BEP Meets Borrowers’ Need for Short Money

Today’s commercial real estate borrowers are met with rising interest rates on long-term loans at the same time they are facing maturing loans — and replacement loans failing with traditional banks. They’re scrambling for a solution.

For many borrowers, perm financing doesn’t make sense right now. They don’t want to commit to higher rates and long-term prepayment penalties. At the same time, they don’t want to pay high interest on a bridge loan. But they like the interest-only payments. And they like the non-recourse attribute of bridge loans.

To meet this challenge, Boulder Equity Partners is launching its Short Money Loan Program.

What is a Short Money Loan?

This program is a hybrid between a traditional CMBS loan and a bridge loan, crafted by fusing the best attributes of both programs. The program is tailor-made for borrowers who are stuck in the confluence between expiring loans, reluctant banks, and high interest rates.

A non-recourse Short Money Loans offers interest-only payments, lower rates than bridge loans, and shorter prepayment penalties than a long-term loan.

Other key highlights include:

• Loan amounts from $3MM to $150MM
• 3, 5, or 10-year terms
• Rates from 8.5%% – 9%, on average
• LTV: 65% +/- depending on deal
• Prepayment: 2–3-year interest guarantee
• 2 points origination
• Close time: 45-60 days on average
• 1.25 DSCR (lower DSCR for multifamily considered)

Short Money Loans are available for most commercial property types except hospitality, and ground-up construction. We can pay off maturing construction loans if the property is at least 60% leased. Major Metro areas preferred, with minimum county population of 100,000.

Boulder Equity Partners is a nationwide lender for commercial real estate, offering traditional long-term loans, bridge loans, construction loans, and now Short Money Loans.