Bridge Money Guide
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WHAT IS A BRIDGE LOAN?
A Bridge to Your Next Move.
Bridge loans are short-term financing solutions used to “bridge the gap” between immediate capital needs and long-term financing, refinancing, or the sale of an asset.
They are ideal for real estate investors and businesses that need quick access to capital to act on time-sensitive opportunities.
How Bridge Loans Work
1. Acquire Property
Secure the property with a bridge loan to close quickly.
2. Bridge Loan
Use short-term financing to bridge the gap.
3. Refinance/Sale
Transition to long-term financing or sell the property.
4. Repayment
Repay the bridge loan and move forward.
KEY CHARACTERISTICS
LOAN AMOUNTS
$500K - $500MM
TERMS
Up To 5 Years
INTEREST OPTIONS
Interest Only Options Available
FLEXIBLE STRUCTURES
Customized solutions to fit your needs
COMMON USES
Acquisition Financing
Construction Projects
Partnership Buyouts
Refinancing
Recapitalization
Gap Financing
BENEFITS OF BRIDGE LOANS
- Speed: Close quickly and seize opportunities.
- Flexibility: Custom terms and structures for your unique situation.
- Opportunity Financing: Bridge the gap to long-term success.
- Asset-Based Lending: Focus on the value of the property.
RISKS & CONSIDERATIONS
- Higher Interest Rates: Typically higher than long-term loans.
- Short-Term Terms: Requires a clear exit strategy.
- Refinancing Risk: Dependent on future financing or sale.
- Fees & Costs: May include origination fees and prepayment penalties.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term financing solution designed to provide immediate capital while a borrower secures long-term financing, completes a project, or prepares a property for sale.
How much can I borrow with a bridge loan?
Bridge loan amounts typically range from $500K – $500MM, depending on the property, transaction structure, and borrower qualifications.
What types of properties can be financed?
Bridge financing may be available for a variety of commercial property types, including office, retail, industrial, multifamily, hotel, self-storage, mixed-use properties, and mobile home parks.
What are the typical terms for bridge loans?
Bridge loans generally have terms ranging from 1 to 5 years and often offer interest-only payment options with flexible repayment structures.
How quickly can I get funded?
Funding timelines vary by transaction, but bridge loans are designed to close faster than traditional financing, allowing borrowers to capitalize on time-sensitive opportunities.
Who is a bridge loan right for?
Bridge loans are ideal for investors, developers, and property owners seeking short-term financing for acquisitions, refinancing, construction projects, recapitalizations, partnership buyouts, or other transitional financing needs.
Need Fast, Flexible Financing?
Our bridge loan solutions help you act fast and move forward with confidence.