GMax Partners         We Finance Mega Projects I Infrastructure I Humanitarian   

Primary Market Advisors I Project Finance I Economic Development I Emerging Markets

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Originators  Check Writers

  • Fix & Flip 1-4 Units...$200,000 to $5M
  • Ground-up.....................$200,000 to $5M
  • Multi-Family Bridge..........................<$3M
  • Multi-Family Term.............................<$3M
  • Stabilized Bridge....$200,000 to $2M
  • Rental Home.............$200,000 to $1M
  • Rental 2-4 Units.................................<$2M
  • Rental Portfolio...........$150,000-$50M 

GMax Commercial Finance Brokers

  • Commercial Rehab........................>$2M
  • CRE Stabilized Bridge..................>$2M
  • Note Purchase Finance...............>$2M
  • Commercial Bridge up to....<$250M

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Commercial Bridge Loans

What Is A Bridge Loan?

A bridge loan (BL) is a short-term loan for funding real estate transactions.  Borrowers typically use bridge loans for an “acquire and improve” strategy. Here a commercial developer uses the proceeds to purchase a distressed property (or a property owned by a distressed borrower). Once rehabilitated, the owner can sell the property or retain it for commercial rental income or owner occupancy. 

An interim loan, a commercial mortgage bridge loan (CMBL) provides financing while the borrower waits for long-term arrangements. A bridge loan differs from conventional construction loans because bridge loans are asset-based. They also have higher interest rates, shorter terms, and easier access.

While banks typically source construction loans, a bridge loan usually comes from private money investment funds and private lenders. we arrange CMBL starting at $5 million. Since bridge loans typically require less documentation than conventional commercial loans, they are a good choice for an opportunistic purchases that require quick closings. 

Effective Use Of A Bridge Loan

Using CMBL effectively requires speed, precision, expertise and a properly formulated exit strategy.  We work with clients, its borrowers, to save them time, money and reduce transactional risk.

Commercial property investment is a complex, multi-faceted process. Bridge loans (also called commercial mortgage bridge loans, bridge loans, bridge financing, and construction bridge loans) are often a necessary tool for quickly taking advantage of a new opportunity. If you want to maintain your place in a sale chain, purchase commercial real estate below market value or fund commercial property development, CMBL allows the project to progress rapidly.  Higher interest rates make a properly formulated exit strategy a critical factor in the successful use of CMBL

Property Types

We broker high-end, commercial bridge loans for many types of properties, including, but not limited to:

  • Multifamily
  • Hotels
  • Mixed Use
  • Office Buildings
  • Shopping Centers
  • Industrial
  • Storage
  • Hospitals

CMBL are applicable for most types of commercial real estate, including properties that are in default, have an inadequate lease rate, need substantial rehabilitation, or that are not likely to stay on the market for long.

Bridge Financing Characteristics

A bridge loan has certain well-defined characteristics. They are usually interest-only loans, and common practice is to refinance a  BL with a take-out loan (i.e., a long-term, permanent mortgage).  Bridge loans are asset-based, meaning they are fully collateralized, either with the property that is the subject of the loan, and/or other in combination with additional assets as required by the funding source.  As detailed below, CMBL require a larger percentage of borrower equity than commercial construction loans.  This helps protect lenders from the higher risk associated with commercial mortgage bridge loans.  Because bridge financing is asset-based, it requires less underwriting than other real estate loans. For this reason, it can receive approval and funding much more quickly than a typical commercial real estate loan.

You can use BL proceeds in various ways beyond construction. These include acquisition, rehabilitation, stabilization, additions, higher occupancy rates, repurposing or other purposes.  You can purchase raw land with BL funds as long as the land will be improved (i.e., infrastructure, subdivision, etc.).  Commercial mortgage bridge loans also apply to properties already owned by the borrower. Then the borrower can improve or refinance the property.

Other Considerations

Certain considerations factor into the decision to apply for a BL.  For example, a CMBL is a good alternative if long-term financing is unavailable, due perhaps to the borrower’s poor credit rating or insufficient net worth. The successful use and repayment of a bridge loan can serve to boost borrowers credit rating, making other types of loans more accessible. You can also use bridge financing when the details of a project and or the management team are not yet specified, but the developer wishes to acquire the property before someone else beats him to the punch. Distressed properties that banks will not finance are a natural fit for bridge loans.  Upon rehabilitation, the commercial mortgage bridge loan is taken out with long-term financing.

Terms For Bridge Loans

A BL typically matures in 12 to 18 months, although longer terms are available for additional fees.  Bridge financing is typically interest-only. Interest rates range between about 8.99% to 14% (fixed or variable), and typical lender origination fees for commercial mortgage bridge loans are usually 2% to 4%.

