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Bridge Loans
Commercial real estate transactions and businesses don’t always depend on conventional forms of financing. From buying one property before selling another to completing renovation works and making timely investments, the bridge loan is the perfect solution to meet your needs.
Bridge Loans
What Is a Bridge Loan?
A bridge loan refers to a short-term financing instrument that ensures immediate access to funds up to the time when another form of long-term financing is possible.
This type of loan is popular whenever there is a need to seize the moment, although the borrower is not quite ready to undertake the responsibility of permanent financing. This kind of financing is usually collateralized with real property and may last between several months and a few years.
Because they are intended as temporary financing, bridge loans are usually replaced with long-term financing, property sale proceeds, or another planned exit strategy.
What we arrange
Types of Bridge Loans We Help Arrange
01
Commercial Real Estate Bridge Loans
Short-term financing for office buildings, retail centers, industrial properties, multifamily communities, mixed-use developments, and other commercial assets.
02
Investment Property Bridge Loans
Designed for investors purchasing, improving, or repositioning income-producing properties before transitioning into permanent financing.
03
Construction Bridge Financing
Provides temporary capital during construction or redevelopment while long-term financing is being finalized.
04
Multifamily Bridge Loans
Short-term financing for apartment buildings and multifamily properties undergoing renovations, lease-up, or operational improvements.
05
Acquisition Bridge Loans
Ideal for borrowers who need to close quickly on a commercial property while arranging permanent financing.
Bridge loans in Houston
Typical Bridge Loan Terms
Bridge loans are built for speed and flexibility. They usually cost more than long-term financing, so they work best when there is a clear plan to repay them. Exact terms depend on the property, the lender and your exit plan, but here is what to expect.
Loan term
Short-term
Short-term by design, often with options to extend if the project needs more time.
Payments
Often interest-only
Lower monthly payments while you buy, renovate or lease up the property.
Speed
Weeks, not months
Many bridge loans can close faster than bank financing when the property and documents are ready.
When a bridge loan makes sense
- Buying a property quickly before long-term financing is ready
- Renovating or repositioning a property to raise its value
- Leasing up a property before refinancing
- Buying a new property before selling another
- Paying off a maturing loan while you arrange new financing
- Projects that do not yet fit bank requirements
Common exit strategies
- Refinancing into a long-term commercial mortgage
- Selling the property
- Refinancing into an SBA loan for owner-occupied properties
- Paying off with proceeds from another sale
Lenders look closely at your exit plan, so having a realistic one improves your options.
How it works
How Our Bridge Loan Process Works
STEP 01
Review the deal
We look at the property, the purchase or payoff amount, your plans and your timeline.
STEP 02
Plan the exit
We help define how the bridge loan will be repaid, whether through a refinance or a sale.
STEP 03
Match the lender
We find bridge lenders suited to the property type, loan size and speed you need.
STEP 04
Close on time
We coordinate documents, appraisal and title so you can close when the deal requires it.
Questions
Bridge Loan FAQs
How fast can a bridge loan close?
Many bridge loans can close in a few weeks when the property information and documents are ready. Timing depends on the lender, the appraisal and the title work.
How much can I borrow with a bridge loan?
It depends on the property value, its condition and your plans. Many lenders will lend a percentage of the current value or of the total project cost, and you will usually need some of your own money in the deal.
Are bridge loans more expensive than regular commercial loans?
Usually, yes. Bridge loans typically have higher rates and fees because they are short-term and flexible. They make sense when the speed or flexibility helps you get a better property or a better long-term loan.
What is an exit strategy?
An exit strategy is your plan to repay the bridge loan, most often by refinancing into long-term financing or selling the property. Lenders want to see a realistic plan before they approve the loan.
Can I use a bridge loan for a property that needs renovation?
Yes. Bridge loans are often used for value-add projects, and some lenders can include part of the renovation budget in the loan.
Do you arrange bridge loans outside Houston?
We are based in the Houston area and work on commercial projects across Texas. Contact us about your property and timeline.
Planning your long-term financing too? See our commercial real estate loans, commercial mortgage broker services and SBA loans in Houston.
Bridge Loans
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