Mortgage rates have reshaped the California real estate market, leaving many buyers and homeowners unsure of their next move. Traditional banks have tightened guidelines, timelines feel slower than ever, and opportunities can disappear in days. In moments like this, understanding alternative financing options isn’t just helpful, it’s essential.
On a recent episode of the Ask the Expert Show on W4CY Radio and Talk TV, mortgage specialist Pouyan Broukhim of PB Financial Group joined hosts Steve O and Sophia to break down what hard money loans really are, when they make sense, and how borrowers can use them strategically without putting themselves at risk.
With over 17 years of lending experience across California, Broukhim shares real-world insight into bridge loans, second mortgages, private lending, and how borrowers can compete in a fast-moving market, even when conventional financing falls short.
Pouyan Broukhim is the owner of PB Financial Group Corporation and has been in the mortgage business for 17 years. His firm handles a mix of lending needs across California, including first and second mortgages, private hard money financing, and non-QM loans.
He described the current market as turbulent, mostly because rate changes have shifted what borrowers can qualify for and how quickly deals need to move. Even so, the demand is there. Many people who stayed on the sidelines now want to buy, refinance, or make a change as soon as conditions loosen.
What’s happening with rates, and why borrowers are coming back
Rate direction is still a big question for homeowners and buyers. Broukhim said expectations at the time of the interview pointed to a quarter to half percent rate reduction in September, which could ease pressure on borrowers. After that, the path depends on factors like inflation data and housing conditions.
Even small changes matter because the jump from the low-rate era to today’s higher rates created a shock. People got used to hearing about 2 to 3 percent mortgages, then suddenly faced rates closer to 7 percent. That shift made many homeowners hesitate, especially when refinancing would mean replacing a great existing rate.
Still, life doesn’t pause. People relocate for work, families change size, and investors keep hunting for opportunities. Real estate continues to move, even when the market feels uncomfortable.
Hard money loans explained
A hard money loan is private financing that can bridge the gap between what a borrower needs and what a conventional lender will approve, especially when time matters or guidelines are tight. Broukhim emphasized that these loans help borrowers think beyond the standard “bank box,” as long as the deal makes sense and there’s equity involved.
Here’s a simple comparison based on what the show discussed:
| Feature | Conventional loan | Hard money (private) |
| Typical decision speed | 3 to 10 days to get qualified | Often within 24 hours |
| Funding approach | Uses outside underwriting and guidelines | Decision made internally with private capital |
| Cost | Usually lower | Usually higher |
| Flexibility | Tighter parameters | More discretion based on scenario |
| Common fit | Traditional purchases and refis | Fast closings, bridge needs, equity-based solutions |
The takeaway: hard money often costs more, but speed and flexibility can matter more than rate in certain situations.
Who hard money tends to help (and why it’s not “free money”)
Broukhim shared several borrower scenarios that show why people choose private lending:
Bridge situations come up when someone wants to move from one home to another without rushing a long-term mortgage. For example, a homeowner with significant equity may want short-term financing to buy the next property, then sell their current home afterward.
Second mortgages are also in demand. Many homeowners have a strong first mortgage at a low rate. They want to tap equity without refinancing the entire loan into a much higher rate. In those cases, a second mortgage can preserve the first loan while still providing cash for a business opportunity, an investment property, or other goals.
Hard money can also help buyers compete when sellers favor speed. If a buyer can’t wait 30 to 45 days for a conventional closing, fast private financing can help them act more like a cash buyer.
Hard money still requires equity, and a responsible lender won’t approve a deal that puts the borrower on a path to losing their property.
The biggest mistakes first-time buyers make before they shop
One of the most useful moments from the show came from a listener’s question about shopping rates. Broukhim’s answer was direct: get qualified before you start looking seriously.
House hunting gets emotional fast, especially for families. When buyers fall in love with a home and only then learn they can’t qualify, the disappointment is sharp. Pre-approval helps set a clear price range and keeps the search realistic.
He also noted that buyers have had more power recently than in past years. Even so, the best position comes from knowing your numbers early, then staying within them.
He also addressed a common fear: many first-time buyers assume credit issues automatically disqualify them. His view was that fear stops people too early, because there are often programs that can fit different situations.
How PB Financial Group thinks about risk, fraud, and borrower fit
In private lending, risk starts with understanding the borrower’s goal. Pouyan Broukhim said the team listens closely to what a client is trying to achieve, then matches the term and structure to that plan. Pricing and fees center largely on loan-to-value. In simple terms, more equity usually means better options, while max leverage limits flexibility.
He also shared clear warning signs lenders watch for. High-dollar transactions can attract fraud, including wire fraud. The team also sees sensitive cases involving inherited properties and situations where elderly people may be pressured or abused. Protecting clients and avoiding harmful deals is part of the job.
On service, PB Financial Group operates across California, with a main office just east of Beverly Hills on Wilshire Boulevard, and supports remote closings when needed.
For reviews and borrower experiences, see PB Financial Group on Yelp. You can also find updates on PB Financial Group on Facebook and PB Financial Group on Instagram.
Hard money lending isn’t for every situation, but it can be a practical option when speed, flexibility, or a second mortgage strategy matters more than a bank’s standard checklist. PB Financial Group’s approach, as described on the show, centers on listening first, offering clear options, and being honest when a loan would make things worse.
For more information, contact PB Financial Group at 877-700-3703 to schedule a consultation or visit www.CalHardMoney.com for expert guidance.
