FINANCIAL SERVICE:

BRIDGE LOANS

What is a bridge loan?

A bridge loan “bridges” the gap between the expiration of a short-term loan and permanent financing or a sale of a property. This type of financing can apply to either residential or commercial properties. Borrowers often use this type of collateral based loan to refinance and to get cash-out of the property. Bridge loans are considered very fast to close and can often be financed within 30 days- compared to banks which could take up to 6 months for large loans.

How does a bridge loan work?

Bridge loans are made to a borrower with a clear exit plan of how the borrower will pay off the loan. The plan could be as simple as they need time to get the property leased up and either sell or refinance into a long term loan. When evaluating a loan amount, the most important things (critical parameters) to borrowers are LTV (Loan to Value), time to close, certainty of close, interest rate (interest only), prepayment penalty, exit fees and recourse.

Bridge Loan Benefits:

Flexibility – you can choose from fixed or variable interest rates, and open or closed loan terms.
Speed – bridge loan funds can be ready in 24-48 hours once approved – much quicker than many term loans.
Higher limits – because a bridge loan is secured against an asset, it’s possible to borrow larger sums of money.
Higher Approval Rate – Borrowers with collateral in a large asset can be approved when credit and cash flow are not yet sufficient.
Flexibility – Use of funds can be allocated for acquisition, repairs, construction, operating expenses and have few restrictions.

What are commercial real estate bridge loans used for?

Commercial bridge loans are used by developers, real estate investors and other commercial borrowers in several different circumstances, including to:

Stabilize a multifamily property so that it’s cash flow and debt obligations will qualify it for a permanent loan.
Refinance an expiring term balloon loan.
Cash-out in order to finish a construction project that’s exhausted its financing.
Refinance an expiring term loan and carry the business for a few months until an SBA loan comes through.
Carry a subdivision development until the homes are sold.
Refinance with cash-out to make repairs in the short term.

Quick Apply

Name(Required)

First Last

Email(Required)

Phone(Required)

Corporation or Business Name

CRITICAL NEEDS (check boxes to which apply)

Time to Close

Certainty of Close

Lowest Interest Rate

Longest Term

Non Recourse

Highest LTV

Business Address(Required)

Street Address City State / Province / Region ZIP / Postal Code

Property Info

Property / Collateral Type(Required)

Property Address(Required)

Street Address City State / Province / Region ZIP / Postal Code

Requested Loan Amount(Required)

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What We Do

How does Bridgeloan.io work?

Fill out Quick Application to get pre-approved.
Bridgeloan.io will match your parameters with your critical needs to private lenders in our network.
We will contact you in person to discuss options and timelines of obtaining financing; get to know some of the backstory and verify your interest.
We will provide you with a short list of documentation and help you submit to the lenders.
We will facilitate Term Sheets / Letters of Intent.
We will discuss your options and coordinate closing with the lender.

There is a network of private money lenders that provide short term financing based on the collateral of the properties with rates comparable to banks.

These lenders have their own funds or rely on investment banks to source money to invest. All of these companies have certain parameters they prefer like: geographical location, type of asset class, loan size, loan pricing, owner experience etc. Based on your profile and your project, we will know where to place you.

BRIDGE LOANS

What are commercial real estate bridge loans used for?

Commercial bridge loans are used by developers, real estate investors and other commercial borrowers in several different circumstances, including to:

Stabilize a multifamily property so that it’s cash flow and debt obligations will qualify it for a permanent loan.
Refinance an expiring term balloon loan.
Cash-out in order to finish a construction project that’s exhausted its financing.
Refinance an expiring term loan and carry the business for a few months until an SBA loan comes through.
Carry a subdivision development until the homes are sold.
Refinance with cash-out to make repairs in the short term.