Your Direct Source for Multifamily Bridge Loans
Fast. Flexible. Funding.APPLY ONLINE
213-474-7980
Multifamily bridge loans are short-term, temporary financing, used by real estate investors to purchase, remodel, or refinance an apartment complex with five or more units.
These loans are typically held for 6 months to 3 years, at which point borrowers either sell the property or refinance into a traditional bank loan.
Multifamily bridge loans are financed with a main focus on the equity and value of the collateral property, as the primary factor, rather than a borrower’s credit score, income, or financial history.
Asset-based: Approval is determined by the property’s value, not the borrower’s financials
Purpose: Bridges the gap between temporary and permanent bank financing
Flexible: Funds can be used for purchases, renovations, stabilizing a property, or to refinance into a conventional bank loan
Fast Closing: Funding can be completed in 5 to 7 days, unlike banks, which can take months
Interest-Only: Expect to pay 8% to 15% interest-only, helping preserve cash flow by not needing to pay down principal right away
Exit Strategy: Bridge lenders want to hear a sound exit strategy. Common strategies include selling the property or refinancing with a bank.
Get in touch with a bridge lender, and they will ask basic details about your property and your financial strength as a borrower. Normally, within 5-10 minutes, they will be able to determine if your loan is feasible or not.
The bridge lender will either hire an appraisal company, a broker's price opinion (BPO), or evaluate the value of your property based on recent comparable sales in the area.
Factors such as current condition, occupancy, and upside potential will also be taken into consideration.
Expect interest-only payments for a short duration, usually less than 2 years. This is due to lenders being cautious about protecting themselves due to fluctuations in the real estate market.
Sometimes options to extend the loan will be available; it’s best to ask up front.
Once approved, funds will be released to escrow, which will then disburse the money to the buyer based on the agreed terms. This process is fast and only takes a few days.
Multifamily bridge lenders will want to know your exit strategy before funding the loan; they want to know how they will be repaid. Standard repayment methods include selling the property, refinancing with a bank loan, or paying off the debt using other outside funds.
When real estate investors find themselves in a temporary cash crunch, bridge loans provide economic relief as a flexible alternative financing option.
Situations such as financing gaps, short timelines, and quick renovation projects often don’t make sense for traditional bank financing due to its slow and impractical nature for investors.
Instead, multifamily bridge loans offer investors a more flexible solution to obtaining financing fast.
Multifamily bridge loans help real estate investors capitalize on attractive market opportunities and stabilize properties with low occupancy or deferred maintenance until they are eligible for conventional bank financing.
Crescent Lenders is a top-rated multifamily bridge lender serving all of California. For over a decade, we have provided real estate investors from San Diego to San Francisco with the quick short-term financing they need.
Timing can make or break a deal. When traditional lending institutions can’t provide, look to Crescent Lenders for fast funding, providing the flexibility and support you need.
Russell is a seasoned real estate investor, writer, and hard money lending expert, as well as the co-founder of Crescent Lenders. He holds a degree from the University of Southern California’s Marshall School of Business. Outside of work, Russell enjoys surfing and spending time outdoors with his dog, Amy.