Commercial Property Loans in San Francisco

How Commercial Hard Money Works in San Francisco

Asset-based lending is the core idea behind these loans. The lender focuses on the building's value, condition, and income potential. Credit and personal income documents often carry less weight than they do at a bank, though lenders still ask questions about your experience and your plan.

Speed is the main reason investors choose this route. San Francisco is one of the most competitive and expensive markets in the country, and sellers often favor buyers who can close quickly. Some lenders advertise closings in days or a couple of weeks, compared with roughly 45 days at many banks. Actual timing depends on the lender, the property, title, and how fast documents come in.

Typical terms are short. Short-term generally means under three years. Market rates for private commercial money often start near 10%, and lender fees often start around 1.5 points. Maximum loan to value commonly sits near 70%, though some programs go higher on certain deals. These are market ranges, not quotes, and each lender sets its own pricing.

San Francisco buildings come with local factors that shape a loan. Older mixed-use and multifamily buildings may face soft-story seismic retrofit requirements. Permit and planning timelines run through the city, and they can affect how long you need the loan. Rent control and just-cause eviction rules can change how a lender views a building with existing tenants. Transfer taxes also affect your purchase costs.

A clear exit strategy helps every application. Most investors plan to refinance into longer-term financing once the building is stabilized, or to sell after repositioning. Lenders want to see that path before they commit.