Bridge Loans in Los Angeles: Fast Commercial Financing Guide (2025)

Los Angeles is one of the most dynamic and competitive commercial real estate markets in the country. Whether you are acquiring a value-add multifamily property in Koreatown, repositioning a retail center in the San Fernando Valley, or rebuilding a wildfire-damaged asset in Pacific Palisades, speed and flexibility are everything. Traditional bank financing can take 60 to 90 days and comes with rigid underwriting requirements that disqualify transitional properties. Bridge loans solve this problem by providing fast capital, typically funding in 7 to 14 days, so you can close deals that would otherwise slip away.

At Clear House Lending, we originate bridge loans across Los Angeles County and throughout Southern California. Our programs cover acquisitions, renovations, lease-up periods, and refinances for borrowers who need to move quickly in a market that does not wait.

What Is a Bridge Loan and Why Does It Matter in Los Angeles?

A bridge loan is a short-term financing tool, usually lasting 6 to 24 months, designed to "bridge" the gap between acquiring or stabilizing a property and securing permanent financing. In Los Angeles, bridge loans are especially important because of the city's fast-moving market, high property values, and the sheer volume of transitional real estate opportunities.

LA's commercial real estate landscape includes everything from Class A multifamily towers in Downtown to aging strip malls along major corridors that are ripe for repositioning. Many of these properties do not qualify for conventional financing because they have occupancy issues, deferred maintenance, or below-market rents. Bridge lenders evaluate these deals based on the property's potential value after renovations or lease-up, not just its current condition.

Key characteristics of LA bridge loans include:

• Loan amounts: $500,000 to $50 million or more
• Interest rates: Typically 8% to 13%, depending on LTV, property type, and borrower experience
• LTV: Up to 75% of as-is value or 80% of total project cost
• Terms: 12 to 24 months with extension options
• Closing speed: 7 to 14 business days for most transactions
• Structure: Interest-only payments with no prepayment penalty in many cases

Use our commercial bridge loan calculator to estimate your monthly payments and total loan costs for any LA property.

Which Property Types Qualify for Bridge Financing in Los Angeles?

Bridge loans in Los Angeles cover a wide range of commercial property types. The diversity of LA's real estate market means that lenders see deal flow across nearly every asset class.

Multifamily and apartment buildings represent the largest share of bridge loan activity in LA. The city's chronic housing shortage and strong rental demand make value-add multifamily a proven investment strategy. Borrowers use bridge loans to acquire rent-stabilized buildings, renovate units, and increase rents to market levels. Canyon Partners Real Estate, for example, provided a $58 million senior bridge loan in 2025 for a 119-unit Class A multifamily property in Los Angeles, demonstrating the scale of institutional bridge lending activity in the market.

Retail and mixed-use properties along corridors like Melrose, Ventura Boulevard, and Pico Boulevard frequently need bridge financing for tenant transitions or renovations. Converting outdated retail into modern mixed-use developments is a growing strategy.

Office buildings in submarkets like Century City, Miracle Mile, and Burbank present opportunities for investors willing to reposition outdated space for entertainment, tech, or medical tenants. LA's entertainment industry creates unique demand for creative office space and production facilities.

Industrial and warehouse properties in areas like Vernon, the Arts District, and Commerce are increasingly targeted for last-mile logistics or creative conversions.

Hospitality assets including boutique hotels and short-term rental properties along the coast or near major tourist destinations also qualify for bridge financing.

How Do LA Bridge Loan Rates Compare to Other Markets?

Bridge loan rates in Los Angeles generally range from 8% to 13%, with most deals pricing between 9% and 11%. Several factors influence where your rate falls within this range.

Loan-to-value ratio is the primary driver. Loans at 60% LTV or below typically receive the best rates, while higher-leverage deals above 70% LTV carry premium pricing. Hard money bridge loans at high LTV ratios can reach 12% to 14% or higher.

Property type and condition also affect pricing. Stabilized multifamily properties command lower rates than vacant retail buildings or ground-up conversion projects. Properties with environmental issues, structural concerns, or title complications face higher rates.

Borrower experience matters more in bridge lending than in conventional financing. Experienced sponsors with a track record of successfully executing value-add projects in LA will receive better terms than first-time investors. However, bridge lenders place far less emphasis on credit scores and personal income than banks do, focusing instead on the equity in the property and the viability of the business plan.

