Hard Money Lenders Los Angeles: Quick Funding Options

Published on December 10th, 2025
11 min read

Sam Dadofalza Associate Editor
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Sam Dadofalza Associate Editor

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Sam Dadofalza is an associate editor at HomeLight, where she crafts insightful stories to guide homebuyers and sellers through the intricacies of real estate transactions. She has previously contributed to digital marketing firms and online business publications, honing her skills in creating engaging and informative content.

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Looking to fund your next real estate venture in Los Angeles? Whether you’re aiming to flip a historic Craftsman in Echo Park or invest in a rental property in Silver Lake, hard money lenders in Los Angeles offer the flexibility and speed needed to close the deal. These loans provide an alternative to traditional financing, perfect for those with tight timelines, limited initial capital, or credit challenges.

Not just for seasoned investors, hard money loans are also helpful for homeowners needing a quick funding solution. This article will guide you through the essentials of hard money lending in Los Angeles, helping you determine if this financing option aligns with your real estate goals or home-buying needs. If you’re a homeowner looking to bridge the gap between buying and selling, we’ll also explore some useful alternatives.

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What is a hard money lender?

A hard money lender is a private individual or company that provides short-term loans secured by real estate. Unlike traditional lenders, who emphasize the borrower’s credit and income, hard money lenders in Los Angeles tend to focus on the property’s value, which is used as collateral.

They often work with real estate investors, including house flippers and rental property buyers, who require quick access to funds and flexible terms. Hard money lenders determine loan amounts using the after-repair value (ARV), which is the estimated value of a property after renovations and repairs are completed.

Interest rates for hard money loans typically range from 8% to 15% or more, and repayment periods are usually between six to 24 months. Additional costs include origination fees, closing costs, and points (upfront fees, expressed as a percentage of the total loan amount). If a borrower fails to repay a hard money loan, the lender can seize the property to recover their investment.

How does a hard money loan work?

If you’re a real estate investor in LA and need quick, flexible funding, hard money lenders can be a great option. Here’s an overview of how hard money loans work:

Short-term loan: These loans usually have a repayment period of six to 24 months, unlike the 15- or 30-year terms of conventional mortgages. Some lenders will even extend the term up to 36 months if needed.
Faster funding: When you need to close a deal quickly, hard money loans can be approved in just a few days, compared to the 40 to 50 days typical for a mortgage loan.
Less focus on creditworthiness: Approval depends less on your credit score or income history and more on the collateral.
Greater emphasis on property value: These loans require collateral, such as a home, and are based on the loan-to-value ratio of the property.
Non-traditional lenders: Individual investors or private lending companies typically offer hard money loans, not traditional banks.
Loan denial: These loans are often used by those with poor credit who have been denied a mortgage but have significant home equity.
Higher interest rates: Due to heightened risk, these loans come with higher interest rates than traditional mortgages.
Larger down payments: Borrowers may need to fork over a heftier down payment, sometimes up to 20% to 30%, depending on the property’s value and loan specifics.
More flexibility: With less government regulation, hard money lenders in Los Angeles can be more flexible about credit scores and debt-to-income (DTI) criteria, and loans can help sellers avoid foreclosure.
Interest-only payments: Unlike traditional mortgages, hard money loans may initially allow for interest-only or deferred payments.

What are hard money loans used for?

Hard money loans are often used by Los Angeles investors who need their money quickly or who may not qualify for traditional bank loans. Let’s explore some of the situations where hard money loans might be a good option.

Flipping a house: For Los Angeles investors focused on flipping homes, hard money loans offer fast access to cash for purchasing and renovating properties. These quick-turnaround loans help flippers buy homes in competitive markets, make improvements, and resell them for profit quickly.

Buying an investment rental property: Investors looking for rental properties can use hard money loans to buy quickly, especially those needing immediate repairs. Compared to traditional loans, hard money loans allow landlords to complete renovations and start generating rental income sooner.

