Loading
Loading
Cotati sits in central Sonoma County where investors compete for fix-and-flip opportunities and rental conversions. Hard money fills the gap when you need to close in 7-14 days or the property won't qualify for traditional financing.
This small city market moves fast when deals surface. Cash-equivalent closings through hard money keep you competitive against all-cash buyers who dominate investor purchases in Sonoma County.
Hard Money Loans in Cotati
Lenders evaluate the property first, your credit second. Most require 65-75% loan-to-value based on purchase price or after-repair value. Expect rates of 8-12% with terms spanning 6-24 months.
You need a clear exit strategy before closing. Refinance into conventional, DSCR, or sell after renovations. No exit plan means no approval, regardless of equity position.
Local decision guide
Use this guide to connect hard money loans eligibility, lender expectations, and local market factors before comparing payment options in Cotati.
Cotati sits in central Sonoma County where investors compete for fix-and-flip opportunities and rental conversions. Hard money fills the gap when you need to close in 7-14 days or the property won't qualify for traditional financing.
This small city market moves fast when deals surface. Cash-equivalent closings through hard money keep you competitive against all-cash buyers who dominate investor purchases in Sonoma County.
Lenders evaluate the property first, your credit second. Most require 65-75% loan-to-value based on purchase price or after-repair value. Expect rates of 8-12% with terms spanning 6-24 months.
We work with 15+ hard money lenders who fund Sonoma County deals. Some specialize in quick purchases, others in heavy rehab projects. Rate spreads vary 2-3 points between lenders for identical deals.
Local portfolio lenders often beat national hard money shops on price. They know Cotati market values and move faster on underwriting. Shopping across our network saves $3,000-$8,000 per loan in origination fees alone.
Most Cotati investors use hard money for 4-8 month holds. Buy distressed properties near downtown, renovate, then refinance into DSCR loans for rentals or sell retail. Carrying costs run $2,000-$4,000 monthly on a $400,000 loan.
Run your numbers before you write offers. Monthly interest, origination points, and holding costs eat profit fast. Every month you hold past your plan costs another month of interest. Budget 15% more time than your contractor promises.
Bridge loans cost less but take longer to close. DSCR loans beat hard money rates by 3-4 points but require cash flow from day one. Construction loans work for ground-up builds but not quick flips.
Use hard money when speed matters more than cost. Losing a deal to another buyer costs more than higher rates for six months. Once you stabilize the property, refinance into cheaper long-term debt.
Cotati properties under $600,000 attract the most investor attention in Sonoma County. Older homes near Rancho Cotate High School and downtown offer renovation upside. Lenders fund these deals readily given strong rental demand.
Sonoma County permit timelines affect your holding period. Budget 60-90 days for permits on major renovations. Some hard money lenders extend terms when permit delays push past your original timeline, but extensions cost additional points.
Most deals close in 7-14 days once we have property details and your down payment verified. All-cash equivalent speed keeps you competitive against cash buyers.
Most lenders approve 600+ scores, some go to 550. Your property equity matters more than credit history for approval decisions.
No. Hard money funds investment properties only. For owner-occupied purchases needing fast closes, we have other bridge loan options.
Most lenders offer 3-6 month extensions for 1-2 points. Request extensions before your maturity date to avoid default and higher penalty rates.
Rates run 8-12% vs. 7-8% for bank loans, plus 2-4 origination points. Higher cost buys speed and approval flexibility traditional lenders can't match.