Bridge Loans for Multifamily Properties

Bridge Loans for Multifamily Properties may be a great option for real estate investors looking for short term funding to meet their financial goals. A bridge loan is a short-term loan that is used to finance a real estate transaction while the borrower is waiting to close on a permanent loan for looking to sell the property in less than 3 years.  Bridge loans for multifamily properties are used for a variety of purposes, including but not limited to:

• Purchasing an apartment building. Bridge loans can be used to bridge the gap between the time a borrower makes an offer on an apartment building and the time the property would qualify permanent financing closes. This can be helpful if the borrower needs to close on the property quickly, but it would take longer to qualify and close on a permanent financing funding option.
• Refinancing construction debt. Bridge loans can be used to refinance construction debt during a property’s lease-up phase. A property does not qualify for permanent financing until it is stabilized for at least 90 days. This can also be helpful if the borrower needs to lower their monthly payments while the property is still filling up with tenants. Bridge loans are generally interest only payments.
• Financing renovations or other major capital improvements. Bridge loans can be used to finance renovations or other major capital improvements at a property. This can be helpful if the borrower needs to make improvements to the property before they lease them or qualify for permanent financing.

Bridge Loans for Multifamily Properties typically have shorter terms and higher interest rates than permanent loans. However, they can be a valuable tool for borrowers who need to close on a real estate transaction quickly or who need to finance renovations or other major capital improvements and have interim financing until the property and or the sponsor would qualify for permanent financing or sell the property.

Here are some of the key features of bridge loans for multifamily properties:

• Short-term loans. Bridge loans typically have terms of one to three years.
• Higher interest rates. Bridge loans typically have higher interest rates than permanent loans.
• Less stringent lending requirements. Bridge loans may have less stringent lending requirements than permanent loans, making them easier to qualify for.
• Quick closings. Bridge loans can often close quickly, which can be helpful for borrowers who need to close on a real estate transaction quickly.

If you are considering a bridge loan for a multifamily property, it is important to carefully consider your needs and options. Bridge loans can be a valuable tool, but they are not right for every situation. You should work with a qualified lender to discuss your specific situation and determine if a bridge loan is the right choice for you.

FBC Funding offers Bridge Loans for Multifamily Properties including 2-4 unit multifamily properties and 5 or more unit multifamily properties. FBC Funding will also offer the Bridge Loan for Multifamily Properties on mixed use properties that may have a commercial  component, such as retail, office space or warehouse. For more information call 888-848-3114 or

 Click here to schedule a free loan consultation to determine if Bridge loans for Multifamily Properties   are the best option for you.

The post Bridge Loans for Multifamily Properties appeared first on FBC Funding.

RESIDENTIAL FIX AND FLIP LOANS FOR INVESTORS:

The post FBC Funding Loans For Investors appeared first on FBC Funding.

FBC Funding offers a Commercial Line of Credit for Real Estate Investors as part of our Bridge Loan Commercial Real Estate Funding Program. This Commercial Real Estate Line of Credit offers investors an opportunity to have funds available to purchase additional investment property without paying interest on the funds not in use.  The Line of credit is facilitated through our Bridge Loan Program.

Bridge Loan with Commercial Line of Credit Functionality

To understand the Commercial Line of Credit you must first understand it is a part of our Bridge Loan Program and the borrower must qualify for the Bridge Loan.

Bridge Loan Core Parameters

➢ $1MM – $20MM funding amount

➢ Rates: 6.25% – 9%, interest only

➢ LTV: 65% – 75% (up to 80% on multi-family and industrial) the maximum LTV is based on the property type

➢ 1-2 year term (up to 3 years, with extensions)

➢ at least 50% of line must be activated upon funding (if paying off existing loan or acquiring property as part of funding, that is included in the 50%)

➢ Interest will only be charged on funds that are drawn

➢ No Prepayment Penalty

➢ Owner occupied and rental commercial properties

➢ Refinance – Rate and Term and Cash Out, or Acquisition,

Property Types:

• Multi-Family
• Industrial
• Office
• Retail
• Mixed Use
• Self-Storage
• Hospitality
• Parking Lots (income producing only)

How Commercial Line of Credit Works:

➢ We must be in first lien position, so we will need to pay off any existing mortgages/liens.

➢ We establish a maximum funding amount available, based upon property type, property value, DSCR and other variables

➢ The borrower must use at least 50% of the line at time of funding (which can include paying off any existing mortgage, plus any cash out at initial funding, if desired)

➢ The remainder of the available funds (difference between maximum funding amount and funds disbursed at closing) are available as a commercial line of credit to draw against in the future.

➢ We will likely limit the number of draws during the term of the loan.

➢ This product has a maximum term of 3 years (including extensions) so we will need to consider the exit strategy right up front.

➢ The product is a great fit for borrowers that have equity in their property and need cash available in short order.

Commercial Line of Credit Example:

1. Borrower has a multi-family property that is worth $15,000,000 with first mortgage of $8,000,000 and is interested in purchasing additional real estate, wanting the cash available at his disposal so he can move quickly as properties become available.

2. We provide a maximum loan amount of $12,000,000, paying off the $8,000,000 existing mortgage and providing additional available capital of $4,000,000 to be used in the future by the borrower, at their discretion (for the sake of simplicity, this example does not include closing costs). Borrower only pays interest on the initial $8,000,000 funded amount, up until the time he pulls additional cash from the commercial line of credit.

Contact FBC Funding Today

Call 888-848-3114

Email louisj@fbcfunding.com

Click here to Schedule a Loan Consultation

The post Commercial Line of Credit – Bridge Loan appeared first on FBC Funding.