What is Bridge Funding?
A bridge loan is a type of private money loan used for short term financing.
Bridge Funding is a type of interim financing for an individual or business until permanent financing is obtained.
Bridge Loans are usually a bit more expensive than conventional financing to compensate for the additional risk.
Bridge financing typically has a term from 12 months to 5 years.
All credit types are considered.
Bad credit ok as long as there is equity in the collateral being pledged.
Real Estate Financing ($100,000 up to $5MM+)
Collateral: Commercial, Land, Multifamily & Residential properties nationwide
Security: 1st, 2nd & selective 3rd lien positions
Cross-Collateralization up to 70% Combined LTV
Minimum FMV $200,000/property
Term: 12 – 60 months (Interest Only & Custom Amortization)
No minimum FICO
$4MM Bridge Loan
A developer was seeking $4MM bridge loan as a first mortgage
to facilitate the acquisition of a prime development site in Chicago.
Developer intended to build luxury condos.
The bridge loan would be repaid once a permanent construction loan comes from his bank.
Result: Approved for $4MM bridge loan. Funded in fourteen days.
$400,000 Bridge Loan in 7 Days
A high net worth real estate developer had an investment opportunity with great upside.
However, he was not liquid and needed to act on the opportunity quickly.
Result: $400,000, 12-month, interest only bridge
loan secured by 2nd lien on a separate property owned by the borrower (8-unit apartment building).
$580,000 Bridge Loan
A home builder faced a cash shortfall to fund the
escrow account to construct a $15MM spec-home development.
Result: $580,000, 12-months with 12 month extension secured
by 2nd liens on three unrelated properties and other assets (unsecured note and gold).