Origination fees typically range from 1.5 to 3 points (1.5% to 3% of the loan amount). Some lenders charge exit fees as well, so understanding the full cost structure is critical when comparing offers.

For a detailed breakdown of bridge loan structures and costs, read our commercial bridge loan guide.

What Role Do Bridge Loans Play in Value-Add and Repositioning Projects?

Value-add investing is one of the most popular strategies in Los Angeles commercial real estate, and bridge loans are the financing engine that makes it work. The typical value-add cycle in LA follows a predictable pattern.

Acquisition: The investor identifies a property with below-market rents, deferred maintenance, or operational inefficiencies. A bridge loan funds the purchase quickly, often beating competing all-cash offers by closing in under two weeks.

Renovation: The borrower executes capital improvements such as unit upgrades, common area modernization, new amenities, or energy efficiency retrofits. Many bridge lenders will fund renovation costs in addition to the acquisition price, with draws released as work is completed.

Lease-up or stabilization: After renovations, the property is leased at higher rents. This phase typically takes 6 to 18 months depending on the property type and market conditions.

Permanent financing or sale: Once the property is stabilized with strong occupancy and cash flow, the borrower refinances into a long-term loan (conventional, CMBS, or agency) or sells the property at its improved valuation.

Bridge loans are ideal for this cycle because they provide the speed to acquire and the flexibility to execute the business plan before transitioning to permanent debt. Check your property's refinance readiness with our DSCR calculator to see if your stabilized NOI supports conventional takeout financing.

Learn more about value-add lending strategies and how they apply to Los Angeles deals.

How Are the 2025 LA Wildfires Affecting Bridge Loan Demand?

The January 2025 wildfires devastated parts of Los Angeles County, destroying over 16,000 structures and causing estimated losses between $76 billion and $131 billion. This disaster has created both challenges and opportunities in the bridge lending space.

Rebuilding and rehabilitation of fire-damaged commercial properties requires capital that traditional lenders are often unwilling to provide. Bridge loans allow property owners to begin reconstruction immediately rather than waiting months for insurance settlements to finalize or for conventional lenders to approve construction draws.

Insurance complications have intensified. Between 2020 and 2022, insurers did not renew 2.8 million homeowner policies in California, with more than half a million in Los Angeles alone. The FAIR Plan, California's insurer of last resort, saw its policy count grow by 123% over three years. For commercial properties, securing adequate insurance coverage has become more difficult and expensive, which affects both bridge loan underwriting and permanent refinancing.

Displaced tenants and businesses have increased demand for rental space in unaffected areas, creating opportunities for investors who can quickly acquire and prepare properties to absorb this demand. Bridge loans enable fast acquisition of properties that can serve displaced populations.

Property values in fire-affected zones have created unique buying opportunities for investors willing to take on rehabilitation projects. Bridge lenders who understand the LA market are willing to finance these projects based on the rebuilt value of the property rather than the current damaged condition.

If you are working on a wildfire-affected property or see an opportunity in the current market, contact our team to discuss financing options tailored to disaster recovery scenarios.

How Does Measure ULA Impact Bridge Loan Strategy in Los Angeles?

Measure ULA, often called the "mansion tax," imposes a 4% transfer tax on property sales between $5.3 million and $10.6 million, and a 5.5% tax on sales above $10.6 million within the City of Los Angeles. These thresholds were updated effective July 1, 2025. This tax has fundamentally altered deal economics for commercial real estate transactions in the city.

Sales volume has dropped significantly. Research from UCLA found that high-value property sales in LA fell by approximately 50% in the two years after Measure ULA was implemented. Properties above the $5 million threshold have been particularly affected, with commercial, industrial, and multifamily sales declining by 30% to 50%.

Bridge loan strategy must account for this tax. When planning a value-add deal in the City of Los Angeles, the transfer tax on acquisition and eventual sale can add 8% to 11% in combined transfer taxes to the total deal cost. This has several implications for bridge loan borrowers:

• Hold periods may need to be longer to justify the tax burden, pushing some borrowers toward 24-month bridge terms with extensions rather than 12-month terms.
• Refinance-and-hold strategies have become more attractive than fix-and-flip approaches. Rather than selling a stabilized property and triggering the transfer tax again, many investors now refinance into permanent debt and hold for cash flow.
• Adjacent cities gain appeal. Properties in Burbank, Glendale, Pasadena, Long Beach, and unincorporated LA County are not subject to Measure ULA, making them relatively more attractive for value-add deals.

