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Malibu's high-barrier real estate market rewards speed. Hard money loans fund in 7-14 days when coastal opportunities appear.
Most Malibu deals involve properties needing renovation or distressed sellers. Traditional lenders won't touch these scenarios.
Hard money fills the gap between opportunity and traditional financing. Investors use it to secure properties that won't qualify for conventional loans.
Hard Money Loans in Malibu
Lenders care about the property, not your tax returns. They lend 60-75% of after-repair value on coastal properties.
You need skin in the game. Expect to put 25-40% down, especially on Malibu's premium parcels.
Credit matters less than equity. I've closed deals with 580 scores when the property math works.
Exit strategy is mandatory. Lenders want to see how you'll refinance or sell within 12-24 months.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Malibu.
Malibu's high-barrier real estate market rewards speed. Hard money loans fund in 7-14 days when coastal opportunities appear.
Most Malibu deals involve properties needing renovation or distressed sellers. Traditional lenders won't touch these scenarios.
Hard money fills the gap between opportunity and traditional financing. Investors use it to secure properties that won't qualify for conventional loans.
Southern California hard money lenders know Malibu's quirks. They understand Coastal Commission restrictions and fire rebuild scenarios.
Rates run 9-14% with 2-4 points upfront. Higher leverage costs more, especially on properties above $2 million.
Terms typically span 6-24 months. Most investors refinance into DSCR loans once renovations finish and the property stabilizes.
Not all hard money lenders handle coastal properties. Many cap loans at $1 million, which doesn't work for most Malibu deals.
Hard money works best for quick acquisitions and heavy renovations. If you're buying a turnkey Malibu rental, DSCR loans cost half as much.
Factor in total cost of capital. A 12% hard money loan for 90 days often beats losing a deal to faster cash buyers.
I see investors waste money holding hard money too long. Line up your permanent financing before closing the purchase.
Malibu properties can take 18+ months to permit and renovate. Budget for extension fees or plan your DSCR refinance carefully.
Bridge loans offer similar speed at lower rates but require better credit. Hard money approves borrowers bridge lenders reject.
DSCR loans cost 7-9% and work for 30 years. Switch to DSCR once your Malibu property is renovated and producing rental income.
Construction loans require detailed budgets and draw schedules. Hard money lenders care less about your contractor's timeline.
Investor cash-out refinances take 30-45 days. Hard money closes in half that time when you need to act fast.
Coastal Commission approval affects timelines and property value. Lenders discount heavily if permits aren't secured.
Fire rebuild opportunities appear regularly. Hard money funds these deals while insurance proceeds settle and building departments clear backlogs.
Malibu's septic and water issues complicate lending. Work with lenders who understand these infrastructure constraints.
High property values mean large loan amounts. You need lenders comfortable with $2-10 million hard money deals, not just small rehabs.
Most deals close in 7-14 days. Coastal properties sometimes take 10-16 days if the lender needs additional environmental review.
Expect 25-40% down depending on property condition and your experience. First-time flippers pay more than seasoned investors.
Hard money is for investment properties only. You'd need a bridge loan or renovation loan for owner-occupied purchases.
Most investors refinance into DSCR loans for rentals or sell to end buyers. Both options work once renovations finish.
Some will, but you need approved permits and a strong construction plan. Most prefer renovation deals over ground-up builds.