California
The Premier California Hard Money Lender
Asset Based lending offers quick and simple financing for real estate investors across the state of California. We lend on fix and flips, new construction, cash out refinances, and buy & hold rental property. Our loans in California are fully serviced in-house, so you’ll be under the ABL banner from your first phone call through your final loan payoff, ensuring you receive a five-star experience. We partner with the best local appraisers, attorneys, and title agents in our lending areas, so our borrowers are working with the best in the industry. After you experience the ABL Difference, you’ll never use another hard money lender.
- Quick closings – as fast as 2 days with appropriate paperwork
- Flexible underwriting – loan programs designed for investors, by investors
- Transparent communication – no hidden fees or surprise costs
- Full service – a one-stop shop for all your lending needs
Prequalify Today
Prequalify for your loan today or call us at (201) 942-9090. We approve loans as fast as 24 hours. Our California private money loans can fund the following projects:
ABL Lends in: ABL lends in all of non-rural California, pending property and borrower underwriting
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“They’re more than just a lender to me, they’re a partner of mine.“
Experience The ABL Difference
See why thousands of local real estate investors trust ABL to be their real estate financing partner.
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Local Information For California Real Estate Investors
As one of the most expensive real estate markets in the US, the Golden State remains healthy in its various regions including savvy Bay Area and diverse Southern California. As California is adjusting to higher mortgage rates and rising inflation, trends in several metro areas are in the early stages of transitioning from a seller’s mark to a neutral setting. Although home prices vary across California, property remains expensive for more buyers. The California real estate markets have grown exponentially in the last few years, with popular cities seeing more population growth and therefore higher demand on rental and permanent housing. In August 2023, home prices in California were up 5% compared to last year, selling for a median price of $794,300. Demand for housing in the state is likely to remain steady and prices are forecasted to be at some of the lowest since the pandemic and real estate boom began. Moving fast paced is important in the California real estate market, that’s why working with a hard money lender like Asset Based Lending that closes in two weeks or less is perfect for growing your business.
Recommended Areas For California Real Estate Investing
Bay Area The housing market in the Bay Area has been a competitive area for quite some time but has seen several factors in recent years that make it desirable for investors. Since the pandemic onset in 2020 all nine counties in the Bay Area have experienced population declines, which has allowed homeowners to move to more affordable areas and work remotely. Renter demand is still high compared to the national average, and the environment is still extremely sought after for its popularity and diversity. With the Bay Area’s economics and property values, it’s a double-edged sword that remains a strong market for real estate investors. While the cost of living remains high, the young workforce and long-term sustainability contribute to its potential success. The average home value in the Bay Area stands at $1.1 million, reflecting a 7.8% decrease from September 2022, and spending approximately 14 days on the market. Because inventory remains low, potential buyers are bidding competitively. 44% of homes in San Francisco close over list price in Q4 of 2022. Even during post pandemic pricing, homes in the Bay Area are still a prime target area for investors. Sellers in the area have pricing power despite slower (but stable!) buyer demand. Additionally, rising California mortgage rates have pressured high-priced markets to cool off. Home affordability is predicted to level out into 2024, keeping the Bay Area a healthy merry-go-round for jobs, housing, and architecture.
San Jose As the largest city in Northern California, it’s a sector for high-tech industry where the housing market plays a crucial role in the area’s economic growth. Giant companies like Adobe, Apple, Facebook, and Google make San Jose the biggest driving factor for the real estate market. The region is hot and competitive with a strong demand for homes and low inventory; all the reason to keep the home of Silicon Valley on your real estate radar. 2023 is seeing a significant housing shortage in San Jose, which is common for major metropolitan areas. The San Jose market is characterized for its fast pace. Existing Single-family homes in this region sell for a median of $1.8 million in approximately 11 days, far quicker than the national average. Because there is not enough supply to meet demand, there are bidding wars as the prices of homes soar. Overall, home prices are up 12.5% year-over-year and the average home receives 6 offers. This means if you strike while the iron is hot, you could have a golden egg opportunity as an investor. Despite the median sale price being 221% higher than the national average and the cost of living 75% higher than national average, people still flock to San Jose and trends indicate continued appreciation in the long run. In the context of budget and affordability, investors should consider their individual project next to these rising prices. Overall employment has increased in San Jose as of October 2023, which means optimism for builders and new construction jobs.
San Diego With major healthcare, education, and tourism employers, San Diego has a diversified economy with desirable investment opportunities. Housing market trends in San Diego are very competitive and have some of the highest rent and price appreciation in the country’s history, making properties here extremely valuable. San Diego also has a robust economy thanks to the real estate market. In recent months, rising interest rates have had major effects on the housing market. Despite this, homes still get multiple offers because of the low inventory and create massive demand for rental properties. If you’re thinking about flipping a home to rent out in San Diego, you could be making a huge profit from those who simply cannot afford to buy homes. The median rent in San Diego is $2700, which would be much higher in a rental single-family property. Increased competition is attributed to the shortage of housing amid strong population growth in San Diego. Q2 of 2023 reported 57.8% of sales in San Diego area were sold over the list price and a growth rate of 5.1% is predicted for the August 2024 housing market, presenting strategic opportunities for investors. It’s important to evaluate your financial situation and long-term goals before making the decision to invest in San Diego.
Financing Your California Fix And Flips
Asset Based Lending specializes in fast financing for fix and flip investors with flexible loan options that cover a variety of rehab projects. On average, ABL rehab loans close in just 10 days and approve loans in 24 hours, so our borrowers never miss an opportunity. These 12-month interest-only bridge loans allow investors to acquire property and begin renovations using the most competitive rates on the market. Whether its multifamily flips or single family rehab, our hard money fix and flip loans can be underwritten to match any investment project that meets our minimum loan criteria. ABL flip loans provide funding up to 85% of property purchase price and 100% of the rehab costs. Click here to learn more about our California fix and flip loans.
