COMMERCIAL BRIDGE LOAN

A commercial bridge loan is a short-term loan designed to “bridge the gap” between the acquisition of a property to the placement of permanent financing and can be used for any reason. Because financing from traditional banks and institutional lenders can be a lengthy and pain staking process, oftentimes real estate investors seek bridge loans to secure the acquisition of a property while they continue to work toward putting permanent financing in place.

Terms can range anywhere from six months to three years and are generally interest-only.