I just did a Los Angeles hard money loan for a fix and flipper. In the Southern California housing market, it is now very hard to be awarded the contract for a house with FHA, Fannie or Conventional pre approvals.

You are competing against the investor cash offers and offers with hard money loans that can be done in 7-10 days. Why would a seller want to wait for an appraisal, make the repairs that are recommended and have the seller sit on pins and needles hoping the loan conventional loan actually does come through?

Sorry to say that we are back to the days of multiple bids and going for much over asking prices, at least in the residential market. Commercial is recovering but not shooting to the moon like residential is. (We just did a retail in building Los Angeles, not far from where the Clippers play…notice I said the Clippers? Ha!) San Diego Flippers and Los Angeles investors are struggling to get that property where it’s actually priced reasonably to profit either short or long term.

I also recently did a San Diego hard money loan. The Letter of Intent that I provided was better than the conventional letters. The listing agent actually called me to see if the buyer really was going to get that loan. In 2009-2011 we actually had to be concerned if the future value of the property was going to be worth less than the current purchasing price.

That is no longer the case. The San Diego housing market and the Los Angeles housing markets are screaming upward. Those of us who have been around a while, know that it won’t last forever. I do feel that prices will skyrocket here for a least a year. That is my opinion only and I could be wrong. Southern California Investors who purchased in 2009 are actually starting to ask me for California 2nd mortgages with their appreciated properties. We are one of the few companies who do 2nd mortgages on California residential and commercial real estate.

If you can find a non owner occupied house or commercial property in San Diego, Orange County or Los Angeles that is priced reasonably without bidding against 10 others, tie it up with a California hard money loan…or cash with proof of funds if you have it!