Herzer Financial

California Hard Money Lender with Soft Money Terms

Ground-Up Construction | Rehab Fix & Flip | Rental Bridge Loans

We specialize in construction and rehab loans, but we also offer commercial loans, bridge loans and various consumer purchase loans. Whatever you need, we’re here to get your loan funded, fast. Our company was established in 1950, and we invite you to join our ever-increasing list of satisfied borrowers who’ve made us the go-to choice for loans in the San Francisco Bay Area, Sacramento, Los Angeles, San Diego and other parts of California.

Property Geographic Area Details

Non-rural areas throughout Northern California

Loan Amounts

$100,000 to $3,000,000

Interest Rates

7.99% to 10.99%

Loan Terms

6 months to 60 months

Origination Fees

1.5% to 4%

Lien Position

1st, 2nd

Collateral Types

Residential Property
Commercial Property

Loan Purpose

Investment Acquisition
Investment Refinance
Improve Subject Property
Use Equity to Invest in Another Property
Invest in a Business
Business Working Capital
Value Add Project
Development Project
Primary Residence Purchase
Personal Use

Property Occupancy

Vacant
Tenant Occupied 100%
Owner Occupied Commercial
Owner Occupied Residential

Property Types

2-4 Units Residential
Adult Day Care
Assisted Living Facility
Auto Dealership
Auto Repair
Bed and Breakfast
Commercial Condominium
Condominium
Cooperative
Healthcare
Manufactured Home
Mixed-Use
Mobile Home Park
Multifamily
Office
Parking Lot
Rehabilitation Facility
Retail
Senior Housing
Single Family Residence
Storage Facility
Student Housing
Vehicle Parking

Loan Types

Residential Ground-Up Construction
Commercial Ground-Up Construction

Specialty Loan Types

2nd Mortgage Equity Cash Out
Condo Conversion
Discounted Note Payoff
Land Development
Note Purchase
Partner Buyout
Primary Residence Bridge
Primary Residence Business Purpose Cash Out
Residential Long-Term Rental
Residential Non-Prime
Reverse 1031 Exchange
Subdivisions
Transactional Funding

Junior Lien Loan Amounts

$100,000 to $3,000,000

Junior Lien Interest Rates

9% to 12%

Junior Lien Loan-to-Value

65%

Junior Lien Loan-to-Cost

70%

Junior Lien Origination Fees

2% to 5%

We Fund Junior Position Loans

Rarely

Junior Lien Types

Purchase
Refinance
Equity Cash Out

No less than 25% of the First Loan amount.

Will allow junior liens, but must have at least 10% skin in the game.

Max Loan-to-Purchase Price

65%

Borrower Must Have Property Under Contract

yes

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

Allowed Source of Borrower’s Equity

Own Cash
Partner
Equity in Subject Property
Equity in Another Investment Property
Equity in Primary Residence
Seller Financing
Gap Lender
Crowdfunding
Family

Lien releases required. We only fund the vertical construction and will not fund a land purchase. The land must be owned and entitled.

Development Experience Required

yes

Minimum Number of Ground-Up Construction Projects Completed by Borrower

Max LTC for Ground-Up Construction Costs

70%

Interest Charged for Construction Costs

Only on Funds Drawn

Will Lend on Partially Completed Construction Projects

yes

Minimum Loan Amount

$100,000

Maximum Loan Amount

$3,000,000

Minimum Interest Rate

8.95%

Maximum Interest Rate

12%

Minimum Origination Fee

2.5%

Maximum Origination Fee

Minimum Loan Term

60 months

Maximum Loan Term

60 months

Maximum Loan-To-Value

65%

Maximum Loan-To-Purchase

65%

Minimum Debt Service Coverage Ratio

1.10

Maximum Debt-to-Income Ratio

42%

Will Lend on a Portfolio of Properties

Yes

Minimum Number of Properties

Maximum Number of Properties

Minimum Property Value

$250,000

Maximum Property Value

$10,000,000

Documents Fee

$695 Doc fee and $225 Assignment Fee

Inspection Fee

Inspection fees for construction loans vary depending on scope of work.

