Bridge Loans in Los Angeles
A bridge loan is a short-term financing solution that helps bridge the gap between two financial transactions, whether in commercial or residential real estate. It provides temporary funding until the borrower secures long-term financing or sells their property. While bridge loans often come with higher interest rates, they are designed to be used for a short duration.
- Direct lender, not a broker
- Pre-approvals usually within 24 hours
- Funding in as fast as 7 to 9 days
- Loan amounts up to $20 million
- Corporations, LLCs and Foreign Nationals OK
Hard Money Loan Request
Many borrowers come to us when they’ve found a property to buy but won’t have enough funds until they sell their current property. Often, their sale is already in escrow, but if they’re worried the timing won’t align with the new purchase, they choose a bridge loan to avoid losing the opportunity.
What is a Bridge Loan?
A bridge loan is a short-term loan, lasting from two weeks to 12 months, often called a swing loan. It provides temporary financing until permanent funding is secured or an existing property is sold. While bridge loans come with higher interest rates, they are backed by real estate and provide flexibility for those navigating the gap between buying and selling. Key aspects of bridge loans include:
- Collateral: Any property with strong equity can be used
- Term: Typically 3 to 12 months
- Interest Rate: Usually between 9% and 10.5%
- Prepayment Penalties: Vary based on the deal
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LENDING AREAS |
Almost anywhere in California |
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CLOSING TIME |
Typically 7 to 9 days |
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LOAN SIZE |
$50,000 to $20,000,000 |
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LOAN TERM |
3 to 24 months |
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INTEREST RATES |
8.5% to 10.5% |
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ORIGINATION FEES |
1 to 4 points based on many factors. Call for a quote. |
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AMORTIZATION |
Interest-only payments |
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LIEN POSITION |
First Trust Deeds Only For Bridge Loans |
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PRIVATE MONEY BRIDGE LOANS in California
At California Hard Money Direct, we handle our own underwriting, so you’re working directly with the lender—no middleman involved. This allows us to provide quick responses and fast closings. Whether you’re purchasing, refinancing, or working on a fix-and-flip, we can help. As a direct private lender, we offer bridge loans for both commercial and residential properties in Los Angeles and all of California, with loan amounts ranging from $50,000 to $20 million.
Top Reasons to Get a Bridge Loan in Los Angeles
Fast Financing: Bridge loans provide quick access to funds, allowing businesses to secure and renovate properties before obtaining permanent financing. They also help take advantage of time-sensitive investment opportunities that conventional loans may not accommodate.
Auction Purchases: With bridge loans, you can have cash in hand for private or courthouse auctions, where quick deposits and payments are required. This flexibility lets you secure the property while waiting for approval on a conventional loan.
Cover Unexpected Bills: When surprise expenses like tax bills or other urgent costs arise, a bridge loan offers a fast solution, helping you avoid penalties or financial strain.
Working Capital: Cash flow can fluctuate, and when businesses need short-term funds for operational needs like inventory, payroll, or equipment, bridge loans keep things running smoothly until finances stabilize.
Buy Before Selling: One of the most common uses for bridge loans is purchasing a new property while waiting for the sale of an existing one. You can secure the property now and repay the loan once the sale is finalized.
Rehab Properties: Traditional lenders often shy away from properties needing significant repairs or with high vacancy rates. Bridge loans offer flexibility for buyers looking to rehab or invest in such properties, regardless of their current condition.
Credit Score Not a Factor: As an asset-based lender, California Hard Money Direct focuses on the value of the real estate, not your credit score or debt-to-income ratio. We lend based on commercial, multi-family, investment, or mixed-use properties.
Buy Vacant Rental Properties: If you’re looking to purchase a vacant rental property, conventional lenders may decline due to vacancies. With a bridge loan, this isn’t an issue, allowing you to move forward with your investment.
Read What Other Borrowers Have to Say About Working With Our Bridge Loan Lenders
Laurence Stewart
There are times when a “hard money loan” makes sense. When it does, the last thing you want to do is chase your tail with an unscrupulous vendor that will charge too much and may not be able to close the loan. I needed to pull equity out of a condo for a couple of rehab projects I have going and I’m very happy with my results from California Hard Money Direct. I would absolutely use them again.
Thomas Zacharia
Thank you Judy for acquiring funding for our Purchase of a luxury condo. Judy was able to get me a $1.785 million loan, 65% LTV, with very little docs as it was an SFR investment property. This was a celebrity client with many demands. I would highly recommend Judy to anyone needing a loan fast and with the utmost professionalism.
Liz Carnes
After spending 8 months in an effort to get reasonably priced financing I lucked upon Judy at California Hard Money Direct. Judy connected me with the right people at the perfect time, all at what I would consider “bargain” hard money pricing for both the origination fees and the loan interest rate. Judy is responsive, straight and direct in her approach, easy to reach, and overall a pleasure to deal with. Judy, thanks for making it happen!