Purchasing commercial real estate: In commercial real estate, hard money loans are known for being flexible and closing fast. This makes them particularly attractive to investors who need to move quickly, especially when facing tight deadlines.

Looking for alternatives to traditional loans: Individuals with substantial home equity but poor credit or other disqualifying factors often turn to hard money lenders. These loans focus more on the asset’s value than the borrower’s credit score, making them accessible to a wider range of buyers.

Facing foreclosure: Homeowners nearing foreclosure may use hard money loans to refinance their debts or buy time to sell their property. This can provide a temporary solution to avoid losing their home or having a foreclosure mark on their credit report.

How much do hard money loans cost?

The cost of hard money loans is generally higher due to the increased risk and quick funding. Here are typical costs:

			
			Interest rates: These can range from 8% to 15%, depending on the lender’s risk assessment.
Origination fees: Lenders may charge 1% to 5% of the total loan amount.
Closing costs: Additional fees at closing can include legal, appraisal, and administrative costs.
Points: Lenders might charge points (a percentage of the loan amount) upfront.

Use online hard money loan calculators to estimate these costs.

Alternatives to working with hard money lenders

If you’re a homeowner looking for alternatives to hard money loans, here are a few options to consider:

Take out a second mortgage: If you have substantial equity in your home, a home equity loan or home equity line of credit (HELOC) can provide the needed funds at a lower interest rate compared to a hard money loan.

Cash-out refinance your home: This option allows you to refinance an existing property, pulling out cash to finance your new investment. It often comes with lower interest rates than hard money loans.

Borrow from family or friends: A personal loan from family or friends can offer flexible repayment terms and potentially lower or no interest rates, making it a more affordable option.

Use a government-backed loan program: Programs offered by the FHA, VA, or USDA can help buyers purchase homes with lower down payments and reduced interest rates.

Consider peer-to-peer loans: These loans are provided by individual investors through lending platforms like Funding Circle. They function similarly to hard money loans but often have different terms.

Explore specialized loan programs: If you already have a hard money loan and want to replace it, consider specialized loans for fixer-uppers or investment property refinancing.

Request a seller financing option: In some cases, sellers may agree to finance the purchase themselves, which can result in lower closing costs and less stringent eligibility requirements.

How to buy before you sell

Sometimes the perfect home hits the market when you least expect it. Perhaps it’s a spacious townhouse in Culver City or an industrial loft in DTLA. For Los Angeles homeowners aiming to buy a new home before selling their current one, HomeLight offers a seamless solution.

The Buy Before You Sell (BBYS) program allows you to tap into your existing home’s equity to make a strong, non-contingent offer on a new property. If eligible, you can get your equity unlock amount approved within 24 hours without any upfront costs or obligations. This approval allows you to purchase your next home confidently and sell your current home vacant, eliminating the stress and hassle of moving twice.

Here’s how HomeLight Buy Before You Sell works:

While the BBYS program has a flat fee based on your current home’s sale price, the potential savings in other areas might outweigh this cost. You could save on moving expenses, temporary housing, and possibly even the purchase price of your new home. Additionally, HomeLight’s BBYS fees are generally much lower than bridge loan interest rates, which range from 9.5% to 12%.

3 top hard money lenders in Los Angeles

Finding the right hard money lender in Los Angeles can make or break your deal, especially with how fast the market moves. To help you out, here are three lenders investors in the area trust for quick, flexible financing. Each one has a solid track record, competitive terms, and experience with the unique pace of Los Angeles real estate:

PB Financial Group Corporation

PB Financial Group Corporation, headquartered in Los Angeles and established in 2006, provides an extensive suite of hard money lending solutions for both residential and commercial real estate. With more than 2,400 funded transactions, the firm has built a strong track record of reliability and execution. Offering loan amounts from $50,000 to $5 million, PB Financial is known for its efficient process, often closing deals in as little as five days.

