A Commercial Bridge Loan Can Provide Businesses The Commercial Bridge Financing They Need Until They Secure Longer Term Financing

U.S. Funding Solutions, Inc. can help your company acquire a fast hard money commercial bridge loan. Many banks are not loaning money for commercial real estate. We understand the frustrations of commercial property owners and offer shorter term, streamlined commercial loans. This commercial bridge loans are a great alternative to having to sell off assets or equity to solve a short term liquidity or other problem. Commercial bridge loans can also be in the form of a commercial mortgage refinance if need be. If you're in need of a commercial bridge loan, we would suggest you not wait. Anything can happen in this fragile economy. See below for our commercial bridge loan programs.

Commercial Bridge Loan Programs Highlights - Real Estate (Our Commercial Business Loan Programs are further down this page)

"I have had the pleasure to work with Ron Stone on a rather complicated transaction. Throughout the process, Ron proved to be exceptionally competent, understanding of the issues on hand, and very pro-active in finding solutions for said issues. I can only express my deep gratitude to him, and I consider anybody who has the chance to work with him, to be the fortunate one because it will be a successful undertaking". H. Jim Scherber, Owner & Broker, HPS Real Estate Investments, Palm Springs, California.

About Our Commercial Bridge Loans & Other Loans

While the below 3 commercial bridge loan programs are still available, we have teamed up with a commercial financing brokerage to dramatically increase the types of commercial real estate loans we can offer. With the addition of these commercial mortgages, our offerrings are far too broad to even attempt to place on this web page. Just a hint of our new programs include: Loans for Acquisition, Rate and Term Refinance, Cash Out Refinance, Construction Loans, Bridge Loans, Commercial Mortgage Refinance, Mezzanine Financing, Equity/Joint Venture and Hard Money. We also have Non-Recourse commercial loan programs. Property types include: Multi-family, Office, Retail, Hopsitality, Industrial/Flex, Self-storage, Mixed Use and Healthcare.

The key when looking for a commercial mortgage loan is to find a true expert with access to numerous lenders and programs. That way you get the very best loan for your situation, instead of submitting your package to numerous lenders in the maze of "lenders" out there, most if not all of which aren't a good fit for you causing you time, money and frustrations and at best ending up with a loan that is not the best answer for your needs much less the best rate (Some of our Commercial Loan Rates are in the 4% to 6% range). That's where we come in. We are experts at finding you the best loan available. Let us prove it. Give us a call today and Ask for Ron Stone.

1-877-655-5625

Attention: If you own a franchise location and need quick capital for adding a new location, you should check out our new sales and leaseback programs. Our Sale Leaseback programs even include construction leaseback programs.

Commercial Bridge Loan Programs (Real Estate)- $500,000 to $15,000,000 or more

We also have a small commercial bridge loan program for South Florida (excluding Dade County) See details further down this page

We represent private commercial hard money lenders, specializing in bridge loans for commercial property acquisitions and refinance. Our creative commercial bridge financing expertise enables us to close on these equity-based commercial bridge loans of $500,000 to $15,000,000 very quickly. Our Commercial Bridge Loan Programs allow commercial borrowers with assets to get the commercial bridge financing they need and fast. So, for businesses in the US, we make getting commercial bridge loans quick and easy.

 

Commercial Real Estate Bridge Program Highlights

LOAN SIZE

$500,000 to $15,000,000+

LOAN TERM

1 - 5 years
LOAN-TO-VALUE

Up to 75%

LOCATION

Throughout U.S.
INTEREST RATES

8% - 14% depending on loan type, structure, risk profile

PAYMENT

Interest only or principal amortization
DSCR

Minimum 1.2

EARLY REPAYMENT

Case-by-Case basis
CLOSING POINTS

2 - 4%

SECURITY

1st Mortgage Lien. Additional collateral on case-by-case basis

PROPERTY TYPES

Multi-family, mixed-use, office, warehouse, retail, industrial, hospitality, and special use properties considered

EXPENSE DEPOSIT

Initial Underwriting: No charge
Acceptance of Term Sheet: Third Party Expense Deposit
Acceptance of Closing Letter: Legal/Closing Expense Deposit
Unused expense deposits refundable

 

Commercial Business Bridge Loans

LOAN SIZE

$500,000 to $15,000,000+

LOAN TERM

1 - 5 years
LOAN-TO-VALUE

Up to 75%

LOCATION

Throughout U.S.
INTEREST RATES

8% - 14% depending on loan type, structure, risk profile

PAYMENT

Interest only or principal amortization
DSCR

Minimum 1.2

EARLY REPAYMENT

Case-by-Case basis
CLOSING POINTS

2 - 4%

SECURITY

Collateral on case-by-case basis
LOAN CATALYSTS

Corporate and industrial projects, trade financing, acquisitions, buy-outs, asset purchase / repurchase agreements, corporate restructuring
EXPENSE DEPOSIT

Initial Underwriting: No charge
Acceptance of Term Sheet: Third Party Expense Deposit
Acceptance of Closing Letter: Legal/Closing Expense Deposit
Unused expense deposits refundable

 

Small South Florida (Excluding Dade County) Hard Money Commercial Loans

Loan Amounts: $50,000 to $300,000

LTVs: 40% to 50% based on current values

Commercial Real Estate Only: Various types. Multi-unit apartments minimum of 5 units.