Additional Terms

  • Prepayment Penalties:  Some CBLs have no prepayment penalties, while other lenders insist upon some sort of prepay penalty. Often this can be a 6-12-month lockout, the borrower must pay 6 to 12 months of interest payments minimum, less the interest already paid for prepaying early. Alternatively, the prepayment penalty can be a straight 1% to 2% of the remaining mortgage balance if prepaid within certain defined intervals.
  • Post-Rehab Valuations:  Sometimes, the post-rehab value determines the size of a BL. Otherwise, the current value of the property determines the loan size.
  • Recourse/Non-Recourse: BL may have non-recourse and bad-boy carve-outs. In other words, borrowers with troubled credit history may have a recourse clause.  However, BL are recourse in most cases.
  • Reserves: Potential lender may require up-front reserve for operating expense shortfalls, tenant improvements, leasing commissions, and other reasons. Ongoing reserves may become necessary for insurance, property taxes, and replacement of building components.
  • Security: BL requires a first mortgage lien and an assignment of the rents.
  • Markets: CMBL available primary and secondary Metropolitan Statistical Areas. Tertiary markets are evaluated on a case-by-case basis.

Commercial Bridge Loan Metrics

Lenders evaluate certain metrics when underwriting bridge loans, including:

  • LTC: The maximum loan-to-cost ratio is usually around 80%.
  • LTV: loan-to-value maximum ranges from 60% to 75% of the property’s after-repair value
  • Debt Yield Ratio: Typically, there is no minimum debt yield ratio.
  • DSCR: Typically, no minimum debt service coverage ratio, but some lenders require a DSCR of at least 1.20.

Bridge Financing Risks

The goal of CMBL is provide interim financing as a stepping stone to permanent commercial financing. When necessary, we fund construction bridge loans for large multifamily apartment projects, retail shopping centers, and a host of other commercial real estate market segments. Commercial real estate bridge loans tend to have 50%-60% LTV, depends on assets and other collateral.

Closing within 10-30 days of a term sheet is common. BLs provide companies seeking longer-term financing with a substantially greater degree of flexibility.  Of course, a bridge loan has higher rates, higher fees in the form of points, and shorter terms than standard commercial real estate loans. That said, we can do terms as long as 3 years depending upon the specific deal.

Generally, commercial mortgage bridge loans rely on take-out financing such as permanent debt or the eventual sale of the subject property, the availability of which may not always be assured.  However, we are experts at securing just the right bridge loan financing terms for the specific project and its specific needs, requirements and often its deadlines.

Borrower Qualifications For Commercial Mortgage Bridge Loans

Bridge Loan Rates

CMBL are for large-scale projects. Accordingly, the most important qualifiers are annual net operating income and the debt service coverage ratio (DSCR). Total gross income minus tax and insurance, and utilities, repairs, maintenance costs, and vacancy factors. Your net annual operating income needs to cover minimum of your BL carrying costs.

Additional Qualifications

Another consideration is BL usually cannot exceed the total net worth of the applicant. CMBL lenders look at financial statements for all the principals and guarantors. With this information we determine the collective net worth of all applicants. Lenders often require you demonstrate appropriate cash reserves to cover key contingencies, such as replacement reserves on apartment complexes.

Alternatively, the lender may hold back a portion of the commercial bridge loan proceeds as an interest rate reserve. This will service monthly interest payments until the subject property generates cash flow. We do not believe in making our clients run unnecessarily complex administrative obstacle courses. Our goal is to facilitate the capital from our funding sources to your project, not to maximize lenders’ profits. We cannot understate the importance of finding the right BL.

Borrower Creditworthiness

CBL providers evaluate creditworthiness, only to a limited extent because loans are asset-based. Some typical borrower qualifications for CBL are:

  • Minimum Credit Score: While there is no definitive minimum credit score most $10+ million bridge loans require decent credit score, above 720.
  • Net Worth: The lender will want to see a 1:1, or better, net-worth-to-loan-amount ratio. For instance borrower has net worth of only $5 million, the change that he’s going to be able to close a $40 million commercial loan is slim to none. This ratio, however, can lessen as loan size increases.
  • Documentation: Lenders require much documentation, including:
  • Credit report
  • Tax return
  • Resume
  • Financial statements from the previous property owner
  • Ren
  • Lease schedules
  • Budget
  • Detailed construction budget (if the bridge loan is a construction loan)
  • Schedule
  • Exit strategy

However, bridge loan documentation is less than bank loans.n Accordingly, bridge loan can close more quickly.  I've seen application to closing in  10 days.

Exit Strategies For A Bridge Loan

Commercial bridge loans are short-term, so a viable loan exit strategy is essential.  Typical exits for bridges are, sale of property, refinance or payoff.  Whichever exit you choose, you need roadmap in loan application. documentation.  Assets America has a reputation for providing clients with a tangible, strategic advantage when preparing loan exit strategies.

