California Bridge Lenders for Residential Investment Property

Cityscape Finance, a direct private lending firm, funded a $720,000 bridge loan secured by a single-family rental home in Carmel Valley, California. The subject property’s value was approximately $1,200,000. The Borrower put down 40% cash at closing, so the loan-to-value for our 1st trust deed was just 60%. We charged an interest rate of 9.99%, and the loan term was set at 12 months. The Borrower had an excellent credit rating. The 1,211-square-foot home was in good condition, and the Borrower plans to make it a vacation short-term rental and then refinance into a 30-year rental loan. This residential rental property bridge loan was funded in July 2022.

Cityscape Finance, a direct private lending firm, funded a $960,000 bridge loan for the purchase of a single-family residence in Yucca Valley, California. The purchase price was $1,200,000. Cityscape funded 80% of the purchase in 1st lien position, and the Borrower contributed a 20% cash down. The property, approximately 3,418 square feet, was in excellent condition and was owner-occupied at closing. The Borrower had good credit. They used their own funds for a rehab, and they could see great rental potential for the home. The Borrower plans to refinance into a rental loan within the 12-month loan term, after completing the rehab. The interest rate was 9.99%. Yucca Valley is a small town in San Bernardino County, near Joshua Tree. It has become a popular vacation spot in the past few years. This residential property bridge loan was funded in September 2022.

S&L Capital Group, a California-based lending firm, 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 guarantee 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 and 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. The 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.

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 SFR property bridge loan was funded in May 2021.

TaliMar Financial funded an $807,000 bridge loan in 1st lien position secured by a condominium in Encinitas, San Diego County, California. The loan was underwritten to 70% of the current value (purchase price) with a term of 36 months. We did not require an appraisal. We approved and funded the loan within 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’s 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’s 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. This bridge loan was funded in January 2021.

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 that 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.

SDC Capital, a direct private lender based in Burbank, funded a $365,750 1st lien position bridge loan for the acquisition 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.