Borrowers get into bridge loans, also known as “short term loans” for expediency, thinking they will exit when they are ready.
There are lots of bridge lenders. Those lenders rely mostly on loan-to-values of 50-70% of the property’s market value. The bridge loans tend to yield 7% to 12 % annually, depending on the property’s location and the sponsor.
Now you are in the bridge deal because it was easier to qualify. The exit can always be a sale of the subject property, but if you need to refinance the bridge out, what do you do?
- Get the property leased up
- Fix the differed maintenance
- Clear up any negative credit issues
If you now want a longer term and cheaper loan, then be prepared to check all of the boxes required for a new “non-bridge” loan.
Dominion Mortgage, where I work, makes bridge loans and we take our clients out of them with better terms once they qualify.
You could email me Paul@dominifin.com
Call me 310-477-3041 ext. 134
Paul S Horvitz.
ABOUT DOMINION MORTGAGE CORPORATION
Dominion Mortgage Corporation was established in 1977 by commercial real estate financing veteran Paul Horvitz and is a “nationwide” provider of real estate loans starting at $1,000,000 and ranging up to over $30,000,000. In addition to offering financing for single-tenant, owner-occupied and most other property types, Dominion has established a reputation for being able to finance properties that other lenders shy away from, such as healthcare facilities and other unique transactions. The company offers competitive rates on most commercial real estate types, including office, industrial, hospitality, multifamily and special-purpose properties. This includes healthcare real estate loans on medical office, clinics, hospitals and most long-term care facilities, such as independent living, assisted living and skilled nursing facilities.