In this episode of Private Lending Insights, I interviewed Shafiq Taymuree from Stonecrest Financial, a California-based private lending firm with nearly $300 million in annual loan originations. We talked about Stonecrest’s unique lending programs, including consumer bridge loans that allow homeowners to buy a new property before selling their existing home, as well as a revolving line of credit program used by real estate investors and business owners. The conversation also covers specific guidelines for the 2 programs, California lending trends, and the company’s capital model that has supported their private lending operations for decades.
Interview Summary
In this episode of Private Lending Insights, Rocky Butani interviews Shafiq Taymuree from Stonecrest Financial, a California-based private lending firm that has funded nearly $300 million in loans over the past year. The conversation explores Stonecrest’s lending platform, the types of loan products the company offers, and the trends shaping private lending activity across California.
Stonecrest Financial operates a diversified lending platform that includes consumer bridge loans, investment property loans, and a unique revolving line of credit product used by real estate investors and business owners. The firm currently lends exclusively in California and has built its reputation over decades through a disciplined underwriting approach and a long-standing private lending fund structure.
During the discussion, Shafiq shares insights into Stonecrest’s loan programs, how borrowers use them in practice, and why certain products have become especially popular in the current lending environment.
Stonecrest Financial’s Lending Activity
Stonecrest has experienced steady growth in loan volume in recent years, funding approximately 200 loans totaling close to $300 million over the last 12 months. We verified these numbers using 2 private lending data providers: Forecasa and Elementix.
While lending activity slowed temporarily during parts of the year as borrowers waited to see how interest rates would move, activity rebounded toward the end of the year as rates stabilized and buyers regained confidence in the market. Key observations from the past year include:
- Roughly 200 loans funded in the previous 12 months
- Nearly $300 million in total loan originations
- Temporary slowdown during periods of interest rate uncertainty
- Strong rebound in purchase activity toward the end of the year
- Higher than normal December purchase volume compared to prior years
According to Shafiq, many borrowers had temporarily stepped to the sidelines while waiting for clarity on interest rates. Once rates moved lower again, buyer activity resumed and loan demand returned quickly.
Unique Loan Programs for California Property Owners
Stonecrest Financial offers several lending programs, but two products represent the majority of the company’s lending activity.
- Primary residence bridge loans
- Real estate secured revolving lines of credit (for business purpose only)
These products serve very different borrower needs, but together they represent the core of Stonecrest’s loan portfolio.
Primary Residence Bridge Loans for Homebuyers
One of Stonecrest’s most distinctive loan programs is its consumer bridge loan designed for homeowners who want to purchase a new property before selling their current home.
This product is particularly common in California’s competitive housing markets where contingent purchase offers are often rejected by sellers. The bridge loan allows buyers to access equity in their existing home and complete the purchase of a new property without waiting for their current home to sell. Key characteristics of the primary residence bridge loan include:
- Financing up to 100% of the purchase price in certain scenarios
- Maximum loan amounts generally up to $5 million
- Combined loan-to-value typically capped around 65%
- Terms usually between 6 and 11 months
- Interest rates around 9.95% at the time of this interview
- Origination fees generally between 2 and 2.5 points
The loan is secured by both the departing residence and the newly purchased property, creating cross-collateralized security that allows borrowers to access equity in their existing home.
These loans typically perform very well because the exit strategy is straightforward: the borrower sells their existing home and repays the bridge loan.
Why These Loans Exist in California
Bridge loans for primary residences are relatively rare in most states due to federal lending regulations and underwriting restrictions. However, California law includes exemptions that allow short-term bridge loans under specific conditions. As long as the loan term remains under 12 months and is tied to a legitimate property transition, lenders can structure these loans in a way that complies with regulatory requirements.
This structure allows private lenders like Stonecrest to fill an important niche in California’s real estate market.
Low Default Rates on Consumer Bridge Loans
One of the most notable aspects of Stonecrest’s bridge loan program is its strong performance history. According to Shafiq, the company has experienced virtually no defaults within its consumer bridge loan portfolio. This is largely due to careful underwriting focused on the borrower’s exit strategy. When evaluating these loans, Stonecrest looks closely at:
- The expected sale price of the departing property
- The time required to sell the home
- The borrower’s liquidity and financial resources
- Potential downside scenarios if the home sells below expectations
If the lender believes the borrower may struggle to exit the loan successfully, the deal will typically not move forward.