Why California Investors Choose Fix And Flips
Fix and flips are the standard real estate investment and for a good reason, as these fast-paced projects can put tens of thousands of dollars into an investors pocket and allow them to move on to bigger and better investment opportunities. September 2023 California fix and flips are producing an average profit of $92,500 and with homes staying on the market for an average of 27 days, fix and flip investors can chain together several deals to walk away with healthy profits. With the fast moving markets, investors need fast moving loans. Our fix and flip loans focus on closing in 10 days on average, so our borrowers never miss an opportunity due to financial delays. Whether you need to close fast, are seeking flexible loan terms, or another lender simply dropped the ball, ABL is here to help.
Using Hard Money Loans For Fix And Flips
More real estate investors are choosing hard money loans for real estate investments than ever before, and there’s a few reasons behind that. Conventional mortgages have very restrictive criteria and offer the same level of flexibility as hard money loans, making them difficult for fix and flips and other real estate investments. Some investors turn to private money loans due to their direct lending and relaxed loan criteria, but the problem with private money lenders is their lack of hard commitment and potential to not follow through when funding is needed most. California hard money lenders offer the same level of security and reliability as traditional financial institutions while providing the speed and flexibility of a private money lender. By having full control of their own funds, a hard money lender can assess each borrower on the merit of their investment and determine loan viability based on the individual project. If the hard money fix and flip loan is coming from ABL, the loan is handled completely in-house which allows fast deal closings and professional draw management that funds your project on your schedule. When it comes to all types of real estate investments, but especially fix and flips, the best choice are ABL hard money loans.
Loans For California New Construction
Asset based Lending works with experienced builders and developers to finance their new construction investments. Investors use these 12-month interest-only bridge loans to cover the financial hurdles that can prohibit certain deals from going through. Rates for our new construction loans start as low as 9.99% and we provide loan amount ranging from $100K to $3.5M. We never charge prepayment penalties and offer a transparent loan process from start to finish, so you don’t have to worry about hidden fees. With more than half our borrowers returning for repeat business and hundreds of verified five-star reviews, it’s clear that Asset Based Lending has the best loans for California new constructions loans.
California New Construction Investment Info
Steady population growth combined with limited housing inventory has made California new construction a strategic decision for investors. As of August 2023, most people are no longer interested in investing in land and getting regulatory approval to increase the supply. The shortage of housing in California has caused constraints on the construction of new housing. Factors like single-family zoning and high land cost has contributed to the lack of new construction in California.
Choosing Asset Based Lending For New Construction Loans
As real estate investing becomes more popular, more investors are looking for additional capital and finding out it’s not as easy as it sounds. Many people first turn to banks, but banks are very risk-averse and tend to avoid new construction loans by having extremely restrictive criteria or flat out denying the loans. This has investors looking at private money lenders due to their relaxed criteria and more flexible loans, but private money loans don’t offer the same reliability and security of a financial institution which can cause major problems during construction. Luckily, private hard money lenders in California are somewhere in the middle and the hard money loans they offer are perfect for new construction projects. A hard money loan combines the security and reliability of a conventional bank loan with the speed and flexibility of a private money loan, allowing borrowers to rest assured that their funding will be guaranteed and delivered on time. Knowing you can trust the financing and that the loan will be tailored to match your specific project means you can focus on the important work- like finishing that gorgeous suburban home that you plan to sell for a profit! Whether you’re looking to build a few homes a year or you’re ready to scale to multifamily development, then contact us today to discuss your upcoming projects.
Loans for California Rental Property
Asset Based Lending offers fast and easy rental loans for California real estate investors. These term rental loans are designed for buy and hold investors that want to secure properties between 1-9 units or refinance an entire rental portfolio. We offer competitive terms with rates starting as low as 5% with leverage up to 80% LTV. Our goal is to provide the most flexible rental loan options to our borrowers including 30-year amortization, ARM, and interest-only options. ABL offers a variety of rental loan options with single rental loans up to $3M and rental portfolio loans up to $3M. We assess each project based on the income-producing viability of the property, allowing us to work with investors of all experience levels. ABL also provides the ability to use our bridge program to complete property rehab or finance ground up construction before refinancing into a long-term rental loan, making us a one-stop shop for California real estate investors. Click to learn more about our rental loan programs.
California Rental Markets
The severity of the current housing shortage will continue to push prices up for the rest of 2023. However, the California Association of Realtors has forecasted a significant increase of home sales in 2024 of 22.9% to 327,100 units. High mortgage rates for longer means many homeowners will choose to avoid selling and in turn, face much higher mortgage payments. Whether you’re looking to buy and hold property for traditional long-term rentals or are interested in growing a small portfolio of short-term rental properties, Asset Based Lending can help finance your success. If you’re ready to start or grow your real estate rental portfolio using our California rental loans, then contact us today.
Why Choose ABL?
We are Local Private Hard Money Lenders
- We understand your local real estate conditions
- We use local appraisers, title agents and closing attorneys
We are a Direct Lender
- We use our in-house money to fund your loans
- We directly control our approvals and closings
We are Reliable and We Close Fast
- Preliminary approval in 24 hours
- Close in 7-10 days
We Manage the Draw Process Efficiently & Quickly
- We help create and approve your draw schedule
- We use local inspectors to assess your progress
- We quickly release your funds when an inspection is approved
Asset Based Lending, LLC was founded in 2010 and is a leading local source of hard money in the residential real estate market. We have consistently received praise from our borrowers who emphasize our quick, hassle-free closings, favorable terms, and creative financing solutions.
Fill out our Pre-Qualification form to start the process.
