Commercial bridge loan programs to bridge the gap until a conventional commercial loan is your best option
Loans from Commercial bridge lenders can be a life saver for an investor or business person in difficult times. This is more true today than ever due to the increased commercial underwriting requirements instituted by the banks post the real estate and financial debacle in 2007 and 2008. It’s really a shame too. During the heyday of mortgage lending, if you had a pulse, you could get a loan, particularly in the residential market and to a lesser degree in the commercial real estate market.
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We have commercial bridge lenders in all 50 states including commercial real estate bridge loans for a cash out short term commercial bridge loan with qualifying LTVs and construction loans.
These commercial hard money loans, aka short term bridge loans can even help you avoid a commercial foreclosure, take advantage of a big opportunity or tap some existing equity short term for a business opportunity.
Hard Money Loan Programs Start at $500,000 and go into the millions
Unfortunately, the pendulum for commercial real estate (and other business loans) as in residential real estate loans swung from the extremely easy to the extremely difficult. Just about any blemish in an individual’s credit (often not in their making) will get a swift and decisive “No”.
Our Commercial real estate SBA alternative loans many times are a perfect alternative for people turned down by an SBA lender. So if you’ve been turned down for an SBA loan, you’ve got plenty of company. Following are some frequent SBA commercial mortgage turned down reasons that we can usually provide a good SBA alternative loan for:
Assisted Living Financing – Our assisted living loans include assisted living hard money rehab mortgage loans
Commercial Bridge Loans when in business less than 2 years – We don’t have a hard amount of time in business for our commercial loans.
Stated Income Commercial loans where no tax return is required, simply a P&L.
Commercial Financing for Low Occupancy Properties – Unlike other commercial loan programs requiring a relatively high occupancy rate requirement, we look at the big picture.
Mobile Home Park Financing loans, both purchase and refinance including cash out. Our mobile home park loan programs can have an LTV up to 70%.
Commercial hard money real estate loans where unlike the SBA, owner occupancy can be below 51%, even as low as 10%. Low owner occupancy loans are one of our specialties.
No minimum Debt service requirement (DSC) loans unlike the SBA and many commercial lenders which often have an arbitrary debt service ratio minimum.
Below 700 credit score commercial loans.
Small Commercial Loans under $1 Million. We do commercial loans down to $500K, sometimes lower.
Jumbo residential investment loans with LTVs up to 75%.
Non Owner Occupied Condo loans. A lot of lenders won’t do these. These can be residential and commercial condo loans. The commercial condo loan can be owner occupied.
Self-storage loans, purchase and refinance.
Commercial loan with a prior bankruptcy or foreclosure as long as it has been 2 years. Same for Deed in Lieu.
No proof of down payment funds commercial loans or no down payment seasoning commercial loans although we will lower the LTV amount by 5%.
Commercial rates from 6.99% to 10.99% for the above alternative SBA loans. So if you’ve been turned down for an SBA loan, give us a call. We’re here to help.
What is a Commercial Bridge Loan usually offered by hard money mortgage lenders
Bridge loans on commercial properties are simply commercial loans to bridge a gap of some kind. These “gaps” can be physical or financial. They essentially are fast loans with much less underwriting to either get a business through a bad period (avoid foreclosure, etc.) or to get a purchase done for a buyer to not miss an opportunity due to traditional long underwriting periods as well as give buyers time to stabilize a property to get it ready for a conventional commercial mortgage. Bridge mortgages carry higher interest rates and lower LTVs.
Once a customer experiences a “blip” in credit (even unrelated to their commercial loan) or pay history, most banks will ‘show them the door’ and often not giving them sufficient time to acquire a new replacement loan. If the borrower is behind on their payments, catching up rarely avoids being told to go elsewhere.
These scenarios are exactly what commercial bridge mortgage financing aka hard money lending are for. They can close quickly and provide a short term (bridge) solution for the borrower to avoid foreclosure which of course makes it next to impossible for the borrower to get a new traditional loan for years and while a commercial aka hard money bridge loan can be expensive, the alternative is dramatically worse.
Another situation where hard money bridge financing is appealing is for buyers of commercial real estate who want to seize an opportunity but the time frame for a traditional commercial bank loan (45-60 days or more if it’s an SBA loan) is to short. Rather than lose the opportunity, the buyer pays the extra financing costs to buy time since they close much faster, although traditional hard money loan rates with hard money mortgage lenders are in double-digits.
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A third situation where commercial real estate bridge financing come in handy is when a buyer needs to stabilize a commercial property physically (repairs or renovation) or financially (rent out available spaces or raise rents if they are under market) before it could qualify for traditional financing.
In summary, every prospective recipient of large commercial property bridge financing has to 1) Do the math to see if the extra cost with hard money loan rates in the short term makes sense long-term and/or 2) Look at the big picture. This type analysis takes the emotions out of the decision, which is very important for the business and business owner.
Also, you may want to read this if you’ve been turned down for a commercial bridge loan.
Our Bridge Loan Financing Programs FAQs
- Can I get a temporary bridge loan mortgage to avoid Foreclosure of my commercial property? Absolutely
- Are these type short term commercial real estate loans also called temporary commercial real estate loans? Sometimes, yes.
- Are these bridge mortgage loans also called hard money loans? Yes
- Do you do assisted living financing? Yes, we have assisted living loans including rehab assisted living loan programs.
- Is there any such thing as a low rate commercial bridge loan mortgage? Yes but very, very few. We are one of them although not every one that apply for bridge mortgage loans is approved. Every case is unique.
- So you are saying I may can get a short term loan to save my commercial property from foreclosure? Often times, yes.
- What if my commercial property is set for a foreclosure sale? Is it too late to apply? Maybe not, although you may need to file corporate bankruptcy to buy us some time.
- Can I get a bridge loan for my commercial property with poor credit? Yes, our loans are based on the asset not your personal credit.
- How long are most bridge mortgage loans? They are usually 3 year loans.
- What about geography requirements? We are nationwide so we are bridge or hard money lenders in Chicago, Las Vegas, Houston, Miami, New York, Florida etc. Also, don’t forget, we have low rate bridge financing programs too.
- What are your commercial real estate loan rates? Our commercial property financing rates vary by situation but can be as low as 5.5%.
- Do you have programs for stopping foreclosure on a commercial property? While our programs aren’t necessarily designed to stop a commercial foreclosure, we can often stop a foreclosure sale either through a corporate bankruptcy or with a little cooperation from the lender as a result of our LOI to you showing we plan on paying them off through your commercial mortgage refinancing.
- Do you do real estate development financing loans? Yes, for projects that make sense.
We also do resort financing loans that are a fit, although we don’t do golf course loans except for golf courses already built as a part of a good resort development.