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Private Lending in California

Residential investment financing across California’s major metropolitan areas. Bridge, DSCR, fix & flip, new construction, and build-to-rent programs.

Investing in California

California is the largest housing market in the country and the most structurally undersupplied, with a shortage measured in the millions of units. Demand is anchored by the deepest employment bases in the nation: technology in the Bay Area and San Diego, entertainment, trade, and logistics in greater Los Angeles, and state government in Sacramento. Roughly 100,000 units are permitted statewide each year against far larger household formation, which keeps absorption strong across nearly every metro and price band.

The regulatory picture is more workable for investors than headlines suggest. Proposition 13 holds effective property taxes to roughly 0.75% with capped assessed-value growth, and the statewide rent cap exempts most single-family rentals and everything built in the last 15 years. State infill law (statewide ADU reform and SB 9 lot splits) has opened construction and value-add opportunities on lots that were single-unit-only a few years ago. Coastal metros price for appreciation; Sacramento, the Inland Empire, and the Central Valley carry the yield.

California Markets We Serve

We lend across California’s major metropolitan areas. If your project is in or near one of these markets, we want to hear about it.

Los Angeles Orange County San Diego Inland Empire Sacramento Bay Area Fresno Bakersfield

Available in California

Every loan program we offer is available to qualified borrowers and properties in California.

Market Snapshot

Median Home Price
$785,000
Property Tax Rate
0.75%
Population Growth
0.5% annually
Annual Permits
~100,000 (2025)
Landlord Friendly
Mixed
Top Yield Market
Central Valley

What Works in California Right Now

ADU & Small-Lot Infill in LA and San Diego

Statewide ADU law and SB 9 turned single-family lots into multi-unit sites. Investors adding one or two ADUs behind an existing SFR pick up $2,000–$3,200/month per unit in rent on land they already control, and new units carry a 15-year exemption from the state rent cap. Ground-up construction financing covers the vertical work; a DSCR refinance captures the stabilized value.

Inland Empire & Sacramento Build-to-Sell

Riverside, San Bernardino, and the Sacramento metro deliver the state’s most workable build economics: finished product in the $450K–$650K band, logistics and state-government employment bases, and a steady flow of equity migration out of the coastal metros. Builders working entitled lots can pair construction financing with quick disposition or roll into build-to-rent holds.

Coastal Value-Add Flips

The median California home is over 45 years old, and the coastal metros are full of dated stock on high-value land. Spreads of $150K+ between acquisition and ARV are common in LA, Orange County, and San Diego for operators who can execute renovations at scale. Fix & flip financing covers up to 90% of purchase and 100% of rehab within 75% LTARV.

Frequently Asked Questions

Is California landlord-friendly for rental investors?
California is tenant-protective on paper, but the rules matter less for investor product than most assume. The statewide rent cap (AB 1482, 5% plus CPI with a 10% ceiling) exempts most single-family homes and condos, and exempts any property issued a certificate of occupancy within the last 15 years. New construction and most SFR rentals, the bulk of what we finance, operate outside the cap. Evictions run through unlawful detainer court, typically 5 to 9 weeks uncontested.
What are California's property and income tax rates?
Proposition 13 caps property tax at 1% of assessed value plus local add-ons, with assessed-value growth capped at 2% per year. Effective rates average roughly 0.75%, below the national median, and carrying costs stay predictable once basis is set. State income tax is progressive with a top bracket of 13.3%.
What's driving California's construction market?
A structural housing shortage measured in the millions of units. State law has progressively opened infill: ADU reforms now produce 28,000+ permitted ADUs a year, SB 9 allows lot splits and duplexes on most single-family lots, and builder's remedy projects advance where cities miss state housing targets. Roughly 100,000 units are permitted annually against far larger demand, keeping absorption strong in nearly every metro.
What kinds of rental yields are achievable in California?
Coastal metros price for appreciation: Los Angeles and San Diego SFRs typically cap at 4 to 4.5%. Yield strategies work inland. Sacramento rentals on $500K–$550K basis run $2,500–$2,900/month; the Inland Empire, Fresno, and Bakersfield reach 5.5–6.5% caps. ADU-augmented properties in LA and San Diego can push combined yields past 6% in otherwise appreciation-priced submarkets.

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Start Your California Investment

Our team has deep experience financing residential projects across California. Reach out to discuss your next deal.

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