WHAT DOES A COMMERCIAL BRIDGE LOAN LOOK LIKE?

 

We continually get calls & emails from lenders looking for deals to fund.  This is normal – the pulse of our business.  But in the last couple months the tempo has quickened.

 

We can arrange funding for a variety of loan types and match them to the type of product and circumstance.  Also, different type of lenders are more or less active/aggressive at any point in time depending on their circumstances and market conditions.

 

One of the loan types that has come into demand lately is a bridge loan.  They’re typically used in situations where there’s stress in the situation resulting in a bargain element in the pricing, and time is a material factor.  (Our current environment is causing a lot of this.) We have a fair amount of discussion about the terms and conditions of these loans, a lot of it dispelling mis-information floating around the market.

 

Below are criteria offered directly by one of our commercial bridge lending sources. This is what they want to fund.

 

  • LOAN SIZE: $2–$15 million
  • LIEN POSITION: 1st lien
  • LOAN-TO-VALUE (LTV): not to exceed 75%
  • TERM: 12–24 months
  • EXIT: clearly defined exit strategy.
  • LOCATION: any U.S. metropolitan market—comparable sales info will be important in the underwriting.
  • PROPERTY TYPE – OWNER-OCCUPIED: Golf Course & Other Special Use Facilities, Industrial, Office, Medical, Mixed-Use, Retail, Self-Storage.
  • INVESTMENT REAL ESTATE: Golf Courses & Marinas, Industrial, Medical, Mixed-Use, Mobile Home Parks, Multi-family, Office, Retail, Self-Storage.
  • COLLATERAL: is cash flowing, commercial real estate (DSCR > 1.0)
  • DEBT YIELD: (NOI/loan amt) greater than 8%
  • TIMING: Must close in 10 to 20 business days.

 

Why & when would you use a bridge?  What are the advantages & disadvantages?  Are bridge lenders the same as hard money lenders?  What else should I be asking?

 

For answers to these and other questions, contact us at your convenience. We offer a variety of products and services, ask us how we can assist you today.

 

We work for you, not for the lender.

 

Counsel Mortgage Group®, LLC
480-502-1000
NMLS #178927
AZ MB #0909580
Copyright © 2021 Counsel Mortgage Group®, LLC.