Apartment Bridge Loans = Bridge Loans for Multifamily
Whether its a bridge loan for an apartment building purchase or a bridge loan for multifamily residential development re-positioning, most bridge loans take on the same characteristics. When one thinks about bridge loans they should be thinking of a short term loan that helps them span a gap.
The gap can be simply from distressed asset purchase to stabilization or the bridge loan may be used for a quick close until some more patient money with better terms can be put in place. Regardless of how one uses an apartment bridge loan or deploys bridge lending for multifamily residential, the same principals apply.
Bridge loans for apartments and multifamily residential have three general uses. They can be used to purchase distressed apartment building or distressed multifamily residential assets, or they can be used to re-position a formerly stable but now distressed asset or they can be used to stabilize debt as in when a bank offers the real estate investor/owner a short pay or lower balance payoff.
Bridge Loans for Distressed Apartment Building or Multifamily Residential Acquisition
Bridge Loans for Distressed Apartment Building or Multifamily Residential Acquisition are very standard in today's market. These loans typically carry a 75% LTV and 65% LTC requirement ... however, recent aggressive bridge loan products for apartment buildings and multifamily residential assets have gotten more aggressive allowing up to 80% LTC on total costs.
Total cost of a project is generally calculated as the acquisition cost, plus rehabilitation cost, plus an interest reserve to stabilization. These types of bridge loans are typically for apartment building and multifamily residential acquisitions that are aggressive and have the opportunity to provide above average returns.
Bridge Loans for Other Purposes
Bridge loans for other uses like reduced debt payoffs (short-pay) and re-positioning are also common. These loans have similar LTV and LTC requirements. Bridge loans for apartment buildings and multifamily residential developments have a variety of rates and terms.
Bridge loans are almost always interest only and can be for as short as 12 months or go as long as 3 years. To learn more about bridge loans for apartment buildings and multifamily residential developments contact DACL for rates and quote. Contact Michael Gross directly at 404-549-6756 or email info@dividendamerica.com. Apply online or Contact Us.
Bridge loans for apartment buildings and multifamily residential development are available in all 50 states and focusing on the markets and submarkets listed in the S&P Case Shiller Home Price Index and the surrounding secondary markets to those cities. We look for opportunities in: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.
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