How to Use Private Money in California to Effectively Win Real Estate Bidding Wars

Private money lending in California focuses more importance on the equity in a property, as opposed to conventional lenders that fixate on various other factors that can dangerously slow down the process, which can cause you to lose in a real estate bidding war.

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California Private Money Loans

Anybody actively pursuing the purchase of real estate in California knows there is a great deal of competition between buyers. San Francisco saw the second-highest share of homes sell above list price in December 2018. According to Zillow, despite a slowdown during the back half of the year, the annual share of homes sold above list price still trended upward for the fourth consecutive year, Nationally, 23.5 percent of homes sold above list price in 2018 compared to 22.7 percent in 2017.


The bottom line is if you find a property with the potential to fix and flip, chances are, other investors are also interested in the very same property. Potentially profitable homes are not just sitting around, and cash is always going to be king; the cash buyer will almost always win. But second to cash, is hard money. It’s considered as close to cash as anything could ever be. If your hard money offer has fewer contingencies than the cash offer, you very well might get the property under contract.


Private money lending operations give greater importance to the equity in the property. Conventional lenders focus on so many other factors that it slows the lending process down dramatically. As a result, the underwriting and funding process can be completed in a matter of days rather than weeks or worse yet, months. Private money lenders mostly provide shorter-term interest-only bridge loans. This type of loan allows the borrower to secure the property quickly while providing them ample time to apply and qualify for a longer-term financing option.


In advance of even locating a property, your private money lender can write you a preapproval letter. This will allow you an additional tool in convincing the seller you are qualified. Oftentimes, merely allowing the seller to see you’ve already been preapproved by a private money lender can actually help you get your offer accepted over another buyer who has not already lined up their financing.

The entire process will move much quicker if you work with a direct lender. To narrow down the best private money lending institution, always ask if they are a broker or a direct lender. If you are working with a broker, you may find yourself in a situation where the broker can’t find investors in time to meet your escrow deadline. Working directly with the funding source will help you avoid that risk.


Seeking quick funding to win a real estate bidding war? Consider using private money lending

Read what other borrowers have to say about working with our California private money lenders

Lending throughout California, a reliable private money lender

Ron Scott

Judy, was fantastic in getting my loan closed! I had a difficult situation with a number of extenuating circumstances, but she never gave up and persevered. And on top of everything else, we had to deal with COVID-19! If you have an easy situation she’ll get your loan closed in no time at all. But if you have a difficult situation, she’s the one to turn to!

Francis Ezewiro

I sincerely enjoy the high level of commitment and passion Judy brings to the table during the loan process. From the first day we spoke on the phone through the day the loan was financed, Judy was with me. She responded to any questions I had thoroughly and promptly. If need arises, I would use Judy again. Also, I would highly recommend Judy to anyone that seriously needs funding for investments and flips.

Paul Moresi

Judy is the type of person who follows through and moves FAST. She was also very sweet and a pleasure to work with. I would recommend California Hard Money Direct for anyone in need a quick loan to finish a project. They were a great resource for me.

Frequently Asked Questions About California Private Money Lending

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