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Bridge & Hard Money Loans

DESCRIPTION

A program precisely designed for properties that either are stabilized or are in need of minor to modest renovation or other value-add strategies.

Capital Network Group (CNG) bridge loans are utilized to finance stabilized properties while CNG prepares its clients for permanent financing or if your property is in need of moderate rehabilitation or re-tenanting where you require a value add strategy before securing permanent financing from an FHA, Fannie Mac, and Freddie Mac long term loan.

ELIGIBLE PROPERTIES

All Asset Classes Considered: Multi-Family, Retail, Office, Industrial, Healthcare, and Hospitality.

LOAN AMOUNT

$1 million to $35 million plus

LOAN TERM

Generally loans terms range from 12 to 36 months (including extensions).

Advantages:

  1. We’re a “One-Stop Shop” if your looking for an FHA or Agency permanent long term loan, but need short-term bridge financing
  2. Fast Closing enabling you to take advantage of expedited purchase needs or existing maturing loans
  3. Typically no exit fee if financing originates with the same Investor originating your long term  permanent debt.

Loan Structure:

1st Position Senior Debt

Amortization:

Interest Only (I/O), some amortization may be required after first two years of term.

Pricing:

Starting with a spread over 30-day LIBOR (typical spread ranges from 375 bps to 450 bps for MF and MHC) and ranging up to 12-14% depending on deal criteria.

Loan Fees:

Lender points ranging from .5-1% up to 3% depending on loan size deal criteria.

Broker points ranging from 1 to 3% depending on loan size deal criteria.

Application Fees & Due Diligence Fees:

Ranging from $3,500 up to 15k to 20k depending on complexity of deal, asset class, loan size and financial strength of Asset & Sponsor.

Term Commitments / Exit Fees:

Typically 3-6 month minimum Term Commitment with Exit Fees on case by case basis depending on complexity of deal, asset class, loan size and financial strength of Asset & Sponsor.

Borrower Recourse:

Typically non-recourse with standard carve-outs for environmental, bankruptcy, fraud and misapplication of funds, etc.; Partial recourse and/or operating deficit and completion guaranty may be required for properties undergoing more significant renovation.

 

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