Bridge Financing

This type of financing is best suited to facilitate a property acquisition or repositioning for a short to medium period, otherwise referred to as ‘bridge’ period. A bridge loan, synonymously referred to as a hard money loan, is typically designed as a form of financing that is used when a borrower or property needs repositioning either due to insufficient income, derogatory credit, or significant property improvements. The end result should be a significant improvement or ‘Exit Strategy’ allowing the borrower and property to qualify for more conventional financing or a simliar solution at the maturity of this loan.

Royal Capital Group offers it clients the capability to obtain bridge financing for a variety of commercial property types including:

  • Multifamily
  • Retail
  • Light Industrial
  • Warehouse
  • Mixed Use
  • Medical Office
  • Office Building, Condo Units
  • Hospitality (Flagged)
  • Other income producing properties – case by case

Below is a range of the typical terms and conditions of financing that a borrower can expect:

Property TypesSee Above List
Loan termsRange from 6 to 36 months (Per borrower request)
Loan PurposePurchase, R/T refinance or Refinance – cash out
Loan AmountsMin $2,500,000 to $100M+
Loan AmortizationInterest only
LTVUp to 90% LTV (only income producing properties)
Interest RatesBetween 9% – 13%
Lender OriginationBetween 1% -3.5%
RecourseFull Recourse and limited recourse available for lower LTV’s
Prepayment PenaltyRange from none to term of the loan
Required ReportsCredit, appraisal (MAI preferred), Environmental (If applicable)
LocationNationwide (Loan minimums higher in western states)

Royal Capital Group

1680 Michigan Ave

Suite 700

Miami, FL 33139 - USA

Tel: 786.269.4744

Fax: 888.748.2719