If you need funds for
Los Angeles Bridge Loans Lender
Fast Approval. Faster Funding.
Funded
Not a broker
Rating on Google
Loan Products
Multi-Family, Retail, Office, Industrial, Mixed-Use
- Up to $5,000,000
- Max 75% LTV
- Interest rate 9.25% - 11.00%
- Origination 1% - 2%
SFH, Condo, Apt Complex, Fix-n-Flip, Rentals
- Up to $3,500,000
- Up to 75% LTV
- Interest rate 8.75% - 10.50%
- Origination 1.25% - 2%
Acquisition, Expansion, Senior Living, Laundromats
- Up to $5,000,000
- Up to 70% LTV
- Interest rate 9.50% - 11.00%
- Origination 1% - 2%
Refinancing, Transitioning Homes, Distressed Property
- Up to $4,000,000
- Up to 75% LTV
- Interest rate 9.25% - 11.00%
- Origination 1.25% - 2%
Bridge Loan Lender in Los Angeles
Whether you are looking for a commercial real estate bridge loan in Los Angeles or just need to find a reliable private money lender to provide gap financing for your real estate investment deal. Crescent Lenders is a premier private money lender that funds deals across the Golden State.
We have been funding bridge loans in and around Los Angeles for over 10 years, and have funded more than $100 million in real estate projects to date.
We pride ourselves on having the best customer service in the industry. You can expect to speak with one of our team members immediately, and you can even receive same-day pre-approval.
Crescent Lenders is a direct, local Los Angeles bridge lender (not a broker). We manage our own funds, which allows us to finance your deal in 5 to 7 days.
Apply for a Los Angeles bridge loan today!
What are Bridge Loans?
Bridge loans are short-term loans that fill the gap in funding between an urgent need for capital and the moment when permanent financing, like a traditional bank loan, becomes accessible.
Common Real Estate Uses
- Purchasing a property before selling an existing property: A bridge loan provides financing for the down payment or purchase of a new property while the old property is being sold.
- Fix-and-flip: Real estate investors use bridge loans to efficiently purchase or remodel a property until long-term financing becomes available.
- Commercial: Investors often use bridge loans to purchase properties with low occupancy, and then, after they fill the vacancies with new tenants and increase cash flow, they turn to a bank to refinance with a long-term mortgage.
Important Features
- Short-term Loan Duration: Bridge loans are not held long-term; therefore, terms are usually 6 to 24 months.
- Higher interest rates: Expect interest-only rates in the 8 to 15% range
- Collateral: Typically, the property that is being sold
- Quick funding: Can be funded in 5 to 7 days.
- Exit strategy: Bridge lenders will want to hear an exit strategy from the borrower, usually via selling the property or securing a traditional bank loan.
For a Los Angeles Bridge Loan
Not only will a bridge lender ask for the borrower’s exit strategy, but they will require a few pieces of documentation from the investor to demonstrate their ability to make the monthly interest payments and the full repayment of the bridge loan when the term of the loan is due.
Strong Equity
- Lenders want borrowers to have skin in the game. The property being used as collateral should have sufficient equity, ranging from 25 to 40%, putting the loan-to-value ratio at 75% or less
Exit Strategy
- Lenders want to clearly understand how they will be repaid once the term of the loan is due.
- Most common exit strategies include a sale of the collateral property or refinancing the new property into a bank loan.
Credit Score
- While credit scores are not at the top of the list of importance, if a borrower shows a past history of bankruptcy or foreclosure, it could make getting a bridge loan more challenging.
- Los Angeles bridge lenders can be flexible with poor credit scores as long as the borrower has a solid explanation.
- A strong credit score, consistent payment history, and overall financial strength of the borrower will be part of the bridge lender's underwriting process, but equity and collateral are king.
Income
- Must be able to show the ability to cover monthly payments to service the loan until the loan term is due.
Collateral (The Property)
- This is the closest to the top of the list for most Los Angeles bridge lenders. Lenders want to know they will be protected in the event the borrower defaults on the loan payments.
Loan-to-Value
- The lower the LTV, the more attractive and higher the likelihood that the lender will fund the deal. At a minimum, the LTV should be below 75%, but aim for the 50 to 60% range to have your choice of lenders and get the best rate.
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