Commercial Bridge Loans

What Are Commercial Real Estate Bridge Loans And How Do They Work?

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Commercial real estate bridge loans – they’re quick, temporary financial lifelines within the commercial real estate world which empower you to fund your deals and get you from point A to B when time is of the essence and you absolutely positively need to close your loan quickly without the mounds of documentation, stringent requirements … Read more

Commercial Hard Money Bridge Loans: When And Why You Need Them

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Commercial hard money bridge loans, a vital niche within the commercial real estate financing realm, offer solutions when traditional loans don’t quite fit the bill to achieve your real estate investment objectives with maximum speed and efficiency. Think of them as the bridge over troubled water, a temporary fix to get you from point A … Read more

Understanding Commercial Hard Money Loans: A Comprehensive Guide

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Commercial hard money loans are a type of short-term financing often used for business purpose real estate purchase acquisition, renovation, construction or refinance. Unlike conventional loans from banks or credit unions, these commercial loans are typically provided by private commercial lenders. They’re popular among commercial real estate investors who seek quick access to funds without … Read more

How to Secure a Commercial Bridge Loan

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How to Secure a Commercial Bridge LoanThe 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…

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How to Use Commercial Bridge Loans

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Commerical Bridge LoansSecuring 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 commercial hard money loans. Bridge loans are inherently short-term, so they typically have a 6-month to 3-year time frame within which they need to be paid back.

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Finding a Good Commercial Bridge Loan – Answers to 3 Common Questions

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As a business owner, you are certainly not alone in thinking that your Company may need alternate forms of financing to help you maintain or expand your business. Many companies are in the same position while they try to obtain a loan from banks or other financial institutions.  A commercial bridge loan may be perfect … Read more

What is a Commercial Bridge Loan?

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How to Get a Commercial Bridge LoanA commercial bridge loan is a short-term loan that is used to bridge the gap between various financial expectations.  Typical transactions have an urgent time-frame to close, a very strong value proposition, and a clear-cut exit strategy within 6 to 36 months, often with 1 or 2-year extensions available for extra fees. 

In order to compensate for the higher level of risk and often extreme speed of loan execution with relatively low documentation requirements, commercial bridge loans are generally considerably more expensive than conventional loans in terms of higher interest rates and points.  As additional compensation, commercial bridge lenders also mitigate risks by having lower loan-to-value ratio requirements as well as requiring cross-collateralization in certain circumstances.

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What in the World are Commercial Bridge Loans and Why in the World Would I Ever Need One?

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What in the World are Commercial Bridge Loans & Why do I Need One?As the name implies, commercial bridge loans are short-term commercial loans collateralized by real estate that serve as a bridge for you as the borrower that gets you to your next commercial property deal.  This type of commercial real estate financing permits you to alleviate  liquidity constraints and take full advantage of time-sensitive opportunities with speed and efficiency.

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