Commercial Bridge Loans

Commercial Bridge Loans

Commercial bridge loans are used to finance commercial property by saavy investors as part of their investment strategy. Many commercial borrowers have found it increasingly difficult to obtain financing quickly in order to fund profitable deals on time. Banks and other traditional lending institutions have a document intensive process that can take months for approval and even longer to fund. Investors, especially those that fix and flip property usually have to purchase a property within a short time frame as part of the purchase agreement and may have the penalty of losing the property and their deposit if they cannot close as per the purchase agreement.

In addition the traditional lending institutions require that the property be in “usuable state” which may not be the case.

commercial bridge loans

Commercial bridge loans fill the gap. These loans are used to close the deal and then usually refinance by the permanent financing a few months later. This turns into a win win situation for the investor!

Commercial bridge loans are usually offered by hard money lenders and thus have flexible qualification requirements. Even though these loans can have high interest rates and fees in the long term it works out for investors when they make their profit on the sale of the property or when the property gets rented.

Our investor clients have told us that this strategy makes good business sense and that is why they use it!

We have financed the following property types with bridge loans:

  • multi-unit apartment buildings
  • mixed use developments
  • hotels
  • medical buildings
  • shopping centers
  • office buildings

and other non-owner occupied investment and commercial property. For more information on commercial bridge loans please contact us.

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