>
$M+
Funded
Transactions
940
Properties
Funded
1,764
Clients
Served
2010
16 YEARS
IN BUSINESS

What we consider an Investment Property

Investment property loans in California are business purpose loans secured by non-owner-occupied residential real estate of one to four units. That includes rental property, duplexes, triplexes, and fourplexes held for passive income or repositioning.

The distinction matters because it determines how a property is underwritten. A fourplex is still residential collateral. Five or more units require commercial or multifamily financing and are evaluated on operating income rather than residential comparables. If your property has five or more units, or if you are acquiring an apartment building, mixed-use asset, or industrial property, our commercial loans cover that side of the portfolio.

Everything we originate is a business purpose loan. That is determined by how the funds are used, not by who lives in the property. More than 50% of the loan proceeds have to go toward business or investment purposes, and we typically stay well above that threshold. What we don't originate is consumer debt, so if the loan is for personal, family, or household use, this isn't the right program.

Loan Parameters at a Glance

Simple, Transparent Loan Structure

We keep our loan terms straightforward. Here is what you can expect when you work with SO-CAL Capital.

Loan Feature
SO-CAL Capital
Loan Amount
$100,000 - $10,000,000
Property Type
1-4 unit non-owner-occupied residential
Maximum LTV
Up to 70%
Interest Rate
Fixed
Lien Position
1st and 2nd Trust Deeds
Prepayment Penalty
None
Loan Purpose
Business Purpose / Investment
Term
Short-term, matched to you exit
States
CA, OR, WA, AZ, NV, CO, ID, UT, MT, WY, and more
Fees apply, and pricing is determined on a case-by-case basis. Terms are fixed at the outset, which supports predictable monthly payments while the loan is outstanding. Requirements are stated up front, and there are no junk fees or conditions buried in the fine print. Many investment loans carry a penalty for paying off early or refinancing. This program does not.
Why Real Estate Investors Keep Coming Back

How Investors Use this Capital

Our loan programs are structured around the property, the business plan, and your intended exit strategy, so the right financing is determined by the transaction itself, not a predetermined product menu.

Acquisition with certainty of close

A financing contingency is a disadvantage against a cash offer. Our capital lets you commit to a purchase and close on a timeline a conventional lender cannot match, then arrange permanent financing once the property is yours. Conventional loans for investment property generally expect a down payment in the 15% to 25% range, which is part of why a financed offer reads weaker than one that performs like cash.

Bridge financing between now and your exit

Most of what we do is bridge lending. You are bridging to a sale, to a refinance, or to stabilization. A bridge loan carries the property through the period when a bank will not lend, whether that is because the asset needs work, because permits are pending, or because the timeline is simply too short.

Cash-out through a 2nd trust deed

Many owners hold a first mortgage at a rate they have no interest in replacing. A cash-out refinance replaces that loan entirely, which is rarely the preferred move when the existing rate is well below market.

A 2nd Trust Deed, recorded as a second mortgage behind the existing loan, pulls equity out of a property you already own without disturbing the first position or changing the mortgage payments you are already making. That frees up capital for business working capital, covering a business tax obligation, or funding your next acquisition.

Properties a bank will not underwrite

Condition is the most common reason a conventional lender declines an investment property. Deferred maintenance, a gutted interior, unpermitted work, or a partially completed renovation are all situations we look at. We lend against collateral value and a credible plan.

Time-sensitive acquisitions

Trust and probate sales, auction purchases, and off-market opportunities run on deadlines that do not move. Sellers in these situations often value proof of performance over a marginally higher price.
Eligible Property Types

Investment Property Types We Finance

We lend against a wide range of investment property types across California and our other lending states.

Single-Family Residential
Duplexes
Triplexes
Fourplexes
Townhouse & Condominiums

If your asset has five or more units, see commercial loans.

Make-Sense Underwriting

There is an older phrase in private lending for how we evaluate a file. Make-sense underwriting. It means we look at the whole picture and decide whether the loan makes sense, rather than running a scenario through an automated checklist and calling that a decision.

In practice that means we look at the property, the loan-to-value ratio, and whether your exit strategy is credible. We are a manual, human review. Investors who are self employed, who carry income across several entities, or whose financial picture does not reduce neatly to the ratios conventional loans are built around are exactly the borrowers this approach exists for.

Other programs solve this with a formula. A DSCR loan, for example, qualifies the deal on projected rental income against debt service and stops there. That works when a property already performs on paper. It does not help when the value depends on a plan that has not been executed yet, which is where most of our files sit.

This is not the same as lending without standards. We underwrite conservatively, we cap leverage at 70% of value, and we decline files that do not pencil. What we do not do is let a rigid template reject a viable loan.

From First Call to Funded

How It Works

Getting started with SO-CAL Capital is straightforward. Here is what to expect from first contact to funded loan.

01

Submit Your Scenario

Share the basics with our team: the property, the loan amount you need, and your exit strategy. You do not need a completed application to start a conversation.
02

We Review the Deal

Our underwriting team evaluates the property, the LTV, and your plan. This is a human review, not an automated score. If the deal makes sense, we will tell you quickly.
03

Receive Your Term Sheet

If we can move forward, we will issue a term sheet with clear, straightforward pricing. No surprises and no hidden conditions buried in the back pages.
04

Close and Fund

Our direct lending removes the bottlenecks that slow institutional lenders down.
05

Execute Your Strategy

With capital deployed, you focus on what you do best. Whether that is a renovation, an acquisition, or a portfolio expansion, SO-CAL Capital is in your corner.
Where We Lend
Common Sense funding
States Served in Orange
We originate across California and the Western United States, including Oregon, Washington, Arizona, Nevada, Colorado, Idaho, Utah, Montana, Wyoming, and beyond.

California is not one housing market, and financing that works in one metro can misprice a deal in another. Within the state we are active in Orange County, Los Angeles, San Diego, San Francisco and the Bay Area, Sacramento, and beyond.

Frequently Asked Questions

Common Questions, Direct Answers

Private money lending is straightforward once you understand the mechanics. Here are the questions we hear most often from new investors:

What counts as an investment property loan?
Financing secured by non-owner occupied residential real estate of one to four units. Single family rentals, duplexes, triplexes, and fourplexes. Once a building reaches five units it is underwritten as commercial property.
Let's Fund Your Next Deal

Ready to put your
Capital to Work?

SO-CAL Capital has funded over $820 million across more than 940 properties, with common-sense underwriting, transparent fixed-rate pricing, and direct access to the team that actually approves your loan. If you have an investment property deal that needs private capital, tell us about it and we'll respond within one business day.

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