Commercial Bridge Loans California
Commercial Bridge Loan Lenders

North Coast Financial is a direct commercial bridge loan lender for California real estate. One of the most experienced private money lending companies in California with over 40 years of experience and more than $800 million in private money mortgages funded, North Coast Financial allows real estate investors to capitalize on investment opportunities by providing fast, flexible and reliable commercial bridge loans.

Contact North Coast Financial now for a free consultation for a commercial bridge loan. North Coast Financial also provides residential bridge loans for primary residences that are owner-occupied.

Commercial bridge loans are short-term real estate loans for commercial property such as retail, office buildings, mixed use, and multifamily property including apartments and other multi-unit property. North Coast Financial is commercial bridge loan lender providing fast and flexible funding that enables a property owner to acquire a property or gives them time to obtain long-term financing from a conventional lender.

Commercial mortgage bridge loans typically have a term of 12-24 months. Longer terms may be available depending on the loan scenario but a commercial bridge loan is only intended to be short-term financing tool. Commercial bridge lenders and commercial hard money lenders in general are primarily concerned with the value of the property and the loan to value being requested by the borrower.

Commercial Bridge Loan to Value Ratios (LTV)

Commercial real estate bridge loan lenders may have lower loan to value ratios compared to conventional lenders. Commercial bridge loans for commercial property (retail, office, mixed use, etc.) may be limited to 60% of the current value of the property or purchase price. Commercial bridge loans for residential property such as apartment buildings and other multifamily properties may extend up to 65-70% of the current value of the property or purchase price.

Multifamily bridge lenders are able to provide higher loan to value ratios since there are many more users of residential dwellings compared to retail, office or industrial types of properties. The higher demand for multifamily property results in lower risk for multifamily bridge lenders which allows them to offer a higher loan to value.

Commercial Bridge Loan Rates

Commercial bridge loan rates are higher than interest rates available from conventional long-term lenders. This is because of the short-term nature of commercial bridge loans as well the speed of funding that is typically needed in these types of situations. Commercial bridge loan lenders are not performing a deep underwriting process compared to a conventional lender.

Expect commercial bridge loan rates to be in the range of 10-11%. Commercial bridge lenders may consider various factors such as the needed loan to value, property condition, property location, financial strength of the borrower and borrower’s credit.

Commercial Bridge Loan Common Uses

A common use of a commercial bridge loan is to quickly acquire commercial real estate when the buyer doesn’t have time to wait for conventional financing. In many cases, commercial bridge loans can close in days if needed while conventional financing can take months. Once the buyer has secured the property with the commercial real estate bridge loan, they can then start the process of refinancing with a conventional lender.

Another reason to use commercial bridge financing is that the buyer may need time to make repairs or improvements to the property or decrease the vacancy rate prior to applying for the long-term conventional loan. Once the property has been improved and/or stabilized, refinancing with a traditional lender would be possible.

Multifamily Bridge Loans

Multifamily bridge lenders provide financing that allows borrowers to purchase a multifamily property, make repairs and upgrades and then refinance into a long-term loan once the units are leased. Multifamily bridge loans are a short-term financing tool that provide the real estate investor with an opportunity to add significant value to the property prior to refinancing with a traditional lender.