Apartment Bridge Loan

Very often, a property does not qualify for traditional lender programs for various reasons including: vacant properties, properties with un-stabilized occupancy, properties in need of major repair or remodeling, properties that do not cash flow or are underperforming, or loans that must close with a very quick timeline. These loans are very often best served by a bridge loan. Bridge loans are short-term loans, usually at higher rates than traditional financing that allow the borrower the time and money to reposition a property in order to qualify for traditional bank loans in the future. Some of the benefits of a bridge loan include:

Locations

Nationwide

Property Types

All property types considered

Loan Amount

$1,000,000 and up

Loan Term

12 – 36 Months Interest Only

Loan to Value

Up to 75% LTV

Typical Situations

Lease-ups, Repositioning or transitional properties, Foreclosure purchases, Discounted payoffs (DPOs), Cash-out financing, Tight closing deadlines, Refinancing of maturing loans, Properties exiting bankruptcy, Partner buyouts, Hard money loans (considered on a case-by-case basis.)

DSCR

Cash flowing and non-cash flowing properties

Processing Fee & Expense Deposit

Expense deposit required to cover 3rd party reports and underwriting fees

Reserves

Tenant improvements, Leasing commissions and Capital expenditures may be escrowed

Sponsor/Borrower

Personal credit score of 675 or better

Borrowing Entity

Operating entity occupying the property or special purpose entity

Recourse

Non Recourse

Assumability

Not assumable

Prepayment

Determined on a case by case basis