you’ve decided that short-term financing is the best option for your new
construction or upcoming investment. But, you’ve never applied for a commercial bridge loan before—no
worries let’s go over the basics.
applying for any other kind of commercial loan. In other words, you still need
the right documentation and a lender that understands your particular business
needs or market. Thus, if this is not your first commercial loan, which it more
than likely is not, you’re in luck. You do not have to lose sleep over
narrowing down your short-term financing options.
beneficial for you to focus on why a commercial bridge loan is right for you next project. For instance, say you already
have an investment property or two underneath your belt and you are looking to
make a few upgrades or improvements. If this scenario sounds familiar to you,
then great! This is exactly the time for a short-term financing.
Generally, you can be approved for this
particular loan if your new construction will take some time but will not
exceed three or more years depending on your specific market( hint:
construction that takes longer than three years, in general, is not a little
upgrade). In fact, non-residential
bridge loans can be for a small time period of say two weeks or you if you go
with a more traditional lender you may find bridge loans that range from 45 to
60 days.
years’ worth of upgrades you may want to rethink your need for short-term
financing. However, it is important to note that you may be able to find a
lender that offers what is known as bridge-to-permanent programs. These
particular kinds of programs can make the transition from short-term financing
to long-term financing more seamless (for a price of course).
Bridge-to-Perm Loan a Win-win Solution?
a win-win solution, especially if you are not necessarily interested in taking
the time to secure more financing or possibly work with another lender all
together. The fact is it is often a lot easier to stay with the lender or bank
you know. Thus, if you are currently working with a lender or bank that offers
such programs, it would definitely be in your best interest to check out a
bridge-to-perm loan programs or two.
understand that a bridge loan, a bridge-to-perm loans and a mini-perm loan are
different from one another in what they ultimately offer. At this point, you
probably are clear on the first two kinds of loans and what they can do for
your commercial venture. Thus, the last thing to cover is what a mini-perm loan
offers. A mini-perm is still a first mortgage on an investment property for mainly
construction, but the terms of the loan differ i.e. typically this is a bank
loan that covers a two to three years period and it can either be an interest only
loan or an amortized loan.
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
www.Level4Funding.com
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701