A hard money loan in California is collateral-first, short-term financing for time-sensitive deals — auction buys, distressed acquisitions, and BRRRR rehabs in Central Valley (Fresno/Bakersfield) and beyond. Speed and certainty of close are the product.
What California investors use hard money for
- Estate and probate acquisitions in Central Valley (Fresno/Bakersfield) that need certainty of funds
- Auction and trustee-sale buys — close on the courthouse timeline, not a 45-day bank clock
- BRRRR starts — acquire and rehab, then exit to California DSCR
- Distressed / non-warrantable assets a conventional lender will not touch
Why speed matters here: California foreclosure is non-judicial — trustee-sale foreclosure is standard and avoids court timelines. Cash-like certainty wins these deals against slower conventional offers.
California hard money terms (2026)
| Term | California range |
|---|---|
| Leverage | Up to ~90% of purchase + rehab, capped to ARV |
| Rate | Interest-only, ~10%–13% + points |
| Term | 6–18 months |
| Close | As fast as 7–14 days |
| Basis | Asset-based; $485,000 – $850,000 typical ARV |
California metros we fund
| Metro | Typical basis | Rent band | On-the-ground notes |
|---|---|---|---|
| Central Valley (Fresno/Bakersfield) | $330K–$460K | $1,800–$2,400 | lowest basis; strongest yield-on-cost in the state |
| Sacramento | $430K–$650K | $2,100–$2,900 | ADU scope ties draws to permit milestones |
| Inland Empire (Riverside/San Bernardino) | $480K–$680K | $2,400–$3,200 | value-add lane with logistics-job demand |
California levies state income tax (up to 13.3%); structure the hold or flip exit with that in mind.
Diligence before you fund in California
Underwrite local risk honestly in California:
- Wildfire/WUI insurance availability
- Seismic retrofit requirements
- Coastal and flood overlays
What we need to issue a California term sheet
- Entity documents (LLC operating agreement, EIN) for vesting
- Scope of work and rehab budget
- Proof of funds for down payment and reserves
- Comps or a desktop valuation toward ARV
- A credible exit — resale comps or projected rent
Clean documents on these points are what compress a California closing to days, not weeks.
Recent California deal
Sacramento SFR plus ADU scope funded with draw schedule tied to permit milestones. Asset and exit drove the approval — not a personal income file.
Define the exit before you borrow
Hard money is a bridge, not a destination. In California that means one of two exits:
- Resale — finish and sell via fix and flip loans California economics
- Refinance — stabilize and hold with a California DSCR loan
California DFPI licensing; AB 1482 rent caps and local ordinances affect DSCR exit modeling.
California hard money FAQ
How fast can a California hard money loan close?
With clear title and a workable scope, California deals can fund in roughly 7–14 days — fast enough for Central Valley (Fresno/Bakersfield) auction and estate deadlines.
What leverage do California hard money lenders offer?
Commonly up to ~90% of purchase plus rehab, capped against ARV (often the $485,000 – $850,000 band in California). Pricing reflects speed and asset risk, not your credit score alone.
What is the exit on a California hard money loan?
Either resale via fix and flip, or refinance into a California DSCR loan on stabilized rent. Define the exit before you fund.
Get Your California Hard Money Quote · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.