Hard Money and Bridge Capital
Bridge financing, also sometimes referred to as a ‘hard money’ or ‘equity’ based financing, is a loan through which a borrower receives funds that are usually secured by either commercial or residential real estate. This type of financing can help a borrower to acquire a property with speed and efficiency or be a short ‘bridge’ solution to repositioning an existing property. A bridge or hard money loan usually includes an ‘Exit Strategy’, which is the expectation that at the maturity of the bridge loan it will be repaid, replaced by conventional financing or by an alternative viable solution.
Royal Capital Group offers private money lending through its private investors throughout the Florida market. Additionally we proudly offer our services as a broker for bridge loan requests on a nationwide basis.
Royal Capital Group offers it clients the capability to obtain bridge financing for a variety of commercial property types.
Below is a range of the typical terms and conditions of financing that a borrower can expect:
|NATIONWIDE BRIDGE FINANCING TERMS|
|Property Types||Multifamily, Retail, Light Industrial, Warehouse, Mixed Use, Medical Office, Office Building, Condo Units, Hospitality (Flagged), Other income producing properties – case by case|
|Ineligible Property Types||Land, Construction, Vacant Properties|
|Loan terms||Range from 6 to 36 months (Per borrower request)|
|Loan Purpose||Purchase, R/T refinance or Refinance – cash out|
|Loan Amounts||Min $2,500,000 to $100M+|
|Loan Amortization||Interest only|
|LTV||up to 90% LTV (only income producing properties)|
|Interest Rates||Between 9% – 13%|
|Lender Origination||Between 1% -3.5%|
|Recourse||Full Recourse to principle|
|Prepayment Penalty||Range from none to term of the loan|
|Required Reports||Credit, appraisal (MAI preferred), Environmental (If applicable)|
|Location||Nationwide (Loan minimums in western states)|