Lately, we’ve had to turn away a barrage of borrowers who fall below our $1MM minimum funding limit on our commercial bridge loans.
In response to this increased demand, Boulder Equity Partners has developed a new bridge loan product. We now fund bridge loans from $500k and up. This new minimum loan limit applies to 5-plus-unit multifamily, mixed-use, office, retail, light industrial, warehouse, self-storage, and mobile home parks.
We offer up to 70% LTV on appraised value, plus 100% of renovation costs.
Commercial Bridge Loans Offer Advantages
Bridge loans offer many advantages. Borrowers who are looking for the best interest rate can run into hurdles with long-term financing. Those with less than stellar credit or those who own or wish to purchase a property that is not fully stabilized often are declined for low-interest loans or don’t qualify for the best rates.
By using a commercial bridge loan, the borrower can purchase an underperforming property to rehab, make the improvements, and then transition to a low-interest, long-term loan once the property is stabilized. The bridge is just that — a way to unlock the income potential in a commercial real estate investment.
Bridge Loan a Solution
Bridge loans solve other problems, too. A borrower can pay down higher interest unsecured lines, lowering financing costs along with monthly payments. Or maybe the borrower needs to pay off a tax lien or repair some credit issues that may be preventing them from qualifying for a long-term loan at a preferred rate.
For borrowers who don’t intend to hang on to the property long-term, bridge financing is a no-brainer. These loans tend to be less restrictive and less document-intensive which can lead to a quicker close. That’s particularly helpful when funding purchase contracts on deadline.
Migrate Commercial Bridge Loan into Long-Term Loan
Borrowers who are using bridge financing on a commercial property they plan to hold for several years should be looking at the endgame — improving their financial position so they qualify for preferred terms on a long-term loan.
At Boulder Equity Partners, we focus on the borrower’s goals and help them choose the financing options that work best for them. We are a nationwide lender offering both long-term financing and commercial bridge loans. We’d like to help you, too.