$50,000 to $5,000,000
30 years
7.25% - 12%
1 - 2%
Loan Type Private Money
Property Type 2-4 Units, Multi Family, SFR
California Private Money Lenders
Below is a list of 4 Lenders that offer private money in California. Interest Rates vary on a case-by-case basis but are typically offered from 7.25% to 12%. In addition, these lenders provide loans amounts from $50,000 and $10,000,000.
$800,000 to $6,000,000
2 years
10.25% - 12%
Loan Type Bridge Loan, Construction Loan, Hard Money Loan, Private Money
Property Type 2-4 Units, Mixed use, Multi Family, SFR
$500,000 to $2,500,000
1 year
12%
2.5
Loan Type Bridge Loan, Private Money
Property Type 2-4 Units, Automotive, Cannabis Related, Industrial, Land Entitled, Mixed use, Multi Family, Office, Retail, Self-Storage
$250,000 to $10,000,000
3 years
10% - 11%
1.5 - 2%
Loan Type Bridge Loan, Construction Loan, DSCR Loan, Private Money, Rehab Loan
Property Type 2-4 Units, Assisted Living, Hospitality, Industrial, Medical Offices, Mixed use, Multi Family, Retail, Self-Storage, Senior, SFR, Strip Centers
The Top 5 Pros and Cons of Working with Private Money Lenders in California
Pros of Private Money Lenders in California:
1. Working with private money lenders in California allows you to gain quick access to funds since the process does not involve obtaining approval from traditional lenders, and is a solid route to consider when getting financing for your investment property. Private money lenders are there to get you in and out. As long as you are responsive and cooperative, you can typically get a private loan much faster than a bank loan.
2. When you work with a private lender, you often need fewer qualifications in comparison to traditional lenders. Private money lenders in California often accept borrowers with lower credit, weaker financial history, and are able to work through issues that traditional lenders or banks might not be able to.
3. Higher loan amounts may be available than would be available through a traditional lender.
4. Private money lenders often provide a more personalized service than what is available from larger banks and financial institutions.
5. Flexible repayment terms and options available to you.
Cons of Private Money Lenders in California:
1. Interest rates can vary widely from one lender to another and can be unpredictable if not properly researched ahead of time, leading to higher overall costs for the borrower if they are not careful about the terms of the loan agreement they sign up for.
2. Higher due diligence requirements and paperwork can create delays in getting approved or receiving the funds from a private money lender compared to a bank loan since there is less standardization when it comes to documentation and underwriting procedures.
3. There are typically fewer consumer protection laws that apply to private money lending compared to traditional banking leaving borrowers vulnerable if they have an issue with their lender or loan that cannot be resolved amicably on their own without going through legal means or through credit reporting agencies (credit bureaus).
4. Private money loans are typically short-term agreements which means that borrowers need to refinance or find alternative sources of funds after their initial term ends.
5. There may be additional fees associated with obtaining a loan that can add to the overall cost of borrowing money.
Are you a lender who wants a free or premium listing on LendDing? Get started today!
Or Contact Us if you have a loan inquiry or question.