purchase price was $1,500,000. Our 1st position loan was just 20% LTC (loan-to-cost). The seller carried back a 2nd position behind us, and there is still plenty of equity in the deal. The Borrower is already working on a SBA loan refinance our loan in the near future. We funded this 1st trust deed private mortgage in just 14 days.