Hard Money Lenders Los Angeles, CA

How are hard money loans in Los Angeles structured?

In a sea of competitors, Source Capital’s Los Angeles hard money lenders reign supreme with our unbeatable hard money loan terms. In addition to being fair and cost-effective, our Los Angeles hard money loans are structured very differently from conventional bank loans to meet your funding needs as an investor.

While the exact terms of your loan agreement will vary per property, you can expect the following structure for your Los Angeles hard money loan:

• Financing for as little as $100,000 or as much as $5,000,000
• Loans up to 65% LTV in first position, up to 50% CLTV in second position
• Origination fees starting at 2%
• Fixed interest rates starting at 8.99%—far lower than Los Angeles’ 10.4% average interest rate
• No minimum credit score or minimum income
• No “junk” fees
• No prepayment penalties
• Short-term agreements ranging from 1 to 2 years

At Source Capital, we understand the real estate business and the many variables involved to get a project off the ground. Whether you’re looking for hard money loans in Modesto or Riverside hard money loans, complex investments and financial transactions are the name of the game, and we are committed to making operations as painless as possible. Our hard money loan structure eliminates the fuss factor and puts you onto your pathway toward real estate success.

How can I get approved for a hard money loan in Los Angeles?

Interested in applying for a hard money loan? Source Capital’s hard money lenders in Los Angeles, CA make applying and approval easy work. Our online preapproval application only takes about 10 minutes to fill out and complete. To complete the application, you’ll need:

• Your first and last name
• A valid email address
• Your phone number
• The loan amount you’re requesting
• The purpose of the loan

After submission, one of our expert decision-makers evaluates your proposal and loan request. Within 24 hours of your submission we will get back to you, and upon approval, we will send a written offer detailing the terms of your loan payment plan.

Within 10 days of official deed issuance, we will wire the funds to your account—letting you close the deal on your desired property faster than any competitor lender.

Regardless of whether you have limited income, a low credit score, past foreclosures, or past bankruptcies, we can work with you. Since we are more interested in property equity, your former financial burdens are nonfactors. That means being approved for a hard money loan is as fast as it is simple.

What kind of properties can I get a loan for in Los Angeles?

Source Capital is the proud financier for a number of Los Angeles-based non-owner occupied business-related properties. These many properties traverse several residential and commercial property classifications, including:

Residential properties:

• Fix and flip properties: remodels, renovations, buy and holds
• Single-family, duplexes, triplexes, and quadruplex homes
• Apartments
• Condominiums

Commercial properties:

• Multi-family units: planned communities and complexes
• Office spaces: business, executive suites, medical offices
• Industrial zones: distribution centers, manufacturing factories, warehouses 

How much does a hard money loan cost in LA?

The average hard money loan in Los Angeles is $312,917. The exact price of your hard money loan largely depends on the lender you choose and the property you’re interested in purchasing. For novice and seasoned borrowers, Source Capital proudly offers competitive rates on all of our hard money loans in Los Angeles, so you can get the funding you need at a price that doesn’t break the bank or put your dreams on hold.

Hard money loan interest rates start at 8.99%, and loan durations vary between 12 and 24 months. The cost of your loan is determined by several factors:

• Loan amount: The more money you borrow, the more interest you’ll pay each month.
• Interest rate: Higher interest rates also result in more monthly interest, increasing the lifetime cost of your loan.
• Loan duration: Shorter hard money loans mean less interest—assuming the same interest rate.
• Origination fee: This fee begins at 2% of your total loan amount, but it varies depending on loan amount and duration.

Your loan-to-value (LTV) also affects the total cost of your loan. LTV is your loan amount compared to the value of your property, and a lower LTV typically results in lower total loan costs.

Can I get a hard money loan in Los Angeles with low credit?

When you work with Source Capital, there are no minimum credit requirements to get approved for a hard money loan in Los Angeles. And, unlike many traditional lending institutions, we don’t impose any income threshold requirements either. Even if you have low credit, you can still chase your real estate business dreams.

So, what’s the catch? Rather than completing intrusive credit and background checks to assess your financial history, hard money lenders focus on your real property. Hard money loans are asset-based, meaning property, such as real estate, retirement accounts, home equity, or even cash, can be used as collateral in the event of default.

