Recently Funded: $1,600,000, Quick-Close Bridge Loan, Colorado

Our borrower needed a bridge to take out a maturing construction loan on an SFR in a Rocky Mountain resort town. The construction loan matured in the winter while the borrower hoped to wait until summer to sell the property. The bank that provided the construction loan could not offer bridge financing, so the borrower came to us.

The borrower had chosen to hire the same local title company that handled the construction financing, hoping to save time and money. However, only days before the planned closing, that title company declined to insure the property unless the borrower obtained a certificate of occupancy, a process that would have taken weeks and risked a default on the construction loan.

Because that local title company was an agent, not a direct insurer, they were unable to negotiate a work-around to that requirement and the loan could not be funded.

However, we reached out to our go-to company Chicago Title, which agreed to waive that condition and issued title insurance so the deal could fund. With the help of Chicago Title, we were able to provide a $1.6MM bridge loan and close within 2 weeks.

When it comes to getting deals over the finish line, the title company you choose matters. For more, see our post From Crisis to Quick Close: How to Keep Your Commercial Real Estate Loan From Derailing