Lending clientele: Owner-occupiers, heirs of probate estates, trust beneficiaries, and residential and commercial real estate investors

Loan criteria: Up to 60% to 70% LTV

PB Financial Group Corporation has been accredited with the Better Business Bureau (BBB) since 2020, and holds an A+ rating. On Google, it earned a high 4.6-star rating. Previous clients praise the team’s responsiveness and ability to close deals quickly, even in complex situations involving liens or foreclosures.

Others share that working with the company was a smooth and reliable experience, saying they’d gladly recommend them for hard money financing. They mention that the team followed through on their commitments and met every deadline, providing exactly what had been agreed upon.

Website: calhardmoney.com

Phone number: 877-700-3703

Hard Money Lenders California

Hard Money Lenders California is a trusted hard money lender serving borrowers throughout the state, offering financing solutions for deals ranging from $100,000 to $100 million. The company streamlines the lending process with a simple online application that clients can complete in under 10 minutes, making it easy to secure funding for real estate projects of any size.

Within 24 hours of receiving an application, the team provides a clear, transparent offer outlining all terms, ensuring borrowers know exactly what to expect from the start.

Lending clientele: Residential, commercial, and development investors, and homeowners

Loan criteria: Up to 85% LTV; in certain scenarios, up to 90% LTV

Earning praises from past clients, Hard Money Lenders California holds a 5-star rating on Google. Customers commend the team’s great service, honest terms, and attention to detail.

Some highlight how the team takes time to understand each client’s goals, offering clear, actionable guidance that simplifies even the most complex financial concepts. Others also recognize the consistent communication, quick responses, and proactive support throughout the process.

Website: hardmoneylenderscalifornia.com

Phone number: 858-203-2854

City Capital Realty

Founded in 2000 and headquartered in Westwood, City Capital Realty specializes in hard money lending for investors and property owners. The company provides flexible terms, competitive rates, and financing from $250,000 up to $10 million. With most applications approved in fewer than nine business days, borrowers benefit from swift, reliable access to capital for their real estate ventures.

Lending clientele: Residential and commercial real estate investors, and homeowners

Loan criteria: LTV up to 70% of ARV

City Capital Realty maintains a 4.8-star rating on Google, as clients mention how the team delivers a standout hard money lending experience marked by genuine support. Borrowers appreciate the team’s deep understanding of hard money loans and their ability to clearly break down the process, terms, and requirements.

Their guidance helps clients feel confident and well-informed from the beginning. The application process is described as smooth and efficient, with clear instructions that make gathering and submitting documentation quick and stress-free.

Website: citycapitalrealty.com

Phone number: 310-714-5616

Should I partner with a hard money lender in Los Angeles?

Deciding whether a hard money loan is right for you depends on your specific situation and real estate investment goals in Los Angeles. This type of financing is best suited for real estate investors who need quick access to funds for projects like flipping houses or buying investment properties. It’s ideal when traditional financing is unavailable or too slow, as it offers a fast, flexible funding option despite higher costs and shorter repayment terms.

If you are a homeowner looking to leverage your equity, consider HomeLight’s Buy Before You Sell program as a better alternative. This program allows you to make a non-contingent offer on your new home by tapping into your current home’s equity, with a flat fee rather than the high interest rates associated with hard money loans.

As with any major financial decision, it’s important to consider your long-term strategy and consult with a financial advisor. HomeLight can also connect you with investor-friendly real estate agents in Los Angeles who have access to trusted hard money lenders.

Let HomeLight introduce you to top professionals who can guide you through your real estate investment journey in the City of Angels.

Header Image Source: (Josh Miller/ Unsplash)

Editor’s note: This post is for educational purposes only and should not be considered financial advice. HomeLight encourages you to consult your own advisor.

At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.

Sam Dadofalza

Associate Editor

Sam Dadofalza is an associate editor at HomeLight, where she crafts insightful stories to guide homebuyers and sellers through the intricacies of real estate transactions. She has previously contributed to digital marketing firms and online business publications, honing her skills in creating engaging and informative content.