With the median home price in Los Angeles at an eye-popping $1,000,000, it’s absolutely crucial that any ambitious real estate entrepreneur find a lender who will approve you, even with a low credit score. Fear not, Source Capital’s team of private investors are here to help you get the financing without any of the stress or headache.

Types of Loan Programs

At Source Capital, we strive to make sure you can find a real estate loan that meets your needs. We offer several types of loans—whether you want to invest in commercial property or take advantage of the equity in a property you own. Learn more about some of the Los Angeles hard money loan programs we offer below.

Refinance

If you want to tap into the equity in a commercial or residential property, we’re here to help. If you qualify for a cash-out refinance, you can pay off your existing mortgage and get the cash you need for your next investment or project. We offer competitive rates and terms that are hard to find with other Los Angeles hard money lenders.

Investment purchase

California is home to some of the most desirable real estate in the country, making it a great market for investors. At Source Capital, we can help you secure the funding you need to purchase your next investment property before it’s too late. Fast approval and funding times give you access to your funds before other investors beat you to the punch.

Commercial property

Commercial property loans can be complex, but Source Capital makes them simple. We can help you find the right hard money loan for commercial, industrial, mixed-use, and multi-family properties. We’ll make sure your loan is tailored to your needs whether you’re investing in an office space, a storefront, or a multi-family property.

Probate and estate

If you’re going to inherit money from an estate, you can use our probate and estate loans to get access to tap into your inheritance early. We understand trusts and estates through years of experience. We can work with you to help you secure a loan even if you have a low credit score or other financial shortcomings.

How Our Loans Work

Applying for a Los Angeles hard money loan can help you secure the capital you need for your next investment, but weighing your options is a key first step. Let’s take a closer look at how Source Capital private loans work.

Unlike traditional loans, our private loans are based on the value of your property instead of your credit score and income. While you can secure a loan with a low credit score, there are other requirements you have to meet.

We offer Los Angeles private money loans with up to 65% loan to value (LTV) for your first mortgage. This means that the loan you’re taking out can’t exceed 65% of the value of the property you’re purchasing. For example, you can borrow $320,000 to purchase a $500,000 home, but $350,000 would be 70% LTV ratio.

For your second mortgage, we offer up to 50% combined loan to value (CLTV). CLTV is calculated by combining all the secured loans against a property and dividing them by the value of the property.

Popular Los Angeles Areas

Los Angeles is one of the largest and most beloved cities in the US. Whether you enjoy the hustle and bustle of the city or the peace and quiet of the beach, there are tons of great parts of Los Angeles to invest in.

Santa Monica

With an average home value of more than $1.6 million, Santa Monica is one of the hottest destinations in California. Beautiful beaches and a wide variety of shopping and dining make Santa Monica a popular destination for tourists and homeowners alike, and Source Capital can help you take advantage of the high demand with a Los Angeles hard money loan.

Downtown LA

For people who enjoy the excitement and energy of city living, there are few places in the world that beat Downtown LA. Being in the downtown area means you’ve got easy access to sports arenas, music venues, and some of the best-rated restaurants in the city.

Hollywood

Hollywood is known around the world as the heart of American cinema, and that reputation has made it one of the coolest spots in California. Hollywood is a great area for people who enjoy nightlife, and people come from all over the world to see the iconic sites. With a Los Angeles private loan, you can tap into the lucrative Hollywood real estate market.

Pasadena

Pasadena offers a unique blend of styles you won’t find anywhere else in LA. This area is home to several historic landmarks like the Pasadena Playhouse, but it’s also a lively area with a lot going on. For people who enjoy the convenience of city living and the charm of historic architecture, Pasadena is ideal.

Why choose Source Capital?

At Source Capital, we are dedicated to providing clients with the finances needed to transform their real estate ventures into profitable properties. We work with clients quickly and transparently to ensure their big-ticket projects are adequately subsidized. As one of the most reputable hard money lenders in Southern California, you can count on Source Capital to deliver the expert efficiency and financial security your project deserves.

Source Capital has no minimum credit scores, employment requirements, or financial minimums to qualify for a loan. If you’re seeking a flexible loan option or can’t qualify for a traditional loan, we can help. Apply now or give us a call to learn more about Los Angeles hard money loans.