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Long Beach's diverse housing stock makes it a strong hard money market. Century-old bungalows in Belmont Shore and distressed properties in Central Long Beach create consistent flip opportunities.
Speed matters here. When competing against cash buyers on REO properties or courthouse steps, hard money closes in 7-14 days versus 30-45 for conventional.
Most Long Beach hard money deals I see are coastal teardowns or multi-unit value-adds near the Metro. Investors target properties banks won't touch due to condition or timeline pressure.
Hard Money Loans in Long Beach
Hard money lenders fund based on the property's after-repair value, not your credit score. Most require 20-30% down and look at your exit strategy more than your W-2.
Your experience matters. First-time flippers often need stronger projects or higher equity. Repeat investors with proven track records get better terms and faster approvals.
Expect rates of 9-14% with 2-4 points at closing. Loan terms run 6-24 months. These aren't cheap, but they're accessible when traditional financing isn't an option.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Long Beach.
Long Beach's diverse housing stock makes it a strong hard money market. Century-old bungalows in Belmont Shore and distressed properties in Central Long Beach create consistent flip opportunities.
Speed matters here. When competing against cash buyers on REO properties or courthouse steps, hard money closes in 7-14 days versus 30-45 for conventional.
Most Long Beach hard money deals I see are coastal teardowns or multi-unit value-adds near the Metro. Investors target properties banks won't touch due to condition or timeline pressure.
I work with 15+ hard money lenders who actively fund in Long Beach. Each has different appetites for property types, loan-to-value ratios, and borrower experience levels.
Some specialize in small residential flips under $500K. Others focus on multi-unit or commercial mixed-use. Shopping your deal across lenders can save 2-3 points on origination fees.
Local lenders often move faster than national funds because they know Long Beach neighborhoods. They understand which blocks in North Long Beach are trending versus declining.
Hard money works best when you have a clear 6-12 month exit. I've seen investors lose money holding properties past their loan term when they misjudged renovation timelines.
Get your contractor lined up before closing. Lenders release rehab funds on a draw schedule. If your contractor ghosts or runs over budget, you're stuck paying high monthly interest with no progress.
Most successful Long Beach flips I broker refinance into DSCR loans or sell before the hard money term expires. Have your exit plan before you sign the loan docs.
Bridge loans offer lower rates (7-10%) but require stronger borrower profiles. Hard money focuses purely on the asset and closes faster with looser requirements.
DSCR loans work for rental holds but take 30 days to close. If you're buying at auction or need to act within a week, hard money is your only realistic option.
Construction loans from banks require detailed plans, licensed contractors, and 45-day closings. Hard money lenders care more about your purchase price versus ARV spread than your blueprints.
Long Beach permits can run 8-12 weeks for major rehabs. Factor this into your loan term. Most lenders give 12 months but charge extension fees at 1-2 points if you need more time.
Coastal properties face California Coastal Commission review on certain improvements. This adds 30-90 days to timelines. Hard money rates make these delays expensive.
The strong rental market here creates good DSCR refinance options post-flip. Many investors use hard money to acquire and renovate, then cash-out refi into a rental hold instead of selling.
Most lenders approve with scores as low as 580-600. They care more about the property's value and your down payment than your credit history.
Typical closing is 7-14 days with all documents ready. Some lenders fund in 5 days for simple deals with strong equity positions.
Yes, hard money works well for 2-4 unit properties. Some lenders fund small apartment buildings if the numbers support the after-repair value.
Most lenders go up to 70-75% of after-repair value. Your down payment plus rehab costs should cover the remaining 25-30%.
Yes, most include rehab budgets in the loan. Funds release on a draw schedule as contractors complete work and pass inspections.
Lenders charge extension fees of 1-2 points for additional months. Some require full payoff and reapplication after the initial term expires.