Lending guide · First lien
Commercial bridge loans
Short-term commercial real estate financing used to reach a defined outcome — a sale, a stabilization, or a conventional refinance.
In short
A commercial bridge loan is short-term debt secured by a commercial property, used to carry the asset from its current transitional condition to a defined exit. It is appropriate when the property has a credible path to stabilization but does not yet support conventional long-term debt.
Hard money lending guidelines
Asset-based financing. We focus on the property's value and the owner's equity, not a credit score. Low credit does not rule out a request. Every deal is subject to underwriting.
- Annual rate
- From 11.5%
- Origination
- From 2% of the loan amount
- Term
- 6 to 12 months
- Payments
- Interest only
- Loan-to-value
- Up to 70%
- Lien position
- First position only
Third party closing costs are separate.
Every term sheet is different. Every deal goes through underwriting and has specific terms. These are guidelines, not a commitment to lend.
The purpose of a bridge
A bridge buys time to execute. The loan is sized and structured around the gap between the property's current state and the outcome the plan produces, and it is repaid by that outcome.
The single most important element is therefore the exit, not the entry.
Typical bridge scenarios
Most bridge requests fall into a handful of recognizable situations.
- Loan maturity with no conventional takeout in place
- Lease-up of a recently renovated or repositioned asset
- Acquisition of a property that needs work before conventional debt is available
- A sale process that needs runway
- Recapitalization of an existing ownership structure
How to present a bridge request well
State the situation plainly, including what has gone wrong. Capital providers who work in transitional assets expect complications; what they cannot work with is a picture that changes during diligence.
Include in-place income, real operating expenses, existing debt and maturity, the plan, the budget and the target exit date.
Request loan terms
Submit a bridge request.
Questions
Answers before you ask.
- What is a commercial bridge loan used for?
- It is used to carry a commercial property through a transitional period — lease-up, renovation, a sale process, or a maturing loan — until a sale or longer-term financing repays it.
- How is a bridge loan repaid?
- Through the defined exit: a sale of the property, a refinance into longer-term debt, or stabilization that makes conventional financing available.
- What makes a bridge request stronger?
- A credible, specific exit; accurate in-place operating information; a realistic budget and timeline; and full disclosure of complications up front.
- What loan sizes do you make, and do you publish rates?
- Loans are typically $1M–$5M, first lien only, and larger loans are considered. We do not publish rates or leverage: every request is evaluated on the specific property, situation and business plan, and any financing is subject to underwriting, diligence, documentation and approval.
Nothing on this website is an offer to lend or a commitment of capital. All loans are subject to underwriting, due diligence, documentation and approval. Published lending guidelines are for general guidance only. Every deal goes through underwriting and has specific terms.
Next step
Working against a maturity date?
Send the property, the amount and the deadline. A principal will respond directly.