A Commercial Bridge Loan Can Provide
Businesses The Commercial Bridge Financing They Need Until They
Secure Longer Term Financing
U.S. Funding Solutions, Inc.* in conjunction with
and Randolph Capital, LLC 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 financing is a great alternative to having
to sell off assets or equity to solve a short term liquidity or
other problem. It's why our loans have NO prepayment penalty and
are primarily asset based loans (Credit is rarely a factor in approving
the loan). If you're in need of a commercial bridge loan, we would
suggest you not wait. Anything can happen in this fragile economy.
Commercial
Bridge Loan Program Highlights
(Sorry,
No Brokers)
Call
7 Days A Week To Learn More
About
Our Commercial Hard Money Loan Programs!
1-877-655-5625
Commercial
Bridge Loan Program - $1,000,000 to $100,000,000
We
represent a leading private international hard money commercial
lender, specializing in bridge loans for commercial property,
raw land acquisition, development, workouts, bankruptcies and
foreclosures. Our creative commercial bridge financing expertise
enables us to close on these equity-based commercial bridge
loans of $1 million to over $100 million in as little as 5 days!
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 and for many International
locations, we make getting commercial bridge loans quick and
easy.
Fast
Turn-Around
As Little as 2 Days for Commitment (Often times within hours)
As Little as 5 Days to Close
Up to 65% LTV Ratio (Depends on the property type)
Commercial
Real Estate Bridge Loans
Commercial Real Estate Acquisition& Refinancing
Commercial Development and Construction
Bank Workouts
Bankruptcies & Foreclosures
TERMS:
Flexible loan term from 1 to 3 years.
NO PREPAYMENT PENALTY.
USE
OF BRIDGE LOAN PROCEEDS:
Loans are made for business purposes only. We don't care what
the proceeds are used for but they can be used to complete construction
or renovations
LOAN
TO VALUE:
Loan amounts can be up to 50-65% of the disposition value of
the collateral, based on the estimated cash sale price given
a 180 day marketing time. If the loan is used for renovation
or construction, the loan amount can be based on the improved
value, and would be disbursed in stages as work on the property
progresses.
RATES:
Rates vary from 12% and up per annum, interest only, depending
upon collateral and loan structure.
FEES:
In lieu of equity participation, fees of 3-10% (U.S. only) of
the loan amount may be included in the loan.
LOAN
SIZE:
From $1 Million to $100+ Million nationally. Must be at least
$5 Million
for international commercial loans.
COLLATERAL:
Real estate and other fixed or liquid assets.
Small
Balance Commercial Bridge Loans*
We
are no longer doing these small commercial bridge loans. Sorry.
Commercial
Real Estate Bridge Loans
No up front fees! Fast closings! Typical Terms: 24 months interest
only, 12% rate + 5 points
No prepayment penalty
Loan Amount: $100,000 minimum to $1,500,000 maximum
Types of Properties: Multi-family, Mixed use, Office, Retail,
Warehouse
To
help us quickly evaluate your situation, you will need to provide
:
1. Color photos of the subject property
2. Executive Summary or Submission Form
3. 1003 or Borrower’s Personal Financial Statement
4. Current Credit Report
5. Current rent roll and operating statement for subject property
(Investment Properties)
* Private Discretionary Fund in regards to the Hard
Money - Bridge Financing being offered
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. For other
questions or to find out if you qualify for these loans, give us
a call. 1-877-655-5625
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.
Is The Business Property Market The Next Big Problem For
The United States Economy
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.
* US Funding Solutions, Inc. provides marketing services for Randolf
Capital, LLC to acquire prospects seeking private commercial real
estate loans.