Understanding DSCR requirements is essential when planning a refinance exit strategy. Review our guide on DSCR loan requirements to prepare for the permanent financing phase.

What LA-Specific Opportunities Work Best With Bridge Financing?

Los Angeles has several unique market dynamics that create opportunities perfectly suited for bridge loan financing.

Entertainment industry properties are a category almost unique to LA. Sound stages, post-production facilities, creative office campuses, and content creation studios require specialized spaces that often need significant buildout. Bridge loans fund the acquisition and conversion of industrial or warehouse space into entertainment-ready facilities, a strategy that has accelerated as streaming companies expand their production footprints.

ADU (Accessory Dwelling Unit) conversions have exploded in LA following state legislation that streamlined approvals. Investors acquire single-family homes or small multifamily properties with large lots, then use bridge financing to fund ADU construction. The added units increase the property's income and value, making it eligible for permanent financing at a higher loan amount. This strategy is especially popular in neighborhoods like Silver Lake, Echo Park, and Highland Park.

Transit-oriented development near Metro stations along the Purple Line extension, Crenshaw/LAX line, and other routes creates opportunities for investors to acquire underutilized properties near stations before values increase. Bridge loans provide the speed to secure these sites before competitors.

Rent-stabilized building acquisitions remain a viable strategy despite LA's strong tenant protections. Experienced operators use bridge loans to acquire RSO (Rent Stabilization Ordinance) buildings, improve common areas and vacant units, and increase rents on turnover within the legal framework.

Short-term rental conversions in tourist-heavy areas like Venice, Hollywood, and Santa Monica (where permitted by local regulations) represent another bridge loan use case, with investors acquiring and renovating properties for the vacation rental market.

What Does the Bridge Loan Process Look Like for an LA Deal?

The bridge loan process for Los Angeles commercial properties typically follows these steps, and moves much faster than conventional financing.

Day 1 to 3 - Application and preliminary review: Submit your loan request with basic property information, purchase price, renovation budget, and exit strategy. Most bridge lenders can provide a preliminary term sheet within 24 to 48 hours.

Day 3 to 5 - Due diligence initiated: The lender orders a property appraisal (or uses a broker price opinion for speed), reviews title, and evaluates the borrower's experience and financial capacity. For hard money bridge loans, this process focuses primarily on the property's equity position.

Day 5 to 10 - Underwriting and approval: The lender's credit committee reviews the deal and issues a formal commitment letter. For experienced borrowers with clean deals, some lenders can approve within 3 to 5 days.

Day 10 to 14 - Closing: Once all conditions are satisfied, the loan closes and funds. Many LA bridge lenders can fund through local title companies for faster execution.

For borrowers who need even faster closings, some bridge lenders offer "table funding" programs where they can close in as few as 5 to 7 business days if the property appraisal can be expedited.

What Are the Key Submarkets for Bridge Lending in Los Angeles?

Los Angeles County encompasses dozens of distinct submarkets, each with different dynamics for bridge loan borrowers.

Downtown Los Angeles (DTLA) has seen significant transformation over the past decade, with adaptive reuse projects converting historic office buildings into loft apartments, hotels, and mixed-use developments. Bridge loans fuel many of these conversions. The area continues to attract investment despite challenges with street-level conditions in some blocks.

Westside markets including Santa Monica, Beverly Hills, West Hollywood, and Culver City command premium rents and valuations. Bridge loan amounts in these areas tend to be larger, but the strong fundamentals support aggressive renovation budgets and faster lease-up timelines.

San Fernando Valley offers relatively more affordable entry points for value-add investors. Multifamily properties in Sherman Oaks, Van Nuys, North Hollywood, and Encino present opportunities for unit renovations and rent increases. The Valley also has significant industrial inventory being converted to creative and logistics uses.

South LA and Mid-City neighborhoods including Inglewood, Crenshaw, and Leimert Park are experiencing revitalization driven by the SoFi Stadium complex, Metro expansion, and broader demographic trends. Bridge loans enable investors to participate in this growth before permanent financing becomes available.

Eastside markets such as Eagle Rock, Highland Park, and Boyle Heights have strong demand from younger renters and small businesses, creating opportunities for mixed-use and small multifamily value-add projects.

South Bay cities including Torrance, Redondo Beach, and El Segundo have robust industrial and office markets driven by aerospace, tech, and logistics tenants.

For a complete overview of our lending activity across the region, visit our Los Angeles commercial loans page.

