We Close More Commercial Bridge Loans than Anyone!
Commercial Bridge loans are just that, interim loans to “bridge” the gap between the current situation and the exit strategy. Bridge loans typically have some cash flow but for some reason, will not qualify for conventional lending right now. You see these mostly on investment properties.
We Close More Bridge Loans than Anyone! ! Give us a call today at 866-400-8630 or 512-650-8630.
We closed a $2 million plus bridge loan on an apartment complex purchase, a very common type of bridge loan. Because the complex was only 67% occupied and needed work, it would not qualify for conventional financing. Experienced investors with good credit are beginning to gobble up these properties at great prices and with their knowledge and some work; they can often fill the property up in less than a year. Bridge loans are typically 75-80% of value/sales price, 10-12% in interest rate, 2-3 years fixed, interest only payments and points can range from 2-6. Is it cheap? No. But you cannot get a FNMA rate of 5%-6% right now. The key is, you are buying a property at $2 million, that once full, will be worth $4 Million – doubling your money. Then, a refinance to a 5% or 6% rate is easy. The result is $2 Million in profit! Yes, the rate you paid was 6% higher than normal for 1 year but that extra interest of $120K yielded them a $2 Million return. What a deal!
We Close More Commercial Bridge Loans than Anyone! ! Give us a Call Today at 866-400-8630 or 512-650-8630.