Credit: Very little emphasis is put on Credit

PrePayment Penalties: 5/4/3/2/1

 

Not only are banks not lending much on commercial real estate, since late 2006, 384 mortgage lenders (many of which had commercial lending divisions) have gone out of business. Here is the list of real estate mortgage lenders that have closed their doors. Mortgage lenders Out of Business

So just how does the process of getting a commercial bridge loan work?

The process starts with a few simple questions for us to understand the type of property, the value of the commercial property, the bridge loan amount and the customer's needs. Credit may or may not be pulled as it's not much of a factor in these bridge loans. For qualifying properties and LTVs (see above) that have a recent appraisal, the process can be quite fast. Loan commitments can happen in as little as a few hours and funding can occur in as little as 5 business days. Fees can be built right into the loan which typically goes for 1 to 3 years. Also, there are no prepayment penalties so you can pay off the loan at any time, giving you the flexibility you need when seeking longer term financing. We've had customers pay off their bridge loan in as little as 3 months. These commercial bridge loans are ideal for property owners needing to move quickly. They can help a business out of a jam when their existing loan hits the balloon date. These loans can also allow a business person the ability to take advantage of a great opportunity in buying a piece of property in a distressed situation. The key to commercial bridge financing is the speed of issuing these loans.

Interesting Commercial Bridge Financing Tips Article

Commercial Bridge Loan Seekers, Here are 5 Commercial Bridge Financing Tips You Need To Know

For many commercial property owners or buyers, the banks are pretty much ignoring their needs. And why not? They get really cheap (near zero interest rate) money from the Federal Reserve that they can buy U.S. Treasuries and pocket a nice spread with no risk.

The effect of this is a huge number of these business people are having to get a commercial bridge loan on their commercial property to tide them over a few years until commercial credit is freed up or until they sell their property. And while these loans are not cheap, they can mean the difference in hanging on to their property and losing it. However, there are some conditions for these loans or mortgages that a prospective borrower needs to be wary of. Here are 5 critical watch outs you need to be aware of.

1.Loan Prepayment penalties – A business borrower needs to try and avoid a loan with a prepayment penalty as just like with the sub prime implosion, these penalties can wreak havoc with your future refinance or sales plans. Not having a prepayment penalty gives you a lot more flexibility.
2.Commercial Loan term – Commercial borrowers need to be sure the term is long enough to get them to the next phase whether it be a refinance or sale. Too short a term can get you right back into hot water. If you avoid a prepayment penalty, there is no downside to a longer than needed term as kind of insurance.
3.Not Borrowing Enough– You need to be sure you borrow enough to cover those little (or big) surprises. Again as in number two above, it’s just good insurance particularly in these uncertain economic times.
4.Borrowing too much – Yes, I know I just warned against borrowing too little but you can easily go overboard and borrow considerably more than you need. If you’re buying or constructing a commercial building, it’s real easy to borrow enough to cover all those “bells and whistles” that are best done from future cash flow of your property or business.
5.Not Using the Best Loan Structure – A commercial bridge loan can be structured many ways. Be sure that you don’t just take the first loan structure that is presented to you by the lender. Be creative. You may want an experienced third party to help you figure what structure is best for you and your business. Remember, the lender will propose what is in their best interest. You need to counter with what is best for you and your business if different.

So there you are, five important things to be aware of when securing a commercial bridge loan. Take note of them and use them when negotiating your commercial bridge financing terms.

While many economists are focused on the unemployment numbers, residential foreclosures and the growth of the GDP, there still remains a possible near replay of the housing crash. I'm talking about the commercial real estate and commercial real estate mortgage markets.

While the factors that led to the housing crash have and continue to be front and center in the main stream media, news coverage of the commercial real estate market is receiving very little press. What many don't know is that while to a less significant degree, the commercial real estate and commercial mortgage markets (an over $6 trillion market) have gone through a very similar period, as did the residential housing market.

The similarities were 1) The commercial mortgage market was sliced and diced by Wall Street to the amount of over $700 Billion, 2) Commercial property values jumped dramatically as a result of easy mortgage loans and the resulting demand and 3) Commercial real estate loan requirements were lowered significantly (but not as much as residential home loan requirements) during the residential property boom. The main differences are 1) A lot less speculation was made in commercial properties and 2) Practically all commercial mortgage loans are shorter term loans. While less speculation, often in the form of flipping or even attempted flipping is a good thing, short term loans are a bad thing so business property owners don't have the luxury of time to wait out the market or economical ups and downs. In addition to this fact, many of the commercial banks are not making commercial real estate loans except for the really large companies and those with pristine transactions.

Luckily, there are a few private commercial lenders who are filling some of the void left after the big banks deserted this market but even so, there are a lot of anxious business owners needing a commercial mortgage refinance loan. Many, however have neither the market value and equity in the property or sufficient income for debt coverage to allow them to get a commercial mortgage. Numerous others are getting hard money commercial loans to bridge the financing gap. If as many gurus forecast, the commercial market busts anywhere near to what happened in the housing market (and early indicators, such as delinquencies reflect this), it could be a massive hit to an already delicate economy. Time will tell.

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