Business Expert
Types of Bridge Loans Available
Discover flexible financing options tailored for investors who need immediate liquidity, fast execution, and structures aligned with their goals. Below are the main categories of bridge loans we offer:
1. Income-Producing Property Loans
2. Rehab and Construction Loans
Ideal for: Investors who already own or are acquiring properties with rental income potential.
• Borrower: Special Purpose Entity (SPV)
• Personal Guarantee: Required only if DSCR is below 1.1
• Use of Funds: Fully unrestricted
• Term: 1 year, renewable up to 4 times
• Interest Rate: From 9.875% annually
• Upfront Costs: No due diligence fee, but site visits, legal, and technical costs typically range from $30,000 to $45,000
• Financing Fee: Between 4 and 7 points
• Maximum LTV (Loan-to-Value): Up to 75% of 180-day projected value
• Collateral: First mortgage + 100% of pledged shares + rental income assignment
• Interest Payments: Prepaid for the initial loan term
2. Rehab and Construction Loans
Ideal for: Renovation or ground-up construction projects needing strategic leverage.
• Borrower: Special Purpose Entity (SPV)
• Personal Guarantee: Not required from main partners
• Use of Funds: Exclusively for the secured property
• Term: From 1 to 3 years (exceptions up to 5 years)
• Interest Rate: From 9.875% annually
• Upfront Costs: No due diligence fee; legal and technical costs range from $30,000 to $45,000
• Financing Fee: Between 4 and 7 points
• Maximum LTV: Up to 70% of 180-day projected value
• Collateral: First mortgage + 100% of pledged shares + general contractor agreement
• Interest Payments: Prepaid for the initial loan term
3. Vacant Commercial Land Loans
Ideal for: Investors with land in strategic areas who need capital for development or refinancing.
• Borrower: Special Purpose Entity (SPV)
• Personal Guarantee: Not required from main partners
• Use of Funds: Unrestricted
• Term: 1 year, renewable up to 2 times
• Interest Rate: Starting at 9.875% annually
• Upfront Costs: No due diligence fee; estimated site, legal, and technical expenses between $30,000 and $45,000
• Financing Fee: Between 4 and 7 points
• Maximum LTV: Up to 60% of 180-day projected value
• Collateral: First mortgage + 100% of pledged shares
• Interest Payments: Prepaid upon signing
Key Conditions to Consider
• All scenarios require a certified appraisal by an MAI or MRICS appraiser
• The appraiser may be selected by the borrower, but must be approved in advance
• No prepayment penalties
• Interest payments are non-refundable and must be prepaid for each renewal
• The loan will always be in first lien position
• Closings typically occur within 30 to 45 days after the site visit and submission of all required documentation
