The first step toward securing a commercial bridge loan is to make sure that you have a deal that’s profitable for your Company and your prospective commercial real estate lender. As a general guideline for standing (existing) property purchase financing, you should be “all-in” (purchase price + renovation/improvement costs) is somewhere south of 70% of the After Repair Value or ARV. The lower that percentage, the stronger the deal for you and your lender. In fact, since bridge loans are more expensive in terms of higher interest rates, we like our Clients to be all-in @ less than 65% of ARV just to have an extra profitability contingency cushion. That way, we’re all covered just in case…
Understanding Commercial Bridge Loans
Commercial bridge loans serve as a financial bridge, filling the gap between the need for immediate capital and securing long-term financing. They’re short-term, typically ranging from six months to a few years, and act as a temporary solution until permanent financing is available or an asset is sold. These loans are crucial for businesses in … Read more
Securing a commercial bridge loan may be just the thing for your business whether you’re in between anticipated incoming funds or you need to take the success of your company higher faster than your bank is capable of. Bridge loans usually have higher interest rates than conventional commercial real estate loans, but have lower rates than 
