Bridge Lending Guide for Commercial Real Estate (CRE) Borrowers.

Facing a Looming Balloon Payment or Tight Lender Deadline?

With $957 billion in commercial mortgages maturing in 2025, many property owners are under pressure.

A bridge loan can help you stay in control of your investment.

 
What is a Bridge Loan?

Bridge loans are short-term financing solutions provided by private money lenders, tailored for CRE borrowers who need quick funding.

Unlike traditional bank loans, bridge loans deliver:

🏆Faster approvals

🏆Greater flexibility

🏆Higher approval rates

They’re perfect for urgent needs like maturing debt or time-sensitive acquisitions.

 
Key Features of Bridge Loans

🎯Loan Amount: $1 million to $60 million

🎯Term: 1-2 years

🎯Interest Rate: Prime + 2% (floating rate, tied to Prime or SOFR)

🎯Loan-to-Value (LTV): 50% to 70%

🎯Lender Fees: 1% at funding, 1% at exit (total 2%)

🎯Origination (1%): Covers underwriting and closing costs, deducted at funding (e.g., $100,000 on a $10M loan).

Exit (1%): Paid at repayment, ensures lender’s return (e.g., $100,000 on a $10M loan).

🎯Broker Fees: 0.5% to 2% (varies by deal complexity)

🎯Due Diligence Fees: $5,000–$20,000

Covers appraisals, title searches, environmental reports, and legal reviews.

Scales with deal size: $5,000 for small loans ($1M–$5M), up to $20,000 for large/complex deals ($20M–$60M).

Paid upfront, non-refundable.

🏢Asset Classes:

All CRE types (multifamily, hotels, assisted living, shelters, industrial, etc.)

💼Loan Types:

Bridge, refinance, acquisition, cash-out, construction, mezzanine, and preferred equity
 
Why Choose a Bridge Loan Over a Bank Loan?

✔️Speed: Private lenders approve loans in days, not weeks or months like banks.

✔️Flexibility: Customizable terms, such as interest-only payments or non-recourse options.

✔️Higher LTV: Borrow up to 70% of your property’s value.

✔️Large Deals: Ideal for loans over $50 million, including complex or hard-to-place projects.

✔️No Red Tape: Fewer regulatory hurdles mean faster access to capital.

Traditional banks are great for long-term financing but often move too slowly for urgent needs.

Private lenders—like family offices, debt funds, and REITs—fill the gap with speed and agility.

 
Who Provides Bridge Loans?

Bridge loans come from private money lenders, including:

💰Family offices
💰Debt funds
💰Insurance and pension funds
💰Private equity-backed firms
💰REITs

These CRE specialists often meet borrowers in person to design tailored solutions.

Free from banking regulations, they offer quick decisions and flexible terms.

 
Benefits for Borrowers

✅Fast Funding: Close deals or refinance debt in record time.
✅Floating Rates: Protection from fixed-rate risks in a volatile market.
✅Minimal Restrictions: Fewer covenants than bank loans.
✅Short-Term Relief: Bridge to long-term financing or stabilize a project.
 

How Bridge Loans Help

For Current Customers

☑️More Capital: Fund renovations, growth, or unexpected costs.
☑️Expert Advice: Work with experienced lenders beyond your usual advisors.
☑️Non-Bank Options: Access private credit while preserving bank relationships.
☑️Debt Relief: Refinance out of restrictive or maturing bank loans.

For New Customers

☑️Out-of-State Lenders: Tap into funding beyond local banks.
☑️Short-Term Solutions: Stabilize projects or bridge to long-term bank loans.
☑️Bank Pairing: Use banks for treasury services while leveraging private loans for speed.
 
Common Uses

🌟Maturing Debt: Refinance loans or mortgages due in 2025, including line-of-credit reductions.
🌟Acquisitions: Fund non-SBA deals, partner buyouts, or mezzanine loans over $5M.
🌟Investment Properties: Finance non-owner-occupied CRE.
🌟Construction: Support new projects with high LTV and fast funding.
🌟Asset-Based Lending: Provide working capital for contractors or manufacturers.
 
Why Act Now?

With $957 billion in CRE loans maturing in 2025 and rising interest rates, timing is critical.

A bridge loan can:

✔️Avoid costly penalties from missed deadlines.
✔️Buy time to secure long-term financing.
✔️Keep your investments on track.
 
Need fast, flexible CRE funding?

Contact Montgomery Lending to:

🏆Discuss your project or refinancing needs.
🏆Get a custom term sheet in days.
🏆Connect with private lenders who understand CRE.

Let’s secure your funding and keep your investments moving forward!

Needed for a Quote:

✔️Property Type: [e.g., Office Building]

✔️Location: [e.g., 123 Main St, Anytown, USA 12345]

✔️Property Value: [e.g., $1,000,000]

✔️Borrower's Credit Score: [e.g., 720]

✔️Borrower's Income: [e.g., $150,000]

✔️Borrower's Assets: [e.g., $500,000]

✔️Loan Purpose: [e.g., Refinance]

Optional Add-Ons (if applicable):

✔️Property Size: [e.g., 10,000 sq ft]

✔️Occupancy Rate: [e.g., 85%]

✔️Borrower's Debt-to-Income Ratio: [e.g., 30%]

✔️Borrower's Experience: [e.g., 5 years]

✔️Additional Details: [e.g., New roof installed last year]

Eventually will need:

✅Executive Summary
✅Picture of Asset
✅Sourced Uses
✅Historical/Future Financials
✅Borrower Real Estate Owned (REO)
✅Borrower Personal Financial Statement (PFS)
✅Closing Date