LSG Lending Advisors is dedicated to finding the best loan to help secure your property. A bridge loan is ideal for many when waiting to complete their property or to fund short-term expenses. Here is where you can find all the information you need on bridge loans and how they work.
What Is a Bridge Loan?
Bridge loans are a short-term option (up to 36 months) while waiting for long-term funding. Some Bridge lenders may offer additional 12-month extensions. A bridge loan works by providing an immediate cash injection to "bridge the gap," hence its name. Bridge loans can be used when waiting for the sale of a property to go through while purchasing another, for buying a property at auction, to pay for renovations, to bridge a broken property chain, to buy a second property, or to release cash flow.
How Does a Bridge Loan Work?
LSG Lending Advisors are proud to provide bridge loans on properties, including apartments, student housing, and senior housing. We offer excellent terms and conditions with a prepayment plan, which is prepayable at any time in whole or part, on a scheduled payment date, with a 1.00% premium during construction or until the final loan draw and without a premium after that. The rate will change quarterly over the 1-year U.S. Treasury Constant Maturity Yield Index during the term period. During the term period, the rate will adjust quarterly over the 1-year U.S. Treasury Constant Maturity Yield Index. We have an Estimated Pricing Placement guide to show what a bridge loan could look like and how bridge loans work.
Commercial Bridge Loans
There are different types of bridge loans that LSG Lending Advisors can help you with; regulated, unregulated, open, and closed. They each offer their terms and conditions. With an open bridge loan, there is no fixed repayment date, whereas a closed bridge loan requires you to have a fixed date for your repayment. Unregulated is the most common when dealing with a multifamily and apartment bridge loan as the property is a building used for business purposes or won’t be lived in by the borrower.
Bridge Loan Requirements
To offer a bridge loan on apartments or multifamily properties, we require the following:
- Demand Analysis or Independent Market Study
- Phase I Environmental Report
LSG Lending Advisors has a wealth of experience in bridge loans, and our trusted bridge loan lenders are happy to present and guide you through all your available options. Contact us today to discuss your needs; from open or closed loans to regulated and unregulated loans, our experts can help you find a loan to help secure your property.