I am working with a small group of lenders offering a "soft-money" mortgage focused on the California market that is historically served by "hard-money" lenders. This private money product provides first trust deeds only on most real estate types including apartments, commercial, industrial, hotels, special purpose properties and land. Loan amounts range from $1 million to $50 million. This source of funding can also be used as a bridge for California developers enabling them to pay-off construction loans once the project is completed.

 

Advance rates for these bridge loans (up to 18 months) range from 50% to a maximum of 75% which varies by property type.  The maximum advance rate on land is 50% of perceived value.  Interest rates for improved property currently range from 8.5% to 10% and many of these deals can close in a week or less.  Points on these no up front money loans can range up to approximately 5%.