What Should You Watch Out for When Getting a Bridge Loan in LA?

Bridge loans are powerful tools, but LA borrowers should be aware of several pitfalls.

Underestimating renovation costs and timelines is the most common mistake. LA's permitting process can add weeks or months to construction timelines, and contractor costs are among the highest in the nation. Build a 15% to 20% contingency into every renovation budget.

Ignoring the exit strategy can be fatal. Every bridge loan needs a clear path to repayment, whether through a sale, refinance, or recapitalization. Before taking on bridge debt, confirm that the property's stabilized value and cash flow will support your planned exit.

Overlooking Measure ULA on transactions within the City of Los Angeles can destroy deal economics. Always factor the transfer tax into your acquisition and disposition analysis.

Insurance challenges in wildfire-prone areas and throughout the broader LA market can delay closings and increase carrying costs. Begin the insurance process early and work with brokers who specialize in commercial property coverage in California.

Prepayment penalties and extension fees vary widely among bridge lenders. Some loans carry yield maintenance or minimum interest provisions. Others charge 0.5% to 1% for each extension period. Understand these costs before signing.

Ready to discuss your Los Angeles bridge loan scenario? Reach out to Clear House Lending for a no-obligation consultation and term sheet within 24 hours.

What Are the Most Common Questions About Bridge Loans in Los Angeles?

How fast can I close a bridge loan in Los Angeles?

Most bridge loans in LA close within 7 to 14 business days. For experienced borrowers with straightforward deals and available appraisals, some lenders can close in as few as 5 business days. The speed depends on factors like title clarity, property condition, and how quickly the borrower provides required documentation.

What credit score do I need for an LA bridge loan?

Bridge lenders in Los Angeles focus primarily on the property's equity and the viability of the business plan rather than the borrower's credit score. While most lenders prefer a minimum credit score of 620 to 650, borrowers with lower scores can still qualify if the deal has strong fundamentals, such as low LTV and a clear exit strategy. This makes bridge loans accessible to investors who may not qualify for conventional bank financing.

Can I use a bridge loan for a wildfire-damaged property in LA?

Yes. Several bridge lenders in the Los Angeles market will finance the acquisition or rehabilitation of wildfire-damaged properties. These loans are typically underwritten based on the property's estimated rebuilt or repaired value rather than its current damaged condition. Insurance proceeds can often be assigned to the lender as additional collateral, and some programs allow insurance settlement advances to count toward the borrower's equity contribution.

How does Measure ULA affect my bridge loan exit strategy?

Measure ULA imposes a 4% tax on sales between $5.3 million and $10.6 million, and 5.5% on sales above $10.6 million within the City of Los Angeles. If your exit plan involves selling the property, you must account for this tax in your profit projections. Many investors are shifting to refinance-and-hold strategies to avoid triggering the tax twice (once on acquisition and again on sale). Properties in adjacent cities like Burbank, Glendale, and Pasadena are not subject to Measure ULA.

What is the minimum down payment for a bridge loan in Los Angeles?

Most bridge lenders require a minimum of 20% to 30% equity, corresponding to a maximum LTV of 70% to 80%. The exact requirement depends on the property type, condition, location, and the borrower's experience. For value-add deals, lenders may also finance a portion of the renovation costs, effectively reducing the out-of-pocket equity needed at closing.

Are bridge loans available for mixed-use properties in LA?

Absolutely. Mixed-use properties are common throughout Los Angeles, and bridge lenders regularly finance buildings that combine retail, office, and residential uses. The key underwriting consideration is the property's overall income potential after renovations and lease-up. Mixed-use properties along major commercial corridors in LA often present strong value-add opportunities because they can attract both residential tenants and ground-floor retail or restaurant operators.

Ready to Get Started With a Bridge Loan in Los Angeles?

The Los Angeles commercial real estate market rewards investors who can move quickly and execute efficiently. Whether you are pursuing a value-add multifamily acquisition, repositioning a retail property, converting space for the entertainment industry, or rebuilding after the 2025 wildfires, a bridge loan gives you the speed and flexibility to capitalize on opportunities that traditional financing cannot support.

Clear House Lending works with borrowers across Los Angeles County and Southern California, providing bridge loan programs from $500,000 to $50 million with closings in as few as 7 days. Our team understands the local market, including Measure ULA implications, insurance challenges, and submarket-specific dynamics.

Contact us today to discuss your deal, get a preliminary term sheet, and find out how we can help you close faster in Los Angeles.