Security Financial Services | Private Lending in Northern California

In the 6th episode of the Private Lending Insights Podcast, I interviewed Marc Rouda and Alexis Rouda from Security Financial Services to learn all about private lending in Northern California. We talked about their loan program, Bay Area private money trends, tenants in common deals in San Francisco and more. Watch the video, listen to the audio, or read the summary below.

Summary of Podcast Episode 5: Private Lending in Northern California with Security Financial Services

Guest Speakers:
Marc Rouda – Co-CEO at Security Financial Services
Alexis Rouda – Co-CEO at Security Financial Services

Host:
Rocky Butani – Lender Link

In this episode of Private Lending Insights, host Rocky Butani interviews Alexis and Marc Rouda from Security Financial Services, a third-generation private lending firm based in San Francisco. Founded in the 1940s, Security Financial Services specializes in bridge loans for investment properties across Northern California. The discussion covers loan programs, underwriting criteria, TIC (Tenancy in Common) financing, market trends, and insights into Bay Area real estate investment.

Key Takeaways from the Interview

Security Financial Services’ Lending Focus

• A direct portfolio lender specializing in bridge loans for income-producing properties.
• Primary lending focus: San Francisco, East Bay, Peninsula, Sacramento, and parts of Southern California.
• Loan products include bridge financing for acquisitions, cash-out refinancing, and rehab projects.
• No office or specialty property lending; focuses on residential (1-4 units), multifamily, mixed-use, industrial, and some retail properties.

Loan Programs & Lending Guidelines in January 2025

Loan Terms:

• 6 to 36 months (some exceptions for 60-month terms).
• Typical loan duration: 12 to 18 months.

Loan Amounts:

• Minimum: $150,000 (usually for cash-out refinances).
• Maximum: $4M to $4.5M per single asset (higher with cross-collateralization).

Loan-to-Value (LTV) Limits:

• Up to 75% LTV for single-family investment properties.
• 70% LTV for commercial (multifamily, mixed-use, industrial).
• 65% LTV max for cash-out refinances.Acquisition + rehab loans: Up to 75-80% of total project cost.

Interest Rates & Fees:

• Low 8% range for 6-month loans.
• High 8% to low 9% for 12-month loans.
• Around 10% for 36-month loans.
• Origination fees range from 1 to 1.25 points.
• Processing & underwriting fees start at $1,000 and go up to $3,000.

Recourse Loans:

• Personal guarantees required unless LTV is 50% or lower.

Fast Closings & In-House Underwriting:

• Typical closing time: 7-12 business days (can close in 3 days for SFR deals with all docs ready).
• In-house underwriting and direct funding allow for quick decision-making.
• Uses appraisals for loans over $1M but can close quickly using internal valuation when needed.

TIC (Tenancy in Common) Loans – A San Francisco Specialty

• TIC properties allow multiple buyers to co-own a building, but each has exclusive rights to a specific unit.
• Security Financial Services provides fractional TIC loans, meaning individual TIC units can be sold while the lender releases that portion of the loan.
• Most banks do NOT offer TIC loans with partial release options, making this a unique financing solution.
• TIC financing offers an alternative to condo conversions, which are heavily restricted in San Francisco.

Bay Area Market Insights & 2024 Trends

• Multifamily sector is rebounding after a slow 12-18 months.
• Oakland real estate is undervalued, presenting an opportunity for investors.
• Tech industry growth in 2025 could boost Bay Area real estate investment.
• San Francisco’s new mayor is pro-development, which may encourage more investment.

Why Borrowers Choose Security Financial Services

• Competitive pricing (one of the lowest-cost private lenders in California).
• Long-standing reputation (third-generation, family-run lending firm).
• Flexibility with loan structuring & fast approvals.
• Deep knowledge of San Francisco TIC market & ability to offer fractional releases.
• Portfolio lender—loans are not sold off or brokered.

View Security Financial Services‘ profile and contact them directly. They pay us a monthly advertising fee to be listed on our platform.