Overview
San Diego's commercial real estate market offers exceptional opportunities for investors and business owners seeking to acquire, refinance, or develop income-producing properties. Our commercial real estate hard money loans provide the rapid, flexible financing necessary to capitalize on these opportunities across San Diego County's diverse commercial landscape. From retail centers in bustling districts to office buildings in emerging business corridors, we understand the unique demands of commercial property financing.
Commercial real estate transactions often require speed and certainty that traditional bank financing simply cannot provide. Whether you're competing against cash buyers for a prime retail location in Gaslamp Quarter, acquiring an office building in Sorrento Valley, or purchasing an industrial property near the port, our commercial loans close in a fraction of the time required by conventional lenders. This speed advantage can mean the difference between securing a lucrative commercial property and watching it go to a competitor.
Our commercial lending programs accommodate a wide range of property types and investment strategies. We work with experienced commercial investors, first-time commercial property buyers, business owners seeking owner-occupied financing, and developers looking for acquisition and construction funding. With loan amounts from $250,000 to $10 million or more, we can structure financing solutions for everything from small retail storefronts to substantial commercial portfolios throughout La Jolla, National City, Carlsbad, and beyond.
How This Loan Works
Commercial hard money loans serve multiple strategic purposes for investors and business owners throughout San Diego's diverse commercial markets. For acquisition financing, these loans enable rapid property purchases when time is critical, such as distressed commercial assets, foreclosure auctions, or situations where the seller requires a quick close. We frequently fund acquisitions of retail centers, office buildings, industrial warehouses, mixed-use properties, and special-purpose commercial real estate.
Refinancing existing commercial debt represents another common application, particularly for properties that have appreciated significantly or owners who need to access equity quickly. Business owners often use our commercial loans to refinance properties that no longer qualify for traditional financing due to changes in tenant mix, property condition, or the owner's financial situation.
Value-add commercial investments find ideal financing through hard money lending. Properties requiring tenant improvements, lease-up, repositioning, or significant renovations often cannot qualify for conventional financing until stabilized. Our commercial loans provide the acquisition and improvement capital needed to execute these strategies, with terms designed to bridge the gap until permanent financing can be secured.
Bridge financing for commercial properties represents another critical application. When timing gaps exist between property closings, construction completion, or lease stabilization, our short-term commercial loans provide the liquidity needed to maintain momentum and avoid costly delays. This is particularly valuable for developers working on multi-phase projects or investors managing complex commercial portfolios in San Diego's competitive market.
Common Challenges
Commercial real estate financing presents distinct challenges that make hard money lending an essential tool for San Diego investors. The complexity of commercial transactions often creates timing issues, with multiple stakeholders, due diligence requirements, and negotiating points that can delay conventional financing for 60-90 days or longer. In competitive markets, this delay frequently costs investors the deal.
Property-specific challenges also create barriers with traditional lenders. Properties with vacancy issues, short-term leases, unique tenant mixes, or specific-use characteristics may not meet conventional underwriting criteria even when they represent sound investments. Our commercial lending evaluates the property's inherent value and income potential rather than applying rigid occupancy or tenant requirements.
Complex ownership structures and sophisticated investment entities can complicate traditional financing. Many commercial investments involve LLCs, partnerships, or trusts that conventional lenders struggle to underwrite. Our experience with commercial transactions allows us to work effectively with these structures, focusing on the asset quality and overall transaction merits.
Our Approach
Our commercial real estate lending approach emphasizes speed, certainty, and partnership throughout the transaction process. We begin with a comprehensive evaluation that considers not just the property's current condition and income, but its location within San Diego's commercial submarkets, competitive positioning, and value-add potential.
We structure commercial loans to align with your business plan and exit strategy, whether that's stabilization and refinance, resale, or long-term hold. Our terms typically include 6-36 month durations with flexible prepayment options and the ability to fund interest reserves for properties in transition. We maintain open communication channels and can adapt structures as market conditions or project needs evolve.
Our underwriting process focuses on the three Cs of commercial lending: Collateral (property value and quality), Cash flow (income potential and market rents), and Character (borrower experience and track record). This balanced approach allows us to provide financing for quality commercial assets that may not fit traditional lending parameters while maintaining prudent risk management.
Frequently Asked Questions
What types of commercial properties do you finance in San Diego?
We finance virtually all commercial property types including retail centers, office buildings, industrial warehouses, mixed-use properties, multi-family buildings with 5+ units, self-storage facilities, hospitality properties, and special-purpose commercial real estate. Each property type receives customized underwriting based on its specific income characteristics and market position.
How much can I borrow for a commercial real estate purchase?
Our commercial loans typically range from $250,000 to $10 million, though larger transactions can be accommodated on a case-by-case basis. We generally lend up to 65-70% of the property value for stabilized commercial assets, and up to 75% of project cost for value-add opportunities. The exact amount depends on property type, location, income, and your experience level.
What documentation is required for a commercial hard money loan?
While we require less documentation than traditional banks, we typically need: property information (rent roll, lease summaries, financial statements if available), purchase agreement, your business plan or exit strategy, and basic entity documentation. Unlike conventional lenders, we don't require extensive personal financial statements or tax returns for most commercial loans.
Can I use a commercial hard money loan for a property that needs significant renovation?
Yes, commercial renovation and value-add projects are a specialty. We can structure loans that provide both acquisition funding and renovation capital, with draws released as work is completed. This structure is ideal for properties needing tenant improvements, repositioning, or substantial upgrades to achieve market rents.
What is the typical timeline from application to closing on a commercial loan?
Our commercial loan process typically takes 2-3 weeks from initial application to closing, compared to 60-90 days for traditional bank financing. Simple transactions with clear title can close faster, while more complex properties or unique situations may require additional time for proper due diligence.