Bridge Loan - Apartment & Multifamily Repositioning
Bridge loan lending can be a complex world filled with unscrupulous players charging high upfront fees and not delivering at the closing table. Today there are rumored to be bridge loans for apartment buildings and multifamily development repositioning projects with rates in the 8-10% range.
The reality is that a bridge loan with these rates are typically reserved for deals in the Top 5 major markets and for properties that have a loan to value of less than 50%. Essentially, these deals represent little to no risk to the bridge loan investor.
Quality Bridge Loan Investors (Lenders)
Quality bridge loan investors (lenders) are not necessarily the cheapest but the ones that close fast and show flexibility should the borrower run into delays. Typical bridge loans have rates around 11-12%, can close in as little as 14 days and, in many cases, do not require a full appraisal.
Using a bridge loan to pull cash out of an existing property to reposition the property or to acquire a property that needs repair is a great strategy because many bridge loan lenders want their money back quickly, they do not have prepayment penalties.
The best way to view a bridge loan from the borrower's perspective is to understand that the bridge lender is more like an inexpensive, short-term partner and not as an expensive, long-term lender. When seen through this prism almost any terms offered in a bridge loan is very attractive! Think about, partners usually want 50% or more of the profits, so bridge loans are extremely attractive in comparison.
Lending in all 50 states and focusing on Bridge Loan Multifamily Financing and Bridge Loan Apartment Loans in the markets and submarkets listed in the S&P Case Shiller Home Price Index and the surrounding secondary markets to those cities. 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.