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Hard Money Loans 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.
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.
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.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.