Commercial Real Estate Bridge Loan
Do you have a real estate opportunity that you need financing for now? If so, a commercial bridge loan might be the solution you are looking for. New real estate opportunities come on the market every day, following a first come first serve chain of command.
Waiting on approval for a traditional, long-term real estate loan can take months depending on the loan terms. This means you might never get the opportunity to capitalize on new offers and favorable purchase prices.
The good news is that you can leverage short-term financing options, giving you access to the funds needed to purchase the property while the deal is still available. The basics of a commercial bridge loan, the general process, and what to look for in a lender are three important areas to understand when it comes time for your next real estate purchase.
What is a Commercial Bridge Loan?
A commercial bridge loan is a type of immediate short-term financing, which is usually used for real estate purchases. This loan type is designed to give investors the ability to purchase a property within a few days and work out long-term financing in the future.
The term “bridge” can be confusing since it is only meant to describe the use of the loan and not the specific characteristics. Since bridge loans are short-term loans, they are commonly used in commercial real estate to purchase a property or begin renovations.
How Do Commercial Bridge Loans Work?
The process of commercial bridge loans can differ based on your specific situation and the lender you work with. However, most commercial bridge loans operate in a similar manner. First, you will need to identify the piece of property you are interested in purchasing. Then, you will reach out to a lender to go over general terms and finalize the loan. Finally, you will receive the funds to use for the property purchase. With the right lender the entire process can take as little as five to seven days.
Generally, the property you are purchasing will serve as collateral and the specific terms you receive are dependent on the loan-to-value ratio, any down payment, the purpose of the property and the after-repair value. Typically interest rates can range anywhere from 7% to 15% depending on your lending history, equity in the property, and timeframe to fund.
Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.
What to Look for in a Commercial Bridge Loan Lender
Finding the right commercial bridge loan lender is important to not only receive funds timely, but also to obtain competitive terms. The first factor you want to consider is the funding time. How fast can the lender process your application and send you the funds? Real estate deals happen quickly, meaning you don’t want to be waiting weeks or months for the bridge loan to process.
Next, inquire about prepayment incentives. Since a commercial bridge loan is a short-term financing solution, you should have the ability to pay it off early without a penalty. This can help you save money and avoid costly interest. Early payoffs are commonly done with renovated properties once the value increases. Furthermore, evaluate the communication of the lender. Are they quick to respond to emails and phone calls or are you stuck waiting days to hear back? A good lender will keep you at the top of their priority list and communicate effectively from day one.
Does it sound like you can use a commercial bridge loan? If so, reach out to one of our team members at Wilshire Quinn Capital at 619-872-6000 or visit our website at www.wilshirequinn.com. We specialize in offering competitive, quick, and streamlined commercial bridge loans, helping you secure your next investment.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
Interest Rates from 7.5% to 11%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
About Wilshire Quinn
Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.
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