Hard Money & Bridge Capital
A commercial borrower or broker will seek or recommend seeking this type of financing to facilitate a property acquisition or repositioning for a short period. A Bridge loan, similar to a hard money loan, is specially designed as a form of financing that is used when the end result or ‘Exit Strategy’ is the expectation that loan will be removed by more conventional financing within the near future.
Royal Capital Group offers it clients the capability to obtain bridge financing for a variety of commercial property types including:
- Multifamily
- Apartments
- Retail
- Light Industrial
- Warehouse
- Mixed Use
- Medical Office
- Office Building, Condo Units
- Investor Residential
- Other income producing properties
Typically ‘Hard’ money lending and bridge financing are capped at the same LTV’s for all property types, with the exception of land (Land is capped at 50% LTV). All other property types will have a MAX LTV of 65% - 70%.
Below is a range of the typical terms and conditions of financing that a borrower can expect:
|
|
GENERAL TERMS AND CONDITIONS
|
|
Property Types
|
See Above List
|
|
Loan terms
|
Range from 6 to 36 months (Per borrower request)
|
|
Loan Purpose
|
Purchase of Refinance
|
|
Loan Amounts
|
Min $500K to $100M+
|
|
Loan Amortization
|
25 to 30yrs (will mostly be Interest only)
|
|
LTV
|
60 - 65% on all other property types (Some exceptions
Apply to income supporting properties)
|
|
Recourse
|
Full Recourse to principle
|
|
Prepayment Penalty
|
Range from none to term of the loan
|
|
Assumable
|
No
|
|
Required Reports
|
Credit, appraisal (MAI preferred), Environmental (If applicable)
|
|
Location
|
Nationwide (Prefer Metrocity areas)
|