SF Bay Area Hard Money Lenders for Real Estate Investors

Stonecrest Financial, a direct private mortgage fund based in San Jose, provided a $350,000 2nd mortgage secured by an owner-occupied residential property in Richmond, Contra Costa County, CA. Our client had owned a successful hardscape business for many years. The supply store that he purchases his materials from went up for sale. Excited to purchase the business, the client researched many financing options only to run into roadblock after roadblock despite his good income and credit, due to his citizenship status. Stonecrest funded a business purpose 2nd mortgage on his home which provided the funds required to complete the purchase, along with a line of credit for additional working capital. The combined loan-to-value was 58%, and the loan term is 12 months. Although we don't typically provide private mortgages secured by an owner-occupied home, we were able to make an exception because the funds will be used for a business/investment purpose. This private mortgage was funded in October 2019.

In June 2015, Rubicon Mortgage Fund financed a $590K hard money loan secured by a light industrial building in Richmond, just 5 miles north of Oakland, California. The Borrower operates an automotive business at the property. The previous bank loan was coming due and needed to be refinanced. Rubicon paid off the previous lender and quickly provided a new mortgage. We estimated the value of the property at around $1,000,000 so the loan-to-value for this loan is 59%. The Borrower plans to refinance out of this 1st trust deed mortgage through a traditional lender within a few years.

$125K hard money equity cash out loan secured by 100+ acres of raw land in Castro Valley, Alameda County. The Borrower owned the property free-and-clear and needed to cash out some funds for development costs. The appraised value of the property was $1.6M so the LTV is just 8%. Nationwide was able to fund this loan 3 weeks after receipt of the application, in September 2014. The interest rate was 9.99% and the loan term was 3 years.