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Demand for Homes Holds Steady During Pandemic

Hard Money Lenders in Los Angeles

If you are interested in purchasing a home to fix-and-flip but have reservations about moving forward due to the COVID-19 pandemic; keep in mind that the housing sector has proven resilient during this difficult moment in history. There is no doubt that certain sectors of the economy have been walloped by the pandemic, particularly restaurants, hotels, airlines, etc. This stands in stark contrast to the demand for housing in many markets around the U.S. which continues to show strength and an appetite from consumers to purchase new or renovated homes. Hence, hard money loans in Los Angeles continue to be viable source of funding for a fix-and-flip project.

The Benefits Have Not Changed Significantly

Despite the sudden change to daily life many of us have been forced to embrace due to the pandemic, the benefits and advantages of hard money loans in Los Angeles generally remain unchanged. If you still need quick access to capital for a fast closing, cash closing, or flexible loan terms on a home rehab or new construction loan, a hard money loan continues to be a viable option. The quick funding provided through a hard money loan remains an essential alternative to the typical 45-to-60-day timeframe associated with a traditional loan obtained from a conventional bank or credit union. Furthermore, since hard money loans in Los Angeles are asset-based loans, your credit history is not the deciding factor in whether you will secure approval for your loan request.

In contrast to most conventional financial institutions constrained by onerous rules and regulations, hard money lenders continue to be flexible and can adapt their operations and lending options as needed to effectively respond to the marketplace.

Modifications In Response to the COVID-19 Pandemic

Despite the many benefits of hard money loans remaining intact, certain adjustments have been made by many hard money lenders in response to the pandemic. These adjustments were necessary to ensure equity coverage and reduce risk amid the economic uncertainty wrought on the U.S. economy by COVID-19.

When applying for a hard money loan in Los Angeles, expect to encounter some of the following modifications to the hard money lending process:

  • Varying loan costs (e.g., different interest rate and different points and fees)
  • Adjustments to qualifying loan-to-value ratio
  • Increased cash reserve minimums (cash on hand requirements may rise)

Nevertheless, as long as there are real estate investors working diligently to find and fix distressed properties, hard money loans remain a key source of capital for short-term financing to promising real estate projects.

Need a Hard Money Loan in Los Angeles? Contact PB Financial Group Today

PB Financial Group is a premier direct hard money, private money and bridge lender, who has been providing quick funding since 2006 and have funded over 2700 hard money/private money loans. Our objective is to work to satisfy your financing needs on important real estate projects throughout California in an efficient and effective manner. To schedule a consultation please contact PB Financial Group at 877.700.3707 or visit for further information.

PB Financial NMLS #357614/DRE #01522495


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