Hard Money/Bridge Loans

“What is Hard Money or sometimes called a Bridge Loan?” We define it as fast cash or quick money for properties and projects that come from sources that are not constrained by conventional underwriting guidelines or restraints from the typical market rate lending state of affairs. Used interchangeably but there is a difference.

Hard Money

There are several reasons that a Borrower may seek Hard Money; a property is difficult to finance such as raw land; Credit problems – a poor credit history of the Borrower or the property; a Balloon payment is due and conventional financing in not available to the project; Lack of documentation or a property has been non-producing and requires a turn-around operationally and financially – all of which requires quick and ready cash for a solution.

Bridge

When conventional financing fails to meet your needs a Bridge Loan can be the desired option. This is often a loan that assists the borrower in accomplishing a specific goal. They need not have any credit or monetary challenges just short on time. The loan is quickly underwritten with the end results for the borrower in sight. It is never used to compete with a bank’s rate and can be single digits.

However, a hard money or bridge loan should not be final solution for a property unless the property or project is going to be re-sold quickly or recapitalized, etc. So, when you do the math a Hard Money or Bridge Loan loan may not be that expensive or unreasonable.

Specialized program for un-stabilized properties, construction completion, Bridge funding to manage the gap and bring the property to stability. A non-recourse option that creates value. Requests above $3Million preferred.