Why Borrow with Pacific Private Money?
When you have an important real estate transaction or are in need of investment property loans, you need a reliable source of funding that is also experienced, friendly, and committed to making the entire process as painless as possible.
Pacific Private Money Loans is the source you can count on! We are the fastest growing private lender in Northern California and have made over 2,000 loans since 2008 to borrowers like you. Find out how we can help you achieve your goals today.
Unlike conventional lenders, private money lenders offer fast, highly reliable financing based on holistic factors. We like hearing about the story. If you are in search of a lender that can make commercial real estate loans, real estate investment loans or bridge loans, and you’re not having a lot of luck with the big banks and corporations, we’re here to help.
Our Specialized Approach
We focus on four main types of loans:
General Lending Parameters
Below are general lending guidelines we use to evaluate each borrower’s loan scenario. Equally important is the “story” behind the scenario. Tell us your story.
| Loan Types | Owner-occupied/consumer, construction, fix and flip/rehab, commercial |
| Types of Properties | Single family homes, apartments, residential developments, small commercial |
| Loan Amounts | $150,000 to $4,000,000* |
| Loan-to-Value | 70% LTV in most cases. Higher LTV, ARV-based and participation loan options available. |
| Lien Position | 1st or 2nd |
| Interest Rates | 7.99% to 10.99% (can be lower for very low LTV loans) |
| Origination Fees | 1.5% to 2.5%, depending on loan size, LTV, maturity |
| Doc/Processing Fees | $1,495 - $2,495 |
| Loan Term | 6 months to 30 years (for consumer purpose loans) |
| Valuation Method | Appraisals or BPO’s generally required, certain exceptions apply |
| Borrower Types | Individuals, Trusts, LLCs, Corporations |
| Closing Timeframes | 5 - 14 days (longer when TRID rules apply) |
| Lending Area | California |
| Other | No upfront fees |
| *Loan amounts below and above stated range are possible on a case by case basis |
What Our Investors are Saying
Frequently Asked Questions
Here are some of the most frequently asked questions people have when applying for investment property loans and consumer purpose loans in the private lending industry.
How fast can we close, and why are we so much faster than banks?
For speed and deliverability, banks can’t touch private money, which is not being bogged down by bean counters and over-burdensome lending policies and procedures. In many cases, a private money loan commitment is as good as an all-cash offer. Reputable private lenders regularly close in less than 10 business days, and sometimes as fast as 72 hours. When it comes to a residential private money loan, with your cooperation, we can close most transactions in 7-14 business days.
What can you expect to fill out for a private money loan?
When looking to get a loan, you can be expected to fill out a Uniform Residential Loan Application (form 1003). This is typically followed by a written loan scenario or “executive summary” detailing the borrower, collateral & exit strategy. Commercial loan applications will almost always start with the Executive Summary, which should include a brief introduction of the subject property, bios on the borrowing team, the purpose of the loan, and the amount being requested with specific detail on the Use of Funds. There should be a few photos of the subject property with some detail from the tax record, inclusive of map locations and designations. Also, the length of time or the term period for the loan should be identified. Most important is the Exit Strategy. This is a detailed plan on how the lender will be repaid.
Will the loan decision depend on my credit score?
We do not base our lending decisions on credit scores. We still pull your credit, but that is usually to confirm the nature of your credit profile, not your score.
How can private money change my offer making abilities?
With private money you can make aggressive offers on the investment properties you want to close. You will be able to make offers with no or low contingencies, and to structure the acquisition in any number of ways when you use private money. This gives you more control than typical investment property loans. In a competitive market, a private bridge loan will give you cash-like offer making abilities that allow your offer to stand out to the seller.
How do bridge loans work?
Bridge loans allow you to borrow money utilizing the equity you have in your current home to purchase a new home before you sell! Gone are the days of showing your home while you are living in it. Instead, find your next home, make a cash-like offer, and move into your new home right away. Once you are moved out, your agent will have time to ready your house for sale, and to work with a stager to target a larger purchase price.
Who qualifies for a bridge loan?
Our bridge loan will require a borrower to have a maximum LTV of 75%. This means you need a minimum of 25% equity in your home. The amount you can borrow when financing with a bridge loan is typically up to 75% of the combined equity value of your current home and the property value of the home that you intend to buy. For example, if your current home has equity of $500,000 (example – $1,000,000 market value less $500,000 in loans), and the home you want to purchase has a price of $1,500,000, then the maximum bridge loan amount would be equal to the purchase price of $1,500,000. In other words, there’s $2,000,000 in equity ($500,000 in your existing home plus $1,500,000 in the target home); therefore, 75% of that equals $1,500,000. That is how you can obtain a loan that’s essentially equal to 100% of the target property purchase price! Bridge loans are great tools to take advantage of.