Lending guide · First lien
Short-term commercial real estate financing
Capital for a defined period and a defined purpose — sized to the plan, repaid by the outcome.
In short
Short-term commercial real estate financing is debt secured by a commercial property with a term measured in months rather than years, used to fund a specific plan — a purchase, a renovation, a lease-up or a maturity — that concludes in a sale or a refinance.
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.
When short-term capital fits
Short-term capital fits when there is a specific event on the horizon that changes the property's financeability: completion of work, achievement of occupancy, resolution of a legal issue, or a sale.
It fits poorly when there is no event — when short-term debt is being used to postpone a decision rather than to execute one.
Structuring around the plan
Term, funding mechanics and milestones should follow the plan rather than the other way around. Capital expenditure draws, lease-up targets and completion dates are all points where structure can either help execution or fight it.
- Term matched to the realistic timeline, with room for slippage
- Funding sequenced against the work actually being done
- A clearly identified source of repayment
- Agreement on what happens if the timeline extends
Preparing your request
Bring in-place operating information, the existing debt picture, the budget and the exit assumption. Requests with those four elements can be assessed quickly.
Request loan terms
Submit a short-term financing request.
Questions
Answers before you ask.
- What is short-term commercial real estate financing?
- Debt secured by a commercial property with a term typically measured in months, used to fund a specific plan that concludes in a sale, refinance or stabilization.
- How is it different from a bridge loan?
- The terms overlap heavily. 'Bridge' emphasizes the gap being crossed; 'short-term' emphasizes duration. Both are repaid by a defined exit.
- What should I prepare before submitting?
- In-place income and expenses, the existing debt and maturity, the budget and business plan, and the assumed exit with its timeline.
- 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
Have a defined plan and a defined exit?
Send the property, the amount and the deadline. A principal will respond directly.