Types of Hard Money Loans
In order to know exactly what you’re looking for when you opt for a Hard Money Loan, it’s good to understand the different types of loans. Here, we will look at the most popular types of Hard Money Loans and what they can potentially do for you.
Hard Money Loans
Hard Money Loans are secured by real property, meaning that the borrower’s property is used as collateral. The lender knows that if repayment doesn’t happen, they can sell the collateral property and get their money back. Hard Money Loans are short-term (roughly one year on average), and they are much faster than traditional bank loans.
Bridge Loans
Bridge loans are meant for people who are trying to sell a property as well as buy a new one. It is quite literally a “bridge” in time between a property that hasn’t sold yet and a property that needs to be purchased immediately. When the property is sold, the loan is paid back in full.
Fix And Flip Loans
Hard Money Loans are very popular for investors who do fix and flip projects. Fix and flip loans are used by an investor who plans on purchasing a property, renovating it, then reselling it for a profit. The loan is repaid completely when the property is sold. This is a very popular Hard Money Loan option in the hot Los Angeles real estate market.
2023 Los Angeles Real Estate Market Forecast
(Updated 12-Sep-2023)
For ambitious investors and tenants alike, Los Angeles, CA, offers a flourishing, top-tier metro with a sizable population, surging economic growth, and plenty of commercial real estate options. In recent years, rising prices, robust demand, and low vacancy rates have characterized the Los Angeles commercial real estate market. The city is home to major industries, including finance, entertainment, and technology, which drive demand for commercial real estate.
Get in-depth commercial market reports and insights from our real estate experts in the Greater Los Angeles area. RTI Bridge Loans looks at Los Angeles commercial real estate activities and the latest statistics to provide you with expert market research on Los Angeles commercial properties.
Los Angeles Office Market Insights
» Investment Sales
The total sales volume in Q2 2023 was $968 million, signaling a decrease from previous years. Year to date, the office sales volume is 3.8 times lower than the average total sales during the first half of each subsequent year dating back to 2012.
» Availability
Los Angeles has once again set a new high for available office space. As we go into Q3 2023, Los Angeles currently has 69.7 million square feet of open office space, representing 23.2% of the office market. This continues the upward trend of availability since the pandemic.
» Leasing Volume YTD
Office leasing activity in the Los Angeles market remains modest into Q3 2023. The square footage of leases signed year to date, estimated to be around 8.7 million square feet, is around three-quarters of the average activity seen from 2015 through 2019, the five years leading up to the pandemic
The impact of economic uncertainty and the growing prevalence of remote work models has caused a slowdown in leasing activity YTD, down 29.8% from the same period in 2022.
» Rent Growth Plateaus
While Los Angeles has the highest yearly increase in asking office rents, it concluded the second quarter of 2023 with average asking rents at $43.58/sf, only 0.8% down from the previous year.
Los Angeles Industrial Market Insights
During the pandemic, industrial occupiers garnered massive warehouse space to keep up with demand, hitting a low point of only 11.5 million square feet available in Q1 2022. However, as the pandemic’s effects subside, they are returning the excess space they acquired, resulting in an enormous amount of sublet space being available for lease.
» Available Space on the Rise
Currently, 6.65 million square feet of industrial space is available for sublet in Los Angeles. The available sublet space has increased 31% from Q1 2023 and a remarkable 99% compared to the second quarter of 2022.
» Have Rents Peaked?
Industrial market rates averaged $1.73 price/sf in Q2 2023. While this is a slight dip from last quarter, the overall asking rate in LA had been on a steady growth trend for 18 consecutive quarters.
» Construction Activity Remains Hot
There are currently 7.4 million square feet of industrial space under construction, the highest in the last ten years.
» Investment Sales
The total sales volume in 2023 year-to-date is $386.78 per square foot, with a sale volume of $1.33B.
» Port Activity Declining
The port activity in Los Angeles has declined in the first half of 2023 compared to the previous year.
Los Angeles Retail Outlook 2023
The Los Angeles retail market Struggles to rebound going into Q3 2023. Despite elevated vacancy, sluggish demand, and added construction, asking rents have not decreased to boost occupancy. The brick-and-mortar retail market is dealing with an unprecedented amount of sublease office space.
» Investment Sales
Sales volume of the Los Angeles retail market for the past year totaled $4.9 billion as of Q2 2023.
» Inventory
Completed construction has added over 280K square feet, mostly vacant, to the inventory in Q1 2023, but the market is dealing with an unprecedented amount of sublease office space.
» Rent Growth Might Slow
Price appreciation for retail spaces in Los Angeles has grown at an annual rate of 3.3% over the past five years, peaking at $420 per square foot. However, the market conditions, including higher interest rates, are expected to decelerate the price appreciation.
» Vacancy
Vacant space in Los Angeles grew by 747,000 square feet to almost 19 million square feet in the second quarter of 2023. The vacancy rate has increased by 0.2% in the past year to 5.3% as of Q2 2023.
» Trends to Watch
Tenants are more selective about office space needs and pursue short-term leases to maintain flexibility. At the same time, landlords are much more receptive to tenant needs and optimize their offerings to improve occupancy and maximize revenue.
Unlock Investment Opportunities in Los Angeles with RTI Bridge Loans
Los Angeles presents a dynamic and thriving commercial real estate market with diverse opportunities for investors and tenants. The city’s robust economy, driven by major industries such as finance, entertainment, and technology, continues to fuel demand for commercial properties.
For those seeking hard money loans to seize investment opportunities in this dynamic market, RTI Bridge Loans is your key partner. Our experts specialize in providing tailored financing solutions to help you capitalize on Los Angeles’s commercial real estate potential. Whether you’re looking to invest in office, industrial, or retail properties, we have the expertise to assist you. Contact us at (562) 857-2285 or fill out our online form to request a free quote and let us help you secure the hard money loan you need to unlock the full potential of Los Angeles’s commercial real estate market.
Working with A Hard Money Lender Los Angeles – Finance Your Next Project With RTI Bridge Loans
Are you looking to buy an investment property to rent out in Los Angeles? Consider RTI Bridge Loans for your financing needs. RTI Bridge Loans is a Hard Money Lender in Los Angeles, CA, financing real estate investments for the past 15 years. Los Angeles has one of the most substantial economies in the nation, and as the second most populated city in the U.S., it is an attractive lending area for RTI Bridge Loans. Many people look for a Hard Money Lender in Los Angeles to finance their transactions.
Private Money Lenders focus more on a property’s equity rather than a borrower’s credit score, and the funding process can take as little as a few days. Over the past ten years, the cost of living in Los Angeles has increased, making homeownership very difficult. This has led to the majority of people renting, so rental properties are a great Hard Money Loan investment. Contact RTI Bridge Loans serving the greater Los Angeles area today to learn more about how working with Hard Money Lenders will be great for your business and life.
Final Thoughts – What You Need To Know About Los Angeles
California’s largest city is diverse and vibrant – a very attractive lending area for Hard Money Lenders. With a highly substantial economy, Los Angeles is booming in the rental industry. In fact, the majority of Californians rent rather than own, which makes purchasing a rental property an incredible investment right now. The best neighborhoods in Los Angeles for real estate investment include Echo Park, Venice, and West Lake. Other diverse and populated beach communities that make for great investment projects are Venice Beach, Santa Monica, and Long Beach.
Though the economy seems to change every few months, you are sure to see the population of Los Angeles continues to grow, and you should believe that growing in this city will be best for you and your business!
Contact RTI Bridge Loans in Los Angeles today and begin working on your new project immediately!
