San Diego Hard Money Lenders for Real Estate Investors
Need a hard money loan secured by real estate in the San Diego metro area? This page has a list of direct hard money lenders that offer quick funding for a San Diego property purchase, refinance, fix & flip, rehab & rent, ground-up construction, and equity cash out in 1st lien position. Hard Money lending is only for investment properties, not for homesteads. The loans are mainly based on equity in the subject property. For most lenders, the maximum LTV is typically 70% for a purchase and 65% for an equity cash out loan.Searching...
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SDC Capital
Family Office Lender. No 3rd-party appraisal (typically). Soft Money Terms in 1st or 2nd Lien Position.
PrideCo Loans Inc.
Family Office Hard Money Lender for Multifamily and Residential Investment Properties
Select a Metro Area
California is a large state, and many hard money lenders 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:Â Central Valley |Â Bakersfield | Fresno
California Hard Money Interest Rates
According to the hard money loan documents software company, Lightning Docs, the average interest rate for California hard 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 properties in California between January 1, 2024 and March 31, 2024 by multiple hard money lenders 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 hard 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 hard 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 hard money lenders who use Liquid Logics’ loan origination software to manage their lending operations.
Top 10 California Hard Money Lenders
According to Forecasaâ„¢, here are the Top 10 Hard Money Lenders ranked by the number of 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 hard money lending on a quarterly basis. You’ll find their top lenders data for many other states on our platform.
California Hard Money Lending Guidelines
California has lots of hard money lenders that offer short-term loans secured by real estate. Here are the typical private money lending guidelines for most lenders in California as of March 2024:
- The interest rates for hard money loans in California range from 9% to 12%.
- For a 2nd mortgage in California, most hard money lenders charge 11% to 14%.
- Most California hard money lenders charge an origination fee (aka points) between 2% and 3%.
- The loan amounts range from $100,000 to $20,000,000.
- The maximum loan-to-value (LTV) for hard money 1st mortgages is 70%.
- The maximum combined loan-to-value (CLTV) for hard money 2nd or 3rd mortgages is 65%.
- 2nd mortgages are common in California, and some lenders even consider 3rd or 4th lien position.
- The loan term for most California hard money lenders is 1 year, but some lenders will go up to 5 years.
- Most lenders have a 6-month minimum term (interest guarantee). Some do not have a prepayment penalty.
- The payments for most hard money loans are interest-only, and the entire principal amount is due at the end of the loan term.
- A few hard money lenders in California amortize all of their loans over 20 years.
Hard money lending is mainly for investment properties, but California has some unique laws that enable hard money loans to be secured by a borrower’s primary residence.
Hard Money Loan Transactions for San Diego Real Estate
Fix & Hold Hard Money Loan for Student Housing in San Diego, California
$600,000
In March 2021, TaliMar Financial funded a $600,000 hard money loan for the purchase and rehab of a single-family home in San Diego, CA. The Borrower contacted us seeking a short-term loan with the intent to hold the property as a long-term rental for student housing. The renovation project included updating the interior and exterior of the home and converting the garage into additional bedrooms.
The Borrower put down 20% cash at closing. TaliMar funded 80% of the purchase price and 100% of the renovation costs. The renovation funds will be disbursed to the Borrower over five pre-determined draws.
Once the renovations are complete and the property is stabilized, the Borrower will refinance with a conventional mortgage.
Vacation Rental Hard Money Bridge Loan for SFR in Carlsbad, California
$865,000
In October 2020, TaliMar Financial funded an $865,000 1st TD Cash-Out Refinance Hard Money Bridge Loan secured on a single-family home in Carlsbad, CA. The loan term was 36 months with no minimum payments required.
The Borrower approached TaliMar Financial seeking hard money cash-out refinance on their vacation rental. The property has been used as a short term vacation rental for over 12 months and had strong cash flow. The Borrower was an experienced vacation operator and was looking to increase their number of units under management.
The biggest hurdle in this transaction was that the property had an existing 1st and 2nd TD that was a line of credit and which they wanted to keep. We contacted the 2nd TD lien holder and was able to get our bridge loan approved. Once approved, we closed within 5 business days.
Funding cash out vacation rental loans can be challenging without 6 to 12 months of historical cash flows and strong Borrower credit/cash flow. However, because TaliMar Financial is a hard money vacation rental lender, we are more focused on the Loan to Value (LTV) ratio than Borrower credit and property cash flow. In this instance, the Borrower had strong credit/cash flow and was able to demonstrate historical property cash flow, and therefore pricing and loan structure was more aggressive.
TaliMar Financial, a hard money lender, funded a $200,000 1st lien position equity cash-out loan secured by a manufactured home in Escondido, San Diego County, California. The Borrower needed to cash out equity on this property to finish the renovation and purchase another investment property. The Borrower was introduced to us by another real estate investor. The biggest hurdle in the transaction was the partially completed home had not received a certificate of occupancy. The valuation considered land that included the manufactured home, less the cost to complete. Funds were held back for future construction costs. Though the underwriting was more difficult than our traditional hard money loans, TaliMar was up to the task and found a solution for the property owner. The subject property was partially completed and is approximately 1,200 square feet. This hard money loan was funded in May 2019.
Hard Money Loan for Beachfront Property Portfolio in San Diego, California
$2,450,000
Wilshire Quinn Capital, a portfolio bridge lender, funded a $2,450,000 1st lien position hard money loan for the acquisition and rehab of two beachfront properties in Imperial Beach, San Diego County, CA. The Borrower is an experienced developer with a track record of adding value to properties. The properties are a triplex and an adjacent single-family residence. Each of the triplex’s three units consists of 2 bedrooms and 2 baths, with 860 square feet each. The house has 2 bedrooms and 2 baths, with a 2 car garage. Both properties have panoramic ocean views. The combined appraised value of both properties is $4,100,000 so loan-to-value is 60%. The Borrower plans to rehab and either rent or sell the properties to pay off this 1st trust deed bridge loan within the 12-month loan term. This hard money loan was funded in June 2015.