When you’re vetting potential investments, knowing a lender’s priorities saves you time—and keeps you from chasing funds you won’t get. At Lending Bee, we believe in transparency. We want you to see exactly what makes a deal “good” in our eyes—and what red flags send us packing.
By laying out our loan criteria private lender checklist and hard money lending guidelines, we help you pre-qualify your projects, so you can focus on the deals we can fund—fast.
1. Location: California-Only Focus
What We Want:
- Properties within California’s city limits or unincorporated counties
- Markets with clear comps and reliable resale or rent data
What We Pass On:
- Deals outside California (including nearby states)
- Remote or speculative zones lacking recent sales
Why it matters: Our in-house underwriting, drive-by valuations, and local market expertise only cover California. Keeping our focus tight lets us close in 5 days or less—every time.
2. Equity and Loan-to-Value (LTV)
Key Thresholds:
- Rehab Loans: Up to 70–75% of After-Repaired Value (ARV)
- Refinance or Bridge: Up to 65% of Current Value
Must-Haves:
- Minimum 25–30% borrower equity to protect both sides
- Clear valuation methodology and recent comps
Red Flags:
- Deals with LTV above our maximums
- Skinny equity cushions (under 20%)
Why it matters: Sufficient equity means you have skin in the game—and we can tolerate rehab surprises or market dips.
3. Property Type and Condition
What We Fund:
- Single-family homes
- 2–4 unit multifamily properties
- Small mixed-use or light commercial
Preferred Conditions:
- Cosmetic or moderate rehab needs (kitchens, baths, cosmetics)
- No major structural or environmental issues
What We Pass On:
- Heavy industrial, raw land, or special-purpose properties (e.g., car washes)
- Projects requiring major structural work or environmental remediation
Why it matters: We underwrite fast because we understand typical rehab scopes. Specialized builds slow us down—and you.
4. Exit Strategy and Timeline
Ideal Scenarios:
- Flip or wholesale with clear resale comps in 3–6 months
- Stabilize and refinance to conventional in 6–12 months
- Hold as a rental with solid rent-roll projections
Deal-Breakers:
- No clear exit plan or vague timelines
- Holding periods beyond 12 months without refinance strategy
Why it matters: We lend short term. If we can’t see how—and when—you’ll repay or refinance, we’ll pass. A well-defined exit is non-negotiable.
5. Borrower Experience and Structure
Preferred Profiles:
- Repeat real estate investors or experienced flippers
- Entity borrowers (LLC or S-Corp) with clean operating history
- First-time investors with strong track records in related fields
What We Pass On:
- Borrowers with little to no project experience on similar deals
- Complex ownership structures or untraceable capital sources
Why it matters: Experience reduces execution risk—and keeps our hard money lending guidelines simple. If we believe you know the ropes, we can move faster.
6. Documentation and Communication
Required Up Front:
- Signed purchase agreement or proof of ownership
- Clear rehab scope and budget (if applicable)
- Entity docs, ID, and brief project summary
Deal-Killing Gaps:
- Incomplete or delayed docs (title, permits, budgets)
- Poor communication, unanswered questions, or vague details
Why it matters: Fast closings depend on clean, complete files. If you can’t get us what we need in 24–48 hours, the deal stalls.
7. Soft Factors: Market Trends and End Use
On Our Radar:
- Neighborhoods with rising rents or sales
- Projects that support affordable housing or value-add flips
- Borrowers who add social impact or local community benefit
We Skip:
- Overbuilt or declining submarkets
- Deals that don’t align with our risk appetite or funding focus
Why it matters: Our capital is finite. We choose projects where both borrower and lender have a clear path to profit—and positive impact.
Summary of Our Hard Money Lending Guidelines
| Criteria | What We Fund | What We Pass On |
|---|---|---|
| Location | California-only | Outside CA’s metropolitan areas |
| LTV / Equity | ≤75% ARV; ≥25% equity | >75% LTV; <20% equity |
| Property Type | SFR, 2–4 units, small commercial | Land, industrial, special-purpose |
| Exit Plan | 3–12 months, clear strategy | No plan, >12 months hold |
| Borrower Experience | Proven track records, clean entities | Novices, messy ownership |
| Docs & Communication | Complete, on-time | Incomplete or delayed |
| Market Fit | Rising/rental markets | Declining or spec-heavy areas |
Ready to See if Your Deal Qualifies?
Transparency is everything. If your project ticks these boxes, you could be one click away from a quick term sheet. Fill out the form below to get our loan criteria private lender checklist—and see if your deal lines up with Lending Bee’s hard money lending guidelines. Reach out.