THE MARKET
Hard Money Loan Market in California
The hard money loans market in California is among the largest in the nation. California represents the most active residential single-family real estate market in America. This is due to more than 15 million units of housing in the state. California real estate is also the most valuable market for real estate in the nation. The highest median prices of homes average at $500,000, which is around twice the national average.
The high value of California's single-family homes creates lucrative opportunities for house-flipping. This gives hard money borrowers the ability to get great deals.
We are a hard money lender in California. We provide commercial and residential hard money loans to borrowers who wouldn't qualify for a conventional bank loan.
TIPS
Hard Money Loans California - Tips
California Hard Money Loan Program
Loan Application Approval Timeline
Same day approval on your loan available
Loan Terms
6 to 36 months
Fees
No appraisal fees (in most situations) and no hidden junk fees
Time to Fund Loan
As few as 3-5 days if needed
THE BASICS
What are California Real Estate Hard Money Loans?
Hard money loans for real estate projects in California are asset-based, include short-term financing, and are secured by the borrower's non-owner-occupied property. These loans are also known as bridge loans. Rather than a credit union or traditional bank, they are generally funded by a private lender.
Hard money private lenders in California provide loans for business purposes to borrowers that use their non-owner-occupied property as collateral. Private lenders are capable of providing quick financing on properties with equity or current cash flow. Therefore, they often come with higher interest rates than conventional banks.
When assessing a borrower's qualifications for a hard money loan, private lenders use loan-to-value (LTV). This means they divide the loan amount by the property value.
The property comes first.
Questions on a specific deal? Call 415.793.3403.
WHERE AND WHAT
Where Kevin lends
All of California
With the heaviest concentration in the San Francisco Bay Area, Los Angeles County, Orange County, San Diego County, Sacramento County, Santa Barbara County, Ventura County and the Lake Tahoe basin.
Ten other states
Also Hawaii, Oregon, Washington, Colorado, Utah, Wyoming, Montana, Texas, Florida and New York. Other states case by case. Minimum loan size is $250,000 in California and $1,000,000 outside it.
Property types
Commercial, multifamily/apartment buildings, mixed use, SFR 1-4 units, condos/townhomes, office, industrial, retail, and medical buildings. Special use, land, and construction on a case by case basis.
Business purpose only. Investment, commercial and non-owner-occupied property.
FUNDED
All Funded California Properties
THE PROCESS
Fast and Easy Process for Hard Money Loans in California
Applying for a commercial hard money loan is pretty straightforward. Here is a sample process:
Contact: Call Kevin at 415-793-3403, or email kevin@privatefundsdirect.com to schedule an initial consultation.
Pre-Qualification: Before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, the lender gathers information about the borrower and property being used as collateral for the loan. The property itself is typically the single most important factor when determining whether or not to move forward in the loan process. Other factors, to a lesser degree, include borrower credit and financial stability.
Filling Out a Loan Application: This is where the application really starts. For some other types of loans, the application takes place a day or two after your pre-qualification. For commercial hard money loans, the application takes place on the same day.
Processing: Once the application is finished, your loan will begin processing. If it's required, your credit report will be ordered, and the appraisal on the property that will be used as collateral for the loan is completed. After collecting all requirements, the processor will then submit all the documents to the underwriter for review.
Underwriting: The underwriter assesses whether the risk of lending to you is acceptable. They will review all of the documentation collected by the processor and determine whether or not to approve your loan. Underwriters on hard money loans focus more on the collateral value than on your income or credit, making it easier to get approved.
Approval: Once approved, you will be provided with a commitment letter that tells you all the terms and conditions of your loan. It is important to review and go through this letter with your lender to make sure you understand everything. You will typically need to purchase insurance that covers damage, fire, and theft before the loan closes.
Closing: The final stage is where you will sign all the loan documents and pay any closing costs. After your lender signs all the documents, an escrow agent will hold onto the loan until everything is paid off.
The property is the single most important factor.
Questions on a specific deal? Call 415.793.3403.
WHY KEVIN
Why We're Your Best Choice for California Hard Money Loans
Kevin has been licensed in California real estate since 1998, serving areas across the state, including the Bay Area, San Francisco, San Jose, and Los Angeles. We provide a variety of hard money loan types, such as commercial and residential hard money loans and bridge loans.
We also use our many years of industry experience to educate those just breaking into the real estate business. Knowing the different loan types available to you can help you make the right choices to be successful.
Because more and more people are passing on home ownership in California and choosing to rent homes instead, the doors are opening for property investors to jump in and take advantage of the situation. Whether you are a mortgage broker, realtor, real estate investor, or similar, we can help you gain the capital you need for financing. While others wait weeks or even months to get approved for a traditional bank loan, we put you ahead of the markets with a fast and easy hard money loan.
One person reads the file and makes the call.
Licensed in California real estate since 1998. DRE #01241542 · NMLS #1130752.