Commercial Hard Money Lenders in California: The 2026 Guide
Save Financial arranges commercial hard money loans across all 58 California counties (NMLS #377740, DRE #01875766). As a licensed broker — not a single direct lender — we shop your deal across multiple private capital sources and return competing term sheets, typically within 24–48 hours. Typical commercial terms: rates around 9.5%–12%, interest-only, 1–3 points, 12–36 month terms, 55–70% LTV (up to ~70% of after-repair value on rehab deals), funding in about 7–10 days. Get a quote in 60 seconds — no SSN, no credit pull. New to hard money? Start with the complete California hard money guide.
When a commercial deal has a deadline — a maturing loan, an expiring escrow, a 1031 clock, a seller demanding a 10-day close — a bank's 60–90 day underwriting timeline can kill it. Commercial hard money exists precisely for that gap. Lenders underwrite the property rather than your tax returns, so a term sheet arrives in 24–48 hours and funding follows in days, not months. This guide covers how it works, what it costs, which program fits which situation, and how to choose the right capital source.
What Is a Commercial Hard Money Loan?
A commercial hard money loan is short-term, asset-based financing secured by commercial real estate — office, retail, industrial, multifamily 5+, mixed-use, self-storage, hospitality, or land. Instead of qualifying the borrower on W-2s, tax returns, and global debt-to-income ratios, the lender qualifies the deal: the property's value, the equity cushion, and a credible exit strategy.
Because the security is the asset itself, approval hinges on three questions:
- Is there enough equity? Most California commercial hard money lenders cap loan-to-value between 55% and 70%. For value-add projects, lenders may instead lend against after-repair value (ARV), typically up to about 70%.
- Is the exit realistic? Terms usually run 12 to 36 months. The lender needs to see how you repay — a sale, a refinance into conventional debt, or stabilization that supports permanent financing.
- Is the story fundable? Partial vacancy, non-traditional income, an LLC borrower, or a transitional asset will sink a bank application. For a private lender, these are ordinary facts of the deal, not disqualifiers.
California Commercial Hard Money Terms in 2026
| Term | Typical range |
|---|---|
| Interest rate | ~9.5% to 12%, interest-only |
| Origination points | 1 to 3 points, paid at closing |
| Max LTV | 55–70% of current value; up to ~70% of ARV on rehab |
| Term length | 12–36 months, extension options common; balloon at maturity |
| Loan sizes | Roughly $250,000 to $10M+; larger deals case by case |
| Speed | Term sheet in 24–48 hours; funding in about 7–10 days |
The money costs more than a bank loan — but the correct comparison is not hard money versus a bank loan. It is hard money versus losing the deal, missing a 1031 deadline, or leaving equity trapped in a stabilized asset. On a 12-month bridge, two or three extra percentage points of interest is frequently a rounding error against the profit the deal produces.
A Worked Example
Suppose you bridge a $2,000,000 mixed-use acquisition at 65% LTV — a $1,300,000 loan at 10.5% interest-only with 2 points, held 12 months while you stabilize and refinance:
- Points at closing: $1,300,000 × 2% = $26,000
- Interest: $1,300,000 × 10.5% = $136,500
- Approximate cost of capital: ~$162,500, plus title, escrow, and valuation fees
If leasing two vacant suites lifts NOI enough to raise the stabilized value by $500,000 — and the bank alternative could not close at all on a half-vacant building — the financing cost is the price of the profit, not an expense to minimize in isolation.
Commercial Programs and When to Use Each
Commercial Bridge Loans
Carry the deal from acquisition — or maturity of existing debt — to permanent financing or sale. Use it when a seller demands a fast close, a maturing loan needs payoff before the refinance is ready, or a property needs seasoning before a bank will touch it.
Explore bridge loansApartment & Multifamily Cash-Out
Convert trapped equity in a 5+ unit building into capital for the next acquisition, renovations, or a partnership buyout — without tax returns or W-2s.
Explore cash-outStated Income Commercial Loans
For self-employed investors and LLC borrowers whose tax returns understate real cash flow. The property's value and rent roll carry the underwriting.
Explore stated incomeCommercial Rehab / Value-Add
Acquisition plus renovation funds for repositioning projects — the vacant strip, the tired office, the under-rented mixed-use asset. Draws tied to milestones, up to ~70% of ARV.
