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Lakewood's postwar tract homes and aging apartment buildings create steady demand for investor capital. Most properties here need updates to compete, which makes speed matter more than rate.
Hard money fills the gap when traditional lenders move too slow. If you're buying at auction or need to close in 10 days, asset-based lending is often the only play.
Lakewood sits between Long Beach and Downey, with solid rental fundamentals. Investors use hard money here for fix-and-flip projects and bridge financing on multifamily conversions.
Hard Money Loans in Lakewood
Hard money lenders care about the property, not your W-2. They lend 65-75% of after-repair value, which means you need skin in the game but credit scores under 600 still work.
Expect to bring 25-35% down. Lenders want a clear exit plan: flip timeline, refinance into conventional, or verified buyer lined up.
No tax returns, no employment verification, no debt-to-income calculations. Just asset value, project scope, and proof you can execute the plan.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Lakewood.
Lakewood's postwar tract homes and aging apartment buildings create steady demand for investor capital. Most properties here need updates to compete, which makes speed matter more than rate.
Hard money fills the gap when traditional lenders move too slow. If you're buying at auction or need to close in 10 days, asset-based lending is often the only play.
Lakewood sits between Long Beach and Downey, with solid rental fundamentals. Investors use hard money here for fix-and-flip projects and bridge financing on multifamily conversions.
Southern California has dozens of hard money lenders, but rates vary wildly. I've seen 8.5% from relationship-driven private lenders and 13% from online platforms for the same Lakewood duplex.
Points matter as much as rate. Expect 2-4 points upfront, sometimes more if the deal is marginal or timeline is compressed.
Local lenders who know Lakewood appraise faster and price more aggressively. National platforms hedge with higher rates because they don't understand the Long Beach submarket.
Most first-time flippers overestimate speed and underestimate holding costs. At 10% interest plus points, every extra month kills profit margin on a $500K Lakewood property.
I push clients toward hard money with confirmed contractor bids and conservative timelines. Vague renovation plans get expensive fast when the project drags past 6 months.
The best hard money deals have a refinance path already mapped. If your credit is 680+ and you're converting to a rental, line up a DSCR lender before you close the hard money loan.
Bridge loans cost less but require better credit and slower closing. DSCR loans beat hard money rates by 3-4 points but won't fund properties needing major rehab.
If the property is rentable as-is, skip hard money entirely. A DSCR loan at 7-8% makes more sense than hard money at 11% for a property that just needs paint and carpet.
Construction loans offer longer terms but require licensed contractors and draw schedules. Hard money is faster and simpler for straightforward fix-and-flip projects under $150K in rehab.
Lakewood parcels are mostly single-family, which simplifies appraisals and resale. Multifamily conversions are rare here compared to Long Beach, so lenders price straightforward rehabs competitively.
City permits move reasonably fast for cosmetic work but plan 8-12 weeks for anything structural. Factor permit timelines into your hard money budget since interest accrues daily.
Exit markets are strong. Long Beach and Cerritos buyers shop Lakewood for affordability, and investor appetite for small multifamily stays consistent. That makes lenders more comfortable.
Most local lenders close in 7-14 days with clear title. National platforms take 14-21 days but may offer slightly lower rates.
Many lenders approve down to 550-580 credit. The property and your down payment matter more than your score.
Hard money is for investment properties only. You cannot occupy the property during the loan term.
Most lenders offer 6-12 month extensions at additional cost. Budget 1-2 points plus ongoing interest for each extension period.
Plan for 25-35% down plus closing costs, plus full renovation budget. Lenders rarely fund 100% of rehab costs upfront.