Private real estate lending in California
California has historically been one of the most supply-constrained residential markets in the country, and the forces shaping it right now are more consequential than they have been in a generation. Decades of underbuilding relative to demand left Los Angeles and its surrounding communities with a structural housing deficit that no single policy shift was going to resolve quickly. What has changed is the legislative landscape. SB-9 and related pro-density legislation have opened pathways that did not exist before — lot splits, duplexes by right, reduced discretionary approval — and in neighborhoods like Sherman Oaks, Studio City and Valley Village, experienced developers are finding that the numbers genuinely work. Those who understand which municipalities are SB-9-friendly and how to structure projects accordingly are finding opportunities that others are missing.
At the same time, the January 2025 fires that destroyed large parts of Altadena and Pacific Palisades have created a rebuilding need that will define a significant portion of development activity across greater Los Angeles for years to come. Approximately 16,000 structures were lost. The path forward for affected communities is complex — insurance, permitting and community planning all factor in — but developers who approach it thoughtfully and with genuine commitment to those neighborhoods are playing an important role. We have been active in Altadena and expect to be a lender to developers in both fire zones in the years ahead. To learn more listen to our founders podcast Rebuilding LA after the fires.
As a private real estate lender in California with deep roots in the Southern California market, we understand how projects here succeed. We finance renovation, ground-up construction, infill development and construction completion for builders and real estate investors working across greater Los Angeles, the Inland Empire, Santa Barbara and beyond.
Greater Los Angeles market snapshot
SB-9 and pro-density legislation have created new pathways for lot splits, duplexes by right and infill development — regulatory variance between municipalities is significant and experienced developers who know the landscape hold a real advantage
San Fernando Valley neighborhoods — Sherman Oaks, Studio City and Valley Village — have emerged as some of the most productive SB-9 markets in Los Angeles, with lot sizes, land values and resale prices that support the economics
Unincorporated LA County communities including Altadena, La Crescenta, Ladera Heights and East Los Angeles fall under county SB-9 jurisdiction and represent active development terrain
The January 2025 fires destroyed approximately 16,000 structures in Altadena and Pacific Palisades — rebuilding activity will shape the market for years; we are already active in Altadena
Infill and value-add activity is strong across Silver Lake, Echo Park, Highland Park, West Adams and Culver City — established markets with durable buyer demand
High land values across greater LA support strong after-repair values, providing durable collateral for well-structured projects
Luxury development headwinds — impact fees and municipal costs — have shifted opportunity toward attainable housing and smaller-footprint infill
Active project markets extend beyond LA: Santa Barbara, Palm Springs, Long Beach and the Inland Empire including Fontana
Contact us for business purpose loans (BPL) in California
If you need a business purpose loan for an SB-9 lot split in Sherman Oaks, a fix and flip in Silver Lake, a multifamily rehab in Long Beach, a construction loan in Altadena or a construction completion loan in the Inland Empire or any Southern California real estate project Sage Credit can help.