Escrow Fee

normal escrow fees apply

Title Fee

normal title fees apply

Extension Fee

We generally charge an extension fee upon maturity

Appraisal Fee

normal appraisal fees apply

Environmental Report Fee

Phase 1 reports required for most commercial loans

Minimum Origination Fee Amount

$2,500

Fees which are mandatory for all new borrower clients

Documents Fee
Appraisal Fee
Renovation or Construction Funds Draw Fee

Fees which are paid to a third party company

Appraisal Fee
Escrow Fee
Title Fee
Environmental Report Fee
Renovation or Construction Funds Draw Fee

Details and Requirements

Typical Closing Time (Days)

Fastest Closing Time (Days)

Payment Structure

Amortized

Payment Structure Details

30-year amortization

Pre Payment Penalty

Will lend to a foreign national

yes

Must have TIN or SSN

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

Borrower Entity Types Considered

Individual(s)
LLC
Limited Partnership
Trust
Corporation
Non-Profit Corporation
Self-Directed IRA

Documentation Required

Credit Report
Financial Statements
Loan Application

Personal Guaranty (Recourse) Required

Sometimes
We generally make recourse loans.

Credit Check Required

yes

Minimum Credit Score Required

550

Credit Check Description

The lower the credit score the lower the LTV.

Appraisal Required for Residential Property

Always

Appraisal Required for Commercial Property

Always

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Sometimes

Legal Disclaimer

These parameters do not constitute a commitment to lend. These are guidelines only.

Additional Details

Sometimes we disburse construction funds in-house and charge fees. Loans are made or arranged pursuant to a California Finance Lender's License #6054500.

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Herzer Financial Services, Inc. (HFS) offers private real estate loans for consumers and real estate investors located in California. We make ground-up construction loans, fix and flips, bridge loans, consumer loans, commercial, refinance, and purchase money loans. A significant percentage of real estate loans—such as fix and flips—rely on private money funding, as banks consider them unnecessarily risky. That’s where we come in. Typically, Herzer Financial Services, Inc. provides loans up to $3M and up to five-year terms.

Ensuring that each customer receives quick and reliable service is an integral part of the Herzer Financial Services, Inc. mission. That’s why the majority of our borrowers come to us from loan broker referrals and word of mouth. In fact, some of our borrowers have worked with us for over a decade.

Herzer Financial Services, Inc. is licensed by the California Bureau of Real Estate (BRE) and the Department of Business Oversight (DBO), and holds an NMLS credential from the Federal Government. We submit annual reports to all three regulators, and quarterly reports—tested by our accountant—to the BRE. We have excellent references, and are happy to provide them upon request.

We are headquartered in Redwood City in the San Francisco Bay area and remain an active member of the California Mortgage Association, an organization dedicated to promoting education and excellence in the private lending .

History
Herzer Financial Services, Inc. has provided borrowers unsurpassed service in the private money real estate lending field since its founding in 1950 by Fred Herzer, Jr. Over time, we’ve earned a reputation for helping borrowers leverage their real estate holdings with creative, efficient and flexible loan programs. Herzer Financial Services, Inc. has been owned and operated by David Herzer since 1995.

License

CA DRE Lic. 00417082, CFL License 6054500, NMLS ID 314253

Company Size (Number of Employees)

Year Established

1950

Associations

California Mortgage Association - Member

Office Locations

Herzer Financial Services, Inc.,
1779 Woodisde Road 201A, Redwood City, California 94062

Primary Capital Source

Own Funds
Individual Investors
Bank Credit Line
Private Equity Funds

Loan Structure for Majority of Loans

One Investor One Loan
Multiple Investor Fractionalized Note
LLC Syndicated Investors

Percentage of Loans Secured by Commercial Property

10%

Percentage of Loans Secured by Residential Property

80%

Total Number of Loans Funded to Date

9,500

Total Loan Volume Funded to Date

$3,200,000,000

Our Team

David Herzer

President

CA DRE Broker Lic. - 00870373
MLO License - 317968

Bill Lercari

Loan Officer

CA DRE Lic. - 00797583

Contact Herzer Financial

Herzer Financial pays us to be listed, so there is no fee to connect with them directly.

Send email Create a Loan Request

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