In Los Angeles, a $1 million bridge loan is an ordinary file. A dated house in Cheviot Hills, a fourplex in Silver Lake or a Valley property with room for ADUs can all cost more than that. What makes LA bridge lending different is the exit: rents are low relative to prices, so many large bridge loans here end in a sale rather than a high-leverage rental refinance.
In short: LendingStreet offers residential investor bridge loans in Los Angeles from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, interest-only terms and closings in as little as 10 days. Larger balances usually need a full valuation and are reviewed case by case. Exits are a sale or a refinance into a DSCR or jumbo DSCR loan, and in Los Angeles a rental refinance usually sizes at lower leverage than the bridge loan.
The most common large file is a high-value single-family home bought to renovate and sell, often in westside and central neighborhoods like Cheviot Hills, Mar Vista, Westwood, Hancock Park, Los Feliz or Silver Lake, or in the Valley in Sherman Oaks, Studio City and Encino. Another is a 2-8 unit building bought with vacancies or deferred maintenance.
Investors also use bridge money to close fast on an estate or trust sale, to pay off a maturing loan from another lender while finishing a project, or to buy a property where ADUs will be added before a refinance. Buildings of 9 or more units are commercial; see /commercial.html.
Sellers of high-value Los Angeles properties often want certainty and speed, especially in probate and trust sales. A DSCR lender needs rent and a stabilized property; a bridge lender can lend against a property that is vacant, dated or between uses.
Bridge money also helps when a property needs work before an appraiser can support its full value, such as a home with unpermitted additions that must be corrected or removed.
On these balances, expect a full appraisal. Los Angeles has many sales, but high-value homes vary a great deal by lot, view, street and condition, so give the appraiser recent nearby sales, the scope of work and plans. For 2-8 unit buildings, the appraiser will also look at rents and whether units are legal and rent-stabilized.
Lenders generally size a bridge loan on the lower of price and appraised value, and on renovation projects may also look at the after-repair value. A strong valuation does not replace a clear exit plan.
This example is illustrative and not a quote. An investor buys a dated house in a westside neighborhood for $2,850,000 through a trust sale that needs to close quickly. The bridge loan is 70% of the price, $1,995,000, interest-only, with estimated monthly interest of about $16,625. The investor puts in $855,000 of equity and pays for a $350,000 renovation in cash.
After 8 months, the investor sells for $3,700,000. Estimated interest over the hold is about $133,000, and selling costs including commissions and transfer taxes are about 6%, or $222,000. Before other costs such as insurance, property tax and permits, the profit is about $145,000. The sale is under the Measure ULA threshold, which would otherwise add a large transfer tax.
| Item | Amount |
|---|---|
| Purchase price | $2,850,000 |
| Bridge loan at 70% | $1,995,000 |
| Estimated monthly interest | $16,625 |
| Interest over 8 months | $133,000 |
| Renovation (paid in cash) | $350,000 |
| Sale price | $3,700,000 |
| Selling costs (about 6%) | $222,000 |
| Profit before other costs | $145,000 |
If you plan to keep the property, run the rental math before you close. A $3 million Los Angeles house might rent for an amount that supports a DSCR loan of only 50% to 60% of value, so you may need to pay down the bridge loan at refinance. Jumbo DSCR loans for high-value rentals are covered at /jumbo-dscr-loans-los-angeles-ca.html.
Small multifamily often refinances more easily than a single high-value house, especially once vacant units are leased at market. Rent-stabilized units with long-term tenants count at their current rent. See /bridge-to-dscr-loan-guide.html for how the handoff works.
Los Angeles County charges a documentary transfer tax, and the City of Los Angeles adds its own. Sales in the city above a threshold of about $5 million, adjusted each year, also pay the Measure ULA tax, which is large enough to change the economics of a deal. If your planned sale price is near the threshold, model both sides of it.
Other cities in the county, including Culver City, Santa Monica and Beverly Hills, have their own transfer taxes. Confirm with your escrow officer for the specific address.
Insurance can be a real hurdle. Several insurers have pulled back from California, and after the January 2025 wildfires, hillside properties can be hard to insure. Builder's risk or vacant-property coverage is needed during renovation. Start quotes before you go under contract.
Permitting through the Los Angeles Department of Building and Safety can add months, and properties in historic preservation overlay zones or hillside areas face added review. Build realistic permit time into your bridge term and reserves.
Underwriters look hard at the borrower on large LA bridge loans: past renovations of similar size, sales history, and liquidity to cover interest, renovation overruns and a slower sale. A first project of this size is possible with strong reserves and an experienced general contractor.
Send the address, price, scope of work, budget and exit plan through the form below, or call (877) 298-1001 to get a quote.
Yes. Our residential investor bridge loans range from $150,000 to $5M+, and larger balances are reviewed case by case.
Rates start from 7.99%. Pricing depends on leverage, the property, your experience and the exit.
Yes. Larger balances usually need a full valuation, and renovation projects may also be reviewed against after-repair value.
Yes, but in Los Angeles the rent often supports less leverage than the bridge loan, so plan for a possible paydown at refinance.
Sales in the City of Los Angeles above a threshold of about $5 million, adjusted yearly, pay the ULA tax. Model your sale price against it before you buy.
As little as 10 days on some files, depending on the appraisal, title and insurance.
Yes. The bridge loan can close on it, but the later DSCR refinance will count those units at their current rent.
Yes. Bridge loans are short-term and interest-only.
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