Bridge Loans in Los Angeles, CA

Purchase bridge loans enable investors to acquire real estate before completing planned sales of other assets. Common scenarios include finding an exceptional investment opportunity before an existing property sale closes, purchasing a new primary residence before selling the current home, or timing tax-deferred exchanges where replacement property identification deadlines create pressure. Our purchase bridge loans close quickly, often within 5-7 days, allowing you to make competitive offers with short contingency periods or cash-equivalent terms. These loans are structured with interest-only payments and terms from 6-18 months, providing adequate time to complete planned sales or arrange permanent financing. We underwrite purchase bridge loans primarily on the value of the acquisition property and your equity position, requiring minimal income documentation. This streamlined approach is particularly valuable for self-employed investors or those with complex financial situations that complicate conventional financing.

Refinance bridge loans provide short-term capital when existing debt matures, properties don't qualify for immediate conventional refinancing, or borrowers need time to improve property performance before securing permanent financing. These loans pay off existing lenders, stopping foreclosure proceedings, maturing loan balloons, or simply providing breathing room to execute a refinancing strategy. Common applications include properties with temporary vacancy issues that will resolve with lease-up, assets requiring renovation before qualifying for permanent financing, and situations where conventional lenders need additional seasoning time. Our refinance bridge loans can close within a week, preventing the disruption and costs of loan defaults or forced property sales. Terms typically range from 6-24 months with extension options, providing time to execute the transition to permanent financing or an appropriate exit strategy.

Rehabilitation bridge loans combine acquisition and renovation financing for properties requiring significant improvements. These loans allow investors to acquire distressed assets that don't qualify for conventional financing, complete renovation work, and then refinance into permanent loans based on the improved value or sell at retail prices. We structure rehabilitation bridge loans at up to 75-80% of total project cost (purchase plus renovation budget) with interest reserves that cover payments during the construction period. Draw schedules release renovation funds as work is completed, and loan terms accommodate realistic renovation timelines plus marketing periods for completed projects. This structure is ideal for fix-and-flip projects, multi-family repositioning, and commercial value-add strategies. The bridge loan provides capital through the renovation phase, with payoff coming from sale or refinance of the improved property.

Cross-collateral bridge loans allow investors to use equity in existing properties as collateral for new acquisitions without refinancing or disturbing existing financing on the collateral properties. This structure is valuable when existing loans have favorable terms that shouldn't be disturbed, when existing properties are held in entities with multiple partners requiring complex approval for refinancing, or when speed is essential and refinancing existing assets would create unacceptable delays. We can structure cross-collateral bridge loans using multiple existing properties to support a single acquisition, or structure junior liens on existing assets to supplement acquisition financing. These loans provide flexibility for portfolio growth without the costs and complexity of refinancing existing assets. Terms and leverage depend on the combined equity position across all collateral properties and the strength of the exit strategy.

Most bridge loans close within 5-10 days from application, with simpler transactions sometimes closing in as few as 3-5 days. Closing speed depends on property type, lien position, title complexity, and documentation readiness. For the fastest closings, having your documentation organized, including entity documents, property information, and exit strategy details, allows us to move immediately upon application. We coordinate directly with your escrow company and title insurer to ensure seamless transaction execution that meets your timing requirements.

Bridge loan interest rates typically range from 9-12% depending on loan size, property type, leverage level, lien position, and your track record as a borrower. These rates reflect the short-term nature of the loans, the value of speed and flexibility provided, and the asset-based underwriting that doesn't require extensive income documentation. Interest is typically charged only on drawn amounts, and most loans have no prepayment penalties, allowing you to minimize interest costs by paying off quickly when your exit strategy executes.

Bridge loan LTV ratios typically range from 65-75% of property value, with specific leverage depending on property type, location, and exit strategy strength. First position bridge loans on stabilized properties in prime locations may reach 75% LTV. Second position bridge loans or those on transitional properties typically max at 60-65% combined LTV with existing financing. Cross-collateral bridge loans considering multiple properties may achieve effective leverage equivalent to 80%+ on the acquisition property when substantial equity exists in collateral assets.

Bridge loans include extension options if your exit strategy takes longer than anticipated. Extensions typically require advance notice, extension fees (often 0.5-1% of loan amount), and potentially interest rate adjustments. We work with borrowers facing unexpected delays to find solutions rather than forcing distressed sales. However, it's important to have realistic exit timelines upfront, bridge loans are not designed for indefinite holds. If permanent financing or sale proves impossible, we can discuss alternative structures, though these typically involve additional costs and equity requirements.

Yes, bridge loans are commonly used in 1031 exchanges to acquire replacement properties before relinquished property sales close. The IRS requires that exchange funds not be constructively received by the taxpayer, so bridge loans allow acquisitions to proceed while sale proceeds are held by qualified intermediaries. Our bridge loans for 1031 exchanges are structured to coordinate with exchange timelines and qualified intermediary requirements. The bridge loan is paid off when relinquished property sales close and exchange funds are released. This structure allows exchangers to capture replacement properties that might otherwise be lost while waiting for sales to close.