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Manhattan Beach investors face fierce competition for limited inventory in one of LA County's most expensive coastal markets. Hard money gives you speed when beach-close properties hit the market.
Most deals here involve teardowns or major renovations on older beach cottages. Traditional lenders won't touch these projects until work is complete, creating opportunity for asset-based financing.
The typical Manhattan Beach fix-and-flip runs $2-5 million with renovation budgets exceeding $500K. You need capital that moves at deal speed, not bank speed.
Hard Money Loans in Manhattan Beach
Hard money lenders focus on asset value, not your tax returns. They lend based on after-repair value (ARV) of the Manhattan Beach property you're acquiring.
Expect to put down 20-35% depending on experience level and project scope. First-time flippers pay higher rates and bring more cash than seasoned investors.
Credit matters less than with bank loans, but sub-600 scores trigger higher rates. Lenders want to see deal experience or a strong contractor relationship for major renovations.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Manhattan Beach.
Manhattan Beach investors face fierce competition for limited inventory in one of LA County's most expensive coastal markets. Hard money gives you speed when beach-close properties hit the market.
Most deals here involve teardowns or major renovations on older beach cottages. Traditional lenders won't touch these projects until work is complete, creating opportunity for asset-based financing.
The typical Manhattan Beach fix-and-flip runs $2-5 million with renovation budgets exceeding $500K. You need capital that moves at deal speed, not bank speed.
We work with 15+ hard money lenders who actively fund in Manhattan Beach. Not all hard money is equal—rates span 9-14% and points range from 1-4 depending on lender appetite.
Some lenders cap loans at $2 million, which eliminates them for most Manhattan Beach deals. Others specialize in coastal California and understand the premium exit values here.
Shopping matters more with hard money than any other product. One lender quotes 11% and 3 points while another offers 9.5% and 2 points on identical deals.
Manhattan Beach deals justify higher costs because exit values are strong. I see investors pay 12% interest on a beach cottage teardown and still clear $400K profit after a nine-month project.
The mistake is using hard money for projects that take longer than 12 months. Interest eats profit fast at these rates—get in, renovate, and exit or refinance.
Renovation draws matter here since most projects exceed $300K. Make sure your lender funds in stages as work completes, not just at purchase.
Walk neighborhoods before you deploy capital. Older homes two blocks from the beach perform differently than sand section properties—ARV assumptions must match reality.
Bridge loans work for stabilized properties with tenants in place. Hard money handles the messy middle—tear-downs, major rehabs, and properties banks won't touch.
After renovation completes, most investors refinance into DSCR loans at 7-8% if keeping as rentals. Hard money is acquisition and construction capital, not long-term hold financing.
Construction loans from banks take 60+ days and require contractor bids, budgets, and financial reviews. Hard money funds in two weeks based on asset value alone.
Manhattan Beach permits and inspections add time and cost compared to other LA County markets. Factor 90-120 days for plan approval before construction starts.
Coastal Commission jurisdiction affects properties near the beach. Some renovation projects require additional environmental review that extends timelines.
Property values here support aggressive lending, but exit strategy matters. The luxury rental market is strong if you pivot from flip to hold mid-project.
Winter months see slower buyer activity for high-end homes. Time your completion for spring and summer when luxury inventory moves fastest.
Most lenders want 600+ but some fund deals at 550 for experienced investors. Lower scores mean higher rates and more equity required.
Seven to 14 days is typical once you provide property details and financial overview. Cash-equivalent speed lets you compete with all-cash offers.
Many lenders provide renovation draws released as work completes. Expect 65-75% LTV based on after-repair value including construction budget.
Most loans include extension options at 1-2% of loan amount. Plan exit strategy before extensions run out—rates compound fast.
Yes, but plan to refinance into a DSCR loan once stabilized. Hard money rates make long-term holds unprofitable at 10-13% interest.