CBL are a short-term solution.  A viable BL exit strategy at the outset is a foundational part of the application process. The borrower may redeem bridge loan at sale of the property, refinance or cash. 

Sources Of Commercial Mortgage Bridge Loans

Banks rarely engage in the commercial bridge loan market.  Rather, private money funds dominate the market. They come from accredited investors and institutions that invest in real estate projects and commercial real property.  Private money funds do not have to observe bank regulations. Examples include reserve requirements, due diligence and so on. Accordingly, they provide substantially more flexible lending to developers seeking a bridge loan.

ARV (After-Repair-Value)

A property’s estimated value after completion of all repairs and upgrades. ARV is used to develop suitable exit strategies


The process of paying off a debt over time via incremental payments of principal and interest; literally “to kill off” the loan principal

Asset-Based Loan

A loan that uses accounts receivable and inventory and other balance sheet assets as collateral

Asset Class

A group of investments with similar characteristics, that also function similarly and are subject to similar market forces

Conduit Loan

Commercial mortgage backed security

DSCR (Debt Service Coverage Ratio)

Also called the "debt coverage ratio" (DCR), it is the ratio of cash available for debt servicing to interest, principal, and lease payments


A means by which borrowers can be released from a mortgage by substituting a portfolio of U.S. Treasury backed securities for collateral

Exit Strategy

The method by which a venture capitalist or business owner intends to get out of a debt or loan


The “London Interbank Offered Rate” is an index used to determine the cost of various variable-rate loans, including in the US; it can be found in the Wall Street Journal

Non-Recourse Loan

A type of loan secured by collateral, typically property, where the borrower is not personally liable in the event of default.

Origination Fee

A type of loan secured by collateral, typically property, where the borrower is not personally liable in the event of default.

Transactional Risk

The risk associated with unfavorable moves in a currency between the time a deal is agreed and the time the deal is settled

Yield Maintenance

A type of prepayment fee that lenders impose on borrowers to reimburse the lender for any loss of interest caused by prepaying a loan

FAQs For Commercial Bridge Financing

What is bridge financing?

These financing packages are short-term commercial real estate loans, lasting typically between 6 months and 3 years.

Why do borrowers use commercial mortgage bridge loans?

Bridge loans substitute long-term mortgages when the borrower needs financing fast. Usually, loans enable renovations and repairs. They come in handy when a property has low occupancy rate or borrower will need time to raise credit score before securing long-term financing.  if you have situation that warrants bridge financing.

We offer CMBL starting at $10 million with no limits.

What is an open bridge loan?

An open bridge loan doesn't have established exit, nor repayment date. Because they're riskier for lender and borrower, they have higher interest rates.

What is a closed bridge loan?

A closed bridge loan has an established exit and specific repayment date. Clear exits produce favorable interest rates.

What kinds of property can I use bridge loans for?

Bridge financing may apply to numerous types of real estate:

  • Storage Units
  • Hospital Buildings
  • Hotel Buildings
  • Industrial Parks
  • Master Planned Communities
  • Mixed-Use Development
  • Multifamily Properties
  • Office Buildings
  • Shopping Centers

How long does it take to acquire bridge financing?

Because CMBL provide rapid financing solutions, potential borrowers can often receive 48 hour decision. However,  we sometimes reach an initial decision over the phone in 15 minutes. Borrowers receive a formal offer within two weeks and financing begins within four weeks.

Can I obtain financing with poor credit?

Possibly. If potential borrowers have less than good credit, they may reduce risk with significant equity or collateral and a solid, highly-feasible exit strategy.

What can I expect in terms of bridge loan rates?

Often rates hover close to 2% more than their long-term counterparts. However, the rates primarily depend upon LTV, equity, and the exit plan.

Construction Loans

Purposes And Types Of Commercial Construction Loans

Different types of commercial construction loans  for a variety of purposes.


Commercial construction loans enable borrowers to build new commercial properties. They also reconstruct, rehabilitate and upgrade existing commercial properties.

  • Multifamily Loans
  • Office Building Loans
  • Hotel Financing
  • Hospital Building Loans
  • Mixed-Use Development Loans
  • Industrial Park Loans
  • Master Planned Community Loans
  • Several more

Multifamily, mixed-use development, hospital building, industrial construction, hotel construction, or any other commercial building loan, we are one of the finest choices you could possibly make for successfully closing your construction loan.  To arrange for your commercial construction loan starting at $20 million

Types of Commercial Construction Loans

Commercial construction loans can be categorized by type, as follows:

  • Land Development Loans:  These are risky loans in that raw land will only collateralize a small percentage of value of developed land. Therefore, borrowers often need to provide additional assets as collateral. Lenders look for developers with solid track records before granting thesef loans.  You can use loan proceeds to clear land, install infrastructure (i.e., water, sewer, power), subdivide the land, and so forth.
  • Acquisition & Development Loans:  