The Stonecrest Line of Credit Product
The second major product offered by Stonecrest Financial is its revolving line of credit program secured by real estate. This product functions similarly to a business line of credit but is secured by real estate assets owned by the borrower. The credit line can be used by real estate investors, entrepreneurs, or business owners who need flexible access to capital. Key features of the line of credit program include:
- Credit limits up to $5 million, with exceptions up to $10 million
- Loan terms ranging from one to three years
- Interest-only payments on funds actually drawn
- No interest charged on unused credit
- Flexible draw and repayment structure
- Ability to secure the line with multiple properties
Borrowers often use this product to finance real estate acquisitions, fund construction projects, manage business cash flow, or cover short-term capital needs.
How Real Estate Investors Use the Line of Credit
Real estate investors often use Stonecrest’s line of credit to move quickly on acquisitions without needing to secure financing for each individual property. For example, an investor may establish a line of credit secured by several properties in their portfolio. When a new opportunity appears, they can immediately draw funds from the credit line and make an all-cash purchase. Common use cases include:
- Purchasing investment properties quickly
- Funding construction or renovation projects
- Providing capital for business operations
- Bridging financing until permanent loans are secured
- Competing with cash buyers in competitive markets
Because borrowers only pay interest on the portion of the line that is actually used, the structure can be significantly more efficient than traditional loans.
Property Types and Collateral
Stonecrest’s line of credit program can be secured by a wide range of real estate assets. Examples include:
- Single-family rental properties
- Apartment buildings
- Commercial buildings
- Industrial properties
- Mixed-use assets
- Owner-occupied commercial real estate
However, the company generally avoids land loans and projects that depend heavily on future development value rather than current property value. Special-purpose properties may also receive additional scrutiny due to their limited resale market.
Geographic Lending Focus
Stonecrest currently lends exclusively within California. The company focuses primarily on major metropolitan markets where real estate liquidity and transaction volume are strongest. Active markets include:
- San Francisco Bay Area
- Los Angeles & Orange County
- San Diego County
- Inland Empire (Riverside & San Bernardino Counties)
- Greater Sacramento
- Central Valley
While the company will consider deals throughout the state, underwriting standards become more conservative in rural or tertiary markets where resale liquidity may be lower.
Stonecrest’s Capital Structure
One reason Stonecrest can offer products like revolving lines of credit is its capital structure. The company operates through a private lending fund that currently manages approximately $300 million in capital. This structure allows Stonecrest to maintain consistent funding capacity while supporting more complex lending products. Key elements of the platform include:
- A private lending fund established in 2004
- Approximately $300 million in current assets
- A team of more than 40 employees
- Dedicated accounting and servicing infrastructure
- A strong focus on long-term investor relationships
Shafiq explains that maintaining disciplined fund management and strong liquidity controls is essential when offering products like revolving credit lines that require rapid access to capital.
Stonecrest Financial has roots dating back to 1986, originally operating through traditional mortgage brokerage and individual private investors. The company transitioned to a fund structure in 2004, which allowed it to scale operations and support more sophisticated lending programs. Notably, the firm navigated the 2008 financial crisis without losses to investor principal, which helped build credibility and long-term investor trust.
Shafiq is also actively involved with the California Mortgage Association (CMA), an industry organization that advocates for private lending professionals across the state. CMA plays a critical role in monitoring regulatory changes, educating lenders, and advocating for policies that support responsible private lending. According to Shafiq, participation in industry organizations like CMA is essential for lenders operating in highly regulated markets such as California.
Final Takeaways
This episode provides a detailed look at how a long-standing private lending platform operates within one of the most complex real estate markets in the United States. Key takeaways from the conversation include:
- Stonecrest Financial funded nearly $300 million in loans over the past year
- Consumer bridge loans allow California homeowners to buy before selling
- Revolving real estate lines of credit provide flexible capital for investors
- Strong underwriting focused on exit strategy helps minimize defaults
- The firm’s private lending fund structure enables more sophisticated lending products
- California’s regulatory environment creates both challenges and opportunities for private lenders
For real estate investors, private lenders, and industry professionals, the episode offers valuable insight into how experienced lenders structure deals, manage risk, and create flexible financing solutions in today’s market.
Visit Stonecrest Financial‘s profile, and contact them directly. They pay us a monthly fee, so there is no cost to reach out to them through our platform.
