What are Commercial Bridge Loans?
Persons dealing in commercial properties may be familiar with commercial bridge loans, but if you are new to the commercial property field you should consider the use of a commercial bridge loan from Shop Commercial Mortgage. Here’s some information about them:
What is a commercial bridge loan?
A commercial bridge loan is a short-term loan which allows you to renovate a commercial property or perhaps purchase it until a longer term mortgage can be procured. Typically bridge loans are used for renovations and the loan is repaid when the property is later sold or refinanced. A commercial bridge loan can also be useful for purchasing commercial land for the purpose of constructing a new building, with permanent financing to be obtained later.
How are commercial bridge loans different from other financing?
Commercial bridge loans are not used for residential financing. They are used to obtain or renovate commercial properties when conventional financing is not available or unavailable quickly enough to move ahead with a purchase or renovations.
Bridge loans are valuable when renovating a commercial property because the property has no or few occupants paying rent, so there is no income flow yet for the property. They are also useful when the borrower has a lower credit score. The bridge loan amount is typically based on the value of the property after renovations are completed, then a loan-to-value ratio is applied for the loan.
When am I a candidate for a commercial bridge loan?
Investors who are looking at commercial properties in poor condition, are abandoned but can be renovated, or have low credit ratings should contact Shop Commercial Mortgage to discuss a commercial bridge loan. You are the right candidate to obtain commercial bridge financing to make your property viable.
Shop Commercial Mortgage is here to help our Florida commercial customers with their needs. Contact us today at 813-516-5210 for information on a bridge loan or other commercial lending.