California Bridge Lenders for Residential Real Estate
A list of lenders offering bridge loans for a California residential property purchase. Most private mortgage lenders only offer loans for investment or business purpose. Some will consider a primary residence bridge in which a homeowner uses equity in one home to buy another. Change the loan type to "Residential Owner-Occupied" for more options.
S&L Capital Group funded a $375,000 bridge loan for the purchase of an off-market duplex in the city of San Pedro, near Long Beach, CA. The Borrower is an experienced real estate investors with a sizable portfolio of properties. Not only were they juggling a 1031 exchange, but to get the property under contract, they had to write a strong offer with a 10-day closing window. We executed with No Appraisal, No prepayment penalty, and no interest guaranty all while providing surety in the closing. Meeting this closing timeline would not have been achievable without the support of Escrow, Title, Insurance, a responsive Seller, Buyer and a strong mobile notary. Here is the timeline.... File received on Tuesday 9/21. Underwriting completed, docs sent out to Escrow and capital allocated on Wednesday 9/22. Borrower signed loan docs on Friday 9/24. S&L walked the property to verify the condition on Tuesday 9/28. Loan funded on Wednesday 9/29. The loan-to-value was a very conservative 52.82%. This residential property bridge loan was funded in September 2021.
Bridge Loan for Beachfront Luxury Home in Huntington Beach, CA
Center Street Lending, a direct private lending firm based in Orange County, funded a $4MM bridge loan secured by a newly constructed single family residence in Huntington Beach, CA. The property is an oceanfront luxury home on Sunset Beach. This project was originally a ground-up construction loan which we funded at 80% loan-to-cost. Once the build was completed, we refinanced their construction loan internally to give the Borrower a lower rate until the property was sold. The estimated sale price is just under $8MM, so our bridge loan leverage is at sub 50% LTV. The loan includes an interest reserve. We were able to close both loans in less than 10 days with appraisals. This residential property bridge loan was funded in May 2021.
In January 2021, TaliMar Financial funded a $807,000 1st position bridge loan in secured by a condominium in Encinitas, San Diego County, California. The loan was underwritten to 70% of current value (purchase price) with a term of 36 months. We did not require an appraisal. We approved and funded the loan with 7 days with minimal borrower paperwork. The Borrower will refinance our bridge loan with conventional financing. They plan to hold the property as a rental for long term cash flow. The biggest hurdle in this transaction was the HOA was in litigation with an outside 3rd party. Because of the risk associated with the litigation, most lenders were unwilling to fund the purchase loan. After reviewing the borrower credit strength and with a large down payment, TaliMar Financial approved and closed the loan in 5 business days. The Borrower was referred to us by our mortgage broker community after the conventional lender was unable to get the loan approved. Because the mortgage broker and borrower weren't familiar with the hard money loan process, we worked closely with each party to ensure a smooth transaction. One of the biggest initiatives for TaliMar Financial in 2021 is educating real estate agents and mortgage brokers about the hard money lending approval process. Unlike conventional lenders, hard money lenders rely more heavily on the Borrower equity in the property vs their credit or cash flow. As long as the Borrower can demonstrate the ability to pay and have a clear path to repayment, hard money can be a great option to purchase or refinance a property.
Refinance for SFR Rehab Project in Los Altos, California
In August 2020, First Bridge Lending funded a $2,615,000 bridge loan secured by a large single family residence in Los Altos, Santa Clara County, California. The borrower is a full-time real estate broker and investor who flips 2-3 properties per year. This property is a 5-bedroom, 6-bathroom house which was originally purchased for $3,900,000. The borrower invested $600,000 in extensive renovations and added square footage. The house went on the market, but the previous loan came due. A bridge loan was needed just to pay off the previous lender and buy some time until the sale is completed. First Bridge's 1st mortgage is approximately 58% loan-to-value with a 12-month loan term. The property size is approximately 5,000 square feet, including a detached guest house.
Bridge Loan for Fourplex Property Purchase in Lynwood CA
SDC Capital, a direct private lender based in Burbank, funded a $365,750 bridge loan for the purchase of a 4-unit residential property in Lynwood, South Central LA, California. Just prior to the announcement of shelter-in-place orders during the Pandemic, the borrower was under contract to buy the property. We agreed to terms before the state went on lockdown. Everything changed and nobody knew what the next 30 days would look like. We worked diligently with the borrower and stayed committed to a loan that worked for all parties. The LTP (loan-to-purchase) was just 55% since the borrower brought 45% cash to the closing table. Our interest rate was 7.99% plus an origination fee of 1 point. This residential property bridge loan was funded in April 2020.
Bridge Loan for Contra Costa County Owner-Occupied Property
In March 2016, Rubicon Mortgage Fund funded a $1,971,000 bridge loan for the purchase of a large single family home in Lafayette, Contra Costa County, CA. The purchase price was $2,700,000 for the 5,500 square foot home in the Upper Valley neighborhood of Lafayette. The Borrower put down over $700,000 in cash, and the LTC (loan-to-cost) was 73%. The Borrower is an experienced Bay Area real estate investor. Rubicon has funded 5 other bridge loans for him. This transaction is quite different from the previous loans because he intends to use the subject property as his primary residence. With our 11-month bridge loan, the Borrower was able to make a non-contingent offer so he wouldn’t lose the home to another buyer. He did not have time to secure traditional financing. He plans to move in to the home and then refinance into a conventional home loan within 11 months.
Bridge Loan for San Mateo County Home REO Acquisition
In March 2015, Rubicon Mortgage Fund financed a $675,000 bridge loan for the purchase of a single family home on a 10-acre lot in La Honda, San Mateo County, CA. La Honda is a small town in the Santa Cruz Mountains, between Silicon Valley and the Pacific coast. The property was a REO as the result of a bank foreclosure. The Borrower had been watching out for properties in that area for over a year. When this home became available he wanted to act quickly to close the deal and Vance’s team was able to get it funded fast. The Borrower put up 40% cash for the purchase so the loan-to-cost for this 1st trust deed bridge loan is 60%. He plans to rent the home and refinance with a conventional loan within 2 years.