SF Bay Area Private Money Lenders for Real Estate Investors

Our Borrower has had a long-time business relationship with Rubicon Mortgage Fund, LLC and wanted to make an offer on a 1,926 square foot residential investment property. In order to compete against all cash offers, she submitted an offer with a 12-day close, with the option to fund the purchase with private money at no cost or delay to the Seller, as well as a purchase price over $50,000 over the listing price. She used a loan from Rubicon Mortgage Fund to backfill the cost of the home as she did not want to use all her cash. Rubicon secured a $442,200 1st Deed of Trust, 1-year term loan, on the purchase price of $737,000, 60% Loan to Cost as requested by the Borrower. She started the loan process 10 calendar days prior to the scheduled close of escrow and with Rubicon’s internal underwriting and efficient back-office, the loan closed on time, in early August 2020.

Private Mortgage Fund, LLC provided a fast private money refinance loan secured by a residential investment property in Tiburon, Marin County, California. The Borrowers had the home on the market for sale, but the note was coming due, and they had less than one week to pay it off. We did an in-house valuation and found the LTV was less than 60%. We got this loan funded in just 3 days, with no appraisal required. Although the home is on the market for sale, we set the loan term at 2 years, and there is no pre-payment penalty. The subject property is over 8,000 square feet, and features 5 bedrooms, a tennis court, infinity pool, a four car garage, guest quarters, and much more. We funded this private mortgage in September 2019.

First Bridge Lending, a direct private lender in the North Bay Area, funded a private money loan secured by a waterfront residential lot in Belvedere, CA. The borrower is an experienced developer who has completed major renovations on 4 Marin County homes in the last 24 months. They purchased this 1.23-acre parcel in a premium neighborhood with views of the Golden Gate Bridge. They had already secured permits and entitlements for a 12,500 square foot home with a boat dock and waterfront casita. They needed to pay off a matured loan that was in place for a short period of time before obtaining construction financing. We determined the value to be around $5,260,000 so the LTV for our 1st mortgage is just 38%. First Bridge does not typically consider land loans. However, due to the low loan-to-value and borrower's track record, we were able to make an exception. We expect to be refinanced within 12 months. This private money loan was funded in August 2019.

Stonecrest Financial provide a private money line of credit secured by the primary residence of a business owner in San Francisco, CA. This relatively new company has been killing it for a couple years now but came upon a challenging time due to a big flood in their newly leased second location about a year ago causing them to be financially handcuffed. They took out an emergency business loan that turned out to be over 50% annual interest due to the complicated way it was arranged. We rescued them with a new $2,100,000 loan which paid off the previous lender and provided a flexible credit line, enabling them to reduce their mortgage payments by over $40,000 per month and provide the capital needed to continue with their business expansion plans. The subject property is a single family residence in Pacific Heights, owned and occupied by one of the business partners. The appraised value was $4,700,000 so the loan-to-value for our 1st mortgage was just 44% LTV. We don't typically consider an owner-occupied home for our loans, but the exception is when the funds are to be used for a business purpose. This private money loan was funded in September 2019.

First Bridge Lending, a direct private lender in the North Bay Area, funded a private money loan for the purchase of a single family investment property in Palo Alto, CA. The borrower is an experienced house flipper who was trying to obtain bank funding for this deal, but it was taking too long. The seller was ready to take a back-up offer and keep the significant earnest money deposit. The borrower turned to First Bridge for help, and we were able to provide loan documents that were ready to sign that same day. We funded the loan in less than 48 hours, saving the deal and the borrower’s deposit. The sale price was $2,768,000. The borrower put down 28% of the purchase price in cash, so our 1st mortgage was 72% loan-to-value. This private money loan was funded in April 2019.

The borrower is an active real estate investor who wanted to take advantage of our Line of Credit product for other real estate projects. We provided him with a $820k credit line in 2nd position on his home in Palo Alto at a combined loan-to-value of 59%. This 1-story home has 3 bedrooms and 2 bathrooms. Built in 1959, it is 1,436 sqft and sits on a 7,345 sqft lot. The home has been completely remodeled. The property has refinished wood flooring throughout, granite kitchen counters and crown molding. Stonecrest funded this private money mortgage in January 2018.

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.

SDC Capital funded a $500,000 private money loan secured by a single family residence in Los Altos, Santa Clara County, California. The loan is in 2nd lien position. The owner needed the funds for a business purpose. After speaking with several lenders, the borrower selected SDC Capital based on our overall pricing structure and quick funding timeline. This private money loan was funded in February 2017.

Rubicon Mortgage Fund funded a $300,000 private money loan secured by a 10-unit mixed-use property in Port Costa, a small community west of Martinez in Contra Costa County, California. The Borrower is an experienced real estate investor who recently purchased the property with all cash. He decided to cash out equity soon after the purchase to use for making improvements to the property. We estimated the value at around $500,000 so the loan-to-value for this 1st trust deed mortgage was 60%. The Borrower plans to refinance to pay off this loan within the one year term. It was funded in May 2015.