Private Lending for residential real estate 1-4 units Trust Deed States only

Lending Criteria

Property Considerations

  • Primarily 1 to 4 unit residential rehab and resale properties
  • Will consider multi-unit properties if very secure deals
  • Must be non-owner occupied
  • Focus primarily in California but will consider other states
  • Properties must be in active, desirable neighborhoods

Borrower Considerations

  • Must be or use highly qualified, experienced contractor(s)
  • Portfolio of successful projects highly desirable
  • Borrower credit score will be evaluated but not key decision criteria

Loan Parameters Charged to Project

  • 3 to 12 month terms
  • 12% -15% annual interest
  • Interest reserve built in for the term of the loan
  • Generally 4 to 6 points
  • Loan size of $50,000 to $2,000,000
  • No prepayment penalty
  • Up to 70% loan-to-after-repair-value
  • Split Equity
  • Can fund purchase and rehab with adequate collateral
  • Possibly fund interest escrow, points and closing costs as well with adequate collateral and the ability to show skin-in-the-game by both parties

Deal Parameters

  • Set up as borrower/lender relationship only
  • Deal must be safe and profitable for both parties
  • Both parties must show skin-in-the-game.  The following may qualify
    • Cross collateral of other NOO property, either by borrower or other
    • Additional personal Guarantor with adequate credit score and sufficient financials


Swanee Heidberg

Private Lender

(925) 895-2940

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