Bridge Loans for Commercial Real Estate - Acquisition & Rehab to 100% of Cost
Sound to good to be true? Maybe it is and maybe it isn't, the devil is always in the details. There are a lot of bridge lenders (... and pretenders ...) touting their bridge loan product with "100% of rehab cost" included. Many brokers and borrowers are reading into this, thinking that the loan is a 100% LTV, however, closer examination reveals something entirely different.
Bridge loans for commercial real estate acquisition and rehab are coming back into the market at a very rapid pace and that is a good thing. This 'new' bridge loan product is actually not new at all, and surprise, surprise, it's not a 100% LTV loan. That notwithstanding, it is a great loan nonetheless.
With LTV ratios that can exceed 100% of current market value in some cases the thing that is important to focus on when chasing a distressed property that will required financing by use of a bridge loan for commercial real estate is the LTC or Loan to Cost percentage. LTC calculations on bridge loans for commercial real estate can vary widely from lender to lender and from opportunity to opportunity.
The right Ratios - Bridge Loans for Commercial Properties
With LTV/LTC's ranging from a low of 65% to as much as 80% with up to 100% of rehab cost financed and the addition of interest reserves to cover payments until stabilization, understanding what loan fits a specific deal can be confusing to say the least. The simple answer is the most aggressive deals get the best terms, meaning the lowest down payment requirement.
If in the market for a bridge loan and confused about the ways in which to leverage the highest LTV/LTC percentage for your bridge loan for commercial real estate, stop and call the experts. Dividend America Commercial Lending is a leading source for bridge loans for commercial real estate. We provide lending solutions , not just loans!
For more information call Michael Gross, President, Dividend America or email your questions/scenario to email@example.com. We are experts at providing bridge loans for commercial real estate.
Lending in all 50 states and focusing on bridge loans for commerical real estate in markets and submarkets listed in the S&P Case Shiller Home Price Index. We look for opportunities in: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.