Successful real estate investors make money when they can add value to a deal. That is why fix and flips are so popular on the residential side. But what about commercial real estate investing? A value-add commercial deal is typically a deal that needs rehab work or is experiencing a high vacancy. These projects are difficult to finance with traditional banks because they are “underperforming”. So what is the solution?
Commercial Bridge Lenders understand this need and fill the gap between the acquisition and owning a project that can be financed by a bank. Think of a Commercial Bridge Lender as a short term partner in your project.
Pine Financial Group is the expert in short term lending solutions. Unlike banks, we see the potential of a project and can loan based on that potential. We can close on your value-add commercial project quickly so you secure more deals and make more money
What Is A Commercial Bridge Loan?
Commercial Bridge Loans are a flexible loan used by commercial real estate investors on a short-term basis. A Commercial Bridge Loan typically bridges a gap between the purchase of commercial real estate and the investor’s exit strategy. Common exit strategies are selling the project for a profit, or refinancing it and keeping it for the cash flow.
It is common that an investor will buy a project that is underperforming or distressed and will need to use a Commercial Bridge Loan. The loan can be used to buy and make repairs. Once it is performing the building will qualify for bank financing and the real estate investor will refinance into a more permanent loan.