Bridge Loans
RealWebFunds helps developers, owners investors with find short term financing to
add value to a property or stabilize the property. Bridge lenders are expecting
the property to be stabilized at a higher value within one to three years. By presenting
your loan request to local, regional and national bridge lenders we are able to
find the best financing available for just about any size and shape of project.
Typical Commercial Real Estate Bridge Loan Terms
Note: These are not terms of any specific lender. They represent terms that we frequently
see in the marketplace and are not to be relied on as a commitment to provide any
specific terms for any specific deal.
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Maximum loan to cost:
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80% to 90%
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Maximum loan to value:
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70% to 80% of completed value
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Holdbacks:
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In some cases the loan will be made at the future value but a portion will be "held
back" until improvments are completed or vacancy is decreased or some other value-add
goal is met.
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Term:
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Generally 1 to 3 years with extensions as necessary
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Amortization:
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Interest only
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Typical Rates:
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Prime plus 1.5% to 3.0% or LIBOR plus 3.5% to 4.5%
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Prepayment terms:
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No prepayment penalty
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Projects:
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All commercial property types can be financed. Developer and contractor must have
experience at this type and scale of developement.
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Recourse:
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Typically recourse. a few lenders offer non-recourse construction financing for
larger loans.
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Closing costs:
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Borrowers are responsible for all due diligence and closings costs (e.g. Appraisal,
Phase 1 Environmental, site inspection, title, etc)
- Loans under $3M - costs range from $6,000 to $12,000
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For loans over $3M - costs can be $20,000 or more
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Information You Will Need For Your Application:
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