Bay Sierra Financial

About Bay Sierra Financial

Bay Sierra Financial is a private lender headquartered in Santa Rosa, CA providing funding throughout California. They provide hard money loans for commercial properties, bridge loans, private refinancing, and fix-and-flip hard money loans. They offer loans on all of the following types of properties: single family homes, multi family, apartments, office units, retail storefronts, mixed use spaces, industrial facilities, and raw land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial, Land

Areas Served: CA

Licenses: Cal Bre License #1280711, NMLS #341564

Lending Guidelines for Bay Sierra Financial

Below are the general loan guidelines published on the Bay Sierra Financial website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Bay Sierra Financial.

Loan Example 1

Florence finds a property in Los Angeles, CA to rehab and re-sell. Since she doesn't have enough cash to acquire the $180,000 property outright, she takes out a fix and flip loan from Bay Sierra Financial. The loan-to-value (LTV) on the note is 70%. This means that Florence will need to bring 30% of the sales price to the closing and the principle will be $126,000 on the note. The note is interest-only, with monthly payments, and is for 12 months at 12% interest with 2 origination points to be paid at closing.

By the terms of the loan, Florence will need to contribute a $2,520 origination fee in addition to 30% of the sales price, or $54,000, based on the 70% LTV. she must then pay $1,260 per month to Bay Sierra Financial. If Florence achieves her goal of a $216,000 sales price when the loan expires, she would collect a gross profit of $18,360 after re-paying the principle on the note and subtracting the cash she contributed at closing, the origination fee, and the monthly interest payments.

Loan Example 2

Bay Sierra Financial issues a hard money loan to Leslie for a renovation project in Los Angeles, CA. The loan dictates the following:

a) A $250,000 purchase price, b) a 70% loan-to-value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 2% origination fee.

Assuming a $312,500 sales price after the 6 month term, the numbers for this deal would look like this:

$312,500 sales price
- $175,000 principle (70% LTV)
- $75,000 cash paid at closing (30% on 70% LTV)
- $3,500 origination points (2% of the $175,000 principle)
- $10,500 interest payments (6 months x 12% interest)
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= $48,500 total profit (doesn't include taxes or renovation costs)

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