Explore rehab loansCommercial Mortgage Loans
Longer-term financing for stabilized commercial assets once the bridge has done its job.
Explore commercial mortgagesConstruction & Land
Lot acquisition and ground-up builds with milestone-based draws for builders and experienced investors.
Explore constructionThe Exit: Stabilize, Then Refinance
Commercial hard money is the entrance; permanent debt is the exit. For multifamily, the natural exit is a DSCR loan that qualifies on the property's income — DSCR = gross monthly rent ÷ monthly PITIA, with most programs requiring roughly 1.0–1.25+. For other commercial assets, the exit is a conventional commercial mortgage once occupancy and NOI support it. Read the complete DSCR guide or see the DSCR program page.
Because Save Financial brokers both sides — the hard money entrance and the DSCR or commercial mortgage exit — your refinance is mapped before the first loan funds. Maturity becomes a plan, not a scramble.
Direct Lender vs. Broker on Commercial Deals
A direct lender offers exactly one source of capital at exactly one price — and commercial appetites shift constantly with property type, submarket, and leverage. A licensed broker circulates your deal to multiple private lenders, funds, and trust-deed investors simultaneously. The practical consequences: competing term sheets that routinely shave rate or points off the first quote, a file that moves instead of restarting if one lender pulls back, and both the entrance and the exit loan placed under one roof.
Whichever route you choose, verify the license before wiring a deposit. Check status, expiration, and disciplinary history in the California DRE public license lookup; the California Attorney General publishes guidance on checking licensees. Save Financial: NMLS #377740, DRE #01875766 — full licensing details.
How to Close in 7–10 Days
Day 1–2 — Submit the deal. Property address, purchase price or payoff amount, requested loan amount, and your exit strategy. Competing term sheets return within 24–48 hours.
Day 2–5 — Valuation and title. Many private lenders accept an internal valuation or BPO instead of a full commercial appraisal. Open escrow and order your insurance binder immediately — insurance is the most common closing delay in California.
Day 5–8 — Loan documents. No committee, no second underwrite.
Day 7–10 — Sign, fund, record.
Property Types & Coverage
Office, retail, mixed-use, multifamily 5+ units, industrial, warehouse, self-storage, hospitality, and distressed or value-add assets — across Los Angeles, Orange County, San Diego, the Bay Area, Sacramento, the Inland Empire, and all 58 counties. See all service areas.
Frequently Asked Questions
Do I need an LLC to get a commercial hard money loan?
Not always, but most commercial lenders prefer or require an entity borrower (LLC or corporation) for business-purpose loans. Forming a California LLC takes days and is usually worth it for liability protection anyway.
Will a vacant or partially vacant building qualify?
Yes — vacancy is one of the main reasons borrowers use commercial hard money. Banks decline transitional assets; private lenders underwrite the value, the equity, and the stabilization plan.
Will bad credit kill the deal?
Rarely by itself. Asset-based lenders care about equity and exit. Credit issues may adjust pricing, not eligibility.
Can this work with a 1031 exchange deadline?
Yes — speed is the point. A 7–10 day close is one of the most common ways investors rescue a 1031 identification or closing deadline that bank underwriting cannot meet. Confirm structure with your qualified intermediary and tax advisor.
How much equity do I need?
With LTVs capped at 55–70%, plan on roughly 30–45% equity — from cash, cross-collateral on another property, or a genuine purchase discount.
What is the exit at maturity?
A sale, or a refinance into permanent debt once the property is stabilized — commonly a DSCR loan for multifamily or a conventional commercial mortgage. We map the exit before the loan funds.
Get Competing Term Sheets on Your Commercial Deal
Send the deal — address, price, loan amount, exit — and receive term sheets within 24–48 hours. No SSN, no hard pull to start.
Apply in 60 Secondsor call 949-379-5320
Save Financial, Inc. · NMLS #377740 · DRE #01875766 · Equal Housing Opportunity. Rates, points, and terms shown are typical current-market ranges, vary by property, leverage, and borrower profile, and are subject to change without notice. This page is educational and is not an offer to lend or a loan commitment. All loans subject to credit and property approval. Office addresses are non-client-facing.