This type of financing is best suited to facilitate a property acquisition or repositioning for a short to medium period, otherwise referred to as ‘bridge’ period. A bridge loan, synonymously referred to as a hard money loan, is typically designed as a form of financing that is used when a borrower or property needs repositioning either due to insufficient income, derogatory credit, or significant property improvements. The end result should be a significant improvement or ‘Exit Strategy’ allowing the borrower and property to qualify for more conventional financing or a similar solution at the maturity of this loan.
Royal Capital Group offers it clients access to bridge financing for a variety of commercial property types including:
- Multifamily
- Retail
- Light Industrial
- Warehouse
- Mixed Use
- Medical Office
- Office Building, Condo Units
- Hospitality (Flagged)
- Other income producing properties – case by case
- Land, construction, fix n flip on a case by case basis
Below is a range of the typical terms and conditions of financing that a borrower can expect:
| GENERAL TERMS AND CONDITIONS | |
|---|---|
| Property Types | See Above List |
| Loan terms | Range from 6 to 36 months (Per borrower request) |
| Loan Purpose | Purchase, R/T refinance or Refinance – cash out |
| Loan Amounts | Min $2,500,000 to $100M+ |
| Loan Amortization | Interest only |
| LTV | Up to 90% LTV (only income producing properties) |
| Interest Rates | Between 9% – 13% |
| Lender Origination | Between 1% -3.5% |
| Recourse | Full Recourse and limited recourse available for lower LTV’s |
| Prepayment Penalty | Range from none to term of the loan |
| Assumable | No |
| Required Reports | Credit, appraisal (MAI preferred), Environmental (If applicable) |
| Location | Nationwide (Loan minimums higher in western states) |
