Inland Empire investors and developers use hard money when the timeline, the property condition or the borrower structure does not suit a bank. A private lender looks mainly at the equity in the property, your capacity to make payments and your exit, then funds quickly if the file supports it.
We are a licensed California private money broker based in Torrance and lend across the state. Below is how private bridge and construction financing generally fits the property types common in the region, and how to prepare a request.
Property types and how financing fits
The Inland Empire has a wide mix of real estate. Without making claims about any particular submarket, here is how private financing typically applies to the main categories.
Industrial and commercial
Industrial and commercial buildings are often bought, repositioned or refinanced on schedules that banks find hard to meet. A vacant or partly leased building, a purchase that must close quickly, or a property needing improvements before it can qualify for long-term debt are all common bridge situations. Our commercial hard money and bridge loans are built for these cases.
Residential investment
Single-family and small multifamily investors often need to close fast, renovate, then refinance or sell. A bridge loan can carry the property through the work. Our private loans are secured by real estate and underwritten on equity rather than credit score.
Land and ground-up construction
Land purchases and ground-up projects raise different questions: entitlements, plans, budget and the builder. Construction financing can fund the project in stages and, for our program, can convert to a permanent loan at conventional rates when the project is complete. We discuss the details in our article on bridge-to-permanent conversion.
Key takeaways
- Private financing suits deals that are time-sensitive, not yet stabilized, or outside a bank's standard criteria.
- Equity, payment capacity and exit drive the decision, not credit score alone.
- Construction loans fund against a budget in stages; a clear budget and plan make a file much easier to read.
What we look at
Every application is reviewed individually, but the questions are consistent:
- What is the property worth, and what is it worth after work? Valuation drives how much a lender is comfortable advancing.
- How much equity is there? Equity is the cushion that protects the loan.
- Can the borrower make the payments? We want to see where the money comes from during the loan term.
- How is the loan repaid? A sale, a refinance, a lease-up that supports long-term debt, or completion of a build.
We go deeper on these questions in what private lenders look at when underwriting.
Preparing a clean request
The fastest files are the ones where the lender never has to ask the basic questions. Before you submit:
- Write two or three sentences on the deal: what you are buying or building, the loan amount you want and why.
- State your exit and your timeline for it.
- For industrial or commercial property, describe current occupancy and any leases in place.
- For land or construction, have the plans, permit status, budget and contractor information ready.
- Identify the borrowing entity and who is behind it.
Construction in the region
Our construction program covers ground-up and rehab projects, with loans up to 90% of construction cost and amounts up to $75 million. Minimal or no-doc options are available where the deal supports it. Construction lending depends heavily on the budget, so see our explanation of loan-to-construction-cost for how that ratio is read.
Where a project is large or complex, we would rather talk early. Describing a deal in a short call is usually faster than assembling a full package and finding out the structure does not fit.
Timing and costs
We can offer approval in as little as 24 hours and funding in as little as seven days, subject to a complete file, underwriting, title review and property valuation. Land and construction files often take longer because there is more to verify. Approval is not guaranteed.
Private loans typically cost more than bank loans and are short term. Judge them on total cost over the actual holding period and on whether the loan lets you do something you could not otherwise do. Ask for every cost in writing before you commit.
This article is general information only, not legal, tax or investment advice.
If you have an Inland Empire deal, call us at (800) 943-1314 or apply online. We will tell you honestly whether our programs fit.
Published by the US Lending & Company underwriting desk. General information only — not legal, tax or investment advice.