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Commercial Real Estate Bridge Loans

Quick Closings, Wholesale Rates, Small Balance Programs and Non-Recourse Available

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2) Receive your options within 48 hours

3) Choose what funding works best for you

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What Is a Commercial Real Estate Bridge Loan?

A Commercial Real Estate Bridge Loan is a short term loan used to gap capital needs while permanent financing is secured or the asset is liquidated. Investors and Developers use bridge loans for many different reasons including quick closings which permanent financing cannot meet, renovations, down payments, taxes, etc… They are usually higher in cost because the loan is primarialy based on the asset not the borrower which is a higher risk loan.

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PLEASE DIRECT BORROWERS ONLY!
WE DO NOT CO-OP WITH BROKERS

How a Commercial Real Estate Bridge Loan Works?

Unlike permanent financing, where loans are funded based on the loan-to-value (LTV) ratio, commercial bridge loans are often based on the loan-to-cost (LTC) ratio or after-repair value (ARV). Lenders will consider a property’s current condition, renovation plans, and market conditions before approving or rejecting a project.

Because these loans are based on a property’s future value, they carry more risk to the lender than permanent financing. Pricing will be determined based on the level of risk involved, with higher-risk projects carrying a higher interest rate. Because conditions can vary widely with commercial bridge loans, terms will also vary considerably based on the factors listed above.

A commercial bridge loan can allow a borrower to purchase a commercial property at a steep discount due to the property’s poor condition or the market conditions surrounding the property.

Lenders will assign a TC for the renovated property, including the purchase price and the cost of the needed improvements. This will likely be the limit to which the customer can borrow. In most cases, the borrower will be limited to 80% of the LTC value for the commercial bridge loan.

The renovated property can then be sold for a higher value, allowing the borrower to pay off the bridge loan and make a profit on the project.

There are other ways to use a commercial bridge loan:

  • When a borrower cannot qualify for permanent financing. The temporary financing can be used to resolve credit issues that allow the borrower to eventually qualify for permanent financing at the end of the project.
  • When a borrower has a limited time window for purchasing a property the ability to secure financing quickly. Permanent financing often requires the project to be finished before the loan is closed.
  • When a borrower wishes to purchase and develop raw land, demolish existing structures and rebuild, or to purchase, renovate and sell existing properties.

 

FAQs Commercial Real Estate Bridge Loan

While documentation varies for each project, the following list of documents may be required by the borrower at the time of application:

  • Personal and business tax reports
  • Personal resume
  • Income and expense statements from previous property owner
  • Rent rolls 
  • Schedule of leases
  • Executive summary or action plan
  • Breakdown of renovation costs and project schedule
  • Exit strategy (sale or refinance)
  • Broker’s letter of value or appraisal with comparable sales or rentals

Here is a short list of items that are considered when applying for a commercial real estate bridge loan:

Debt Service Coverage Ratio
Experience
Net Worth
Cash Reserve
Credit

  1. If title work is completed and only due diligence and funding papers need to be signed we can close in less than 5 days. A typical commercial real estate bridge loan will take less than 30 days from application to close.

RESIDENTIAL INVESTOR &
MULTI-FAMILY HOUSING FINANCING

Purchase and Cash-Out Home Refinance Loans.

Quick closings.

No limit on properties owned, and no tax returns

Legal entities financed – LLC, LLP, Trusts, and more.

Excellent delivery time and substantial cost savings!

Let us help you structure a loan that meets your needs. We work with

SINGLE-FAMILY RESIDENCES

APARTMENT BUILDINGS

STUDENT HOUSING

MOBILE HOME PARKS

SENIOR HOUSING

OTHER MULTI-FAMILY PROJECTS

Our team of experienced loan officers can help you create a program that meets your commercial financing goals! We handle bridge loans, interim financing, and programs for small and medium sized businesses. We finance a variety of commercial properties, including:

SINGLE-FAMILY RESIDENCES

APARTMENT BUILDINGS

STUDENT HOUSING

MOBILE HOME PARKS

OTHER MULTI-FAMILY PROJECTS

Purchase, refinance and construction/remodeling programs are available.