Commercial bridge loan financing is easy to obtain for the right types of projects that include a focus on a solid turnaround plan or exit strategy. Many commercial real estate investors and professionals find great deals, are adept at negotiating an aggressive price, and are able to develop a viable plan for rehabilitating and re-positioning a project. Unfortunately, many stop there and fail to find funding because they don’t have an effective or believable plan for stabilization.
To be successful at obtaining a commercial bridge loan for a neighborhood center, an office building or even a multifamily residential development, investors need to spend as much time on the plan for stabilization as they do with the plan for acquisition and rehabilitation. Developing a detailed proforma income statement for the full stabilization period is critically important. The proforma lays out the timeline for the lender to know when he can reasonably expect to be refinanced out (thus recovering his capital). The shorter that timeline, the less perceived risk there is, assuming that the timeline is credible. Lower risk generally leads to more favorable loan terms and faster approvals.
Having an experienced team of advisers on board that thoroughly understands the process can help you to lay the groundwork for obtaining the financing to complete your project. At Dividend America Commercial Lending, we advise our clients on how to deal with our underwriters every step of the way. While we represent ‘the money’ we still advocate for a great deal for our borrowers and helping them achieve their commercial bridge loan financing goals is a top priority for us.
For a free quote on your project, apply online or reach out directly to our team. Call Michael Gross, President, Dividend America Commercial Lending, direct at 404-549-6756 or email your scenario to . Get answers today and be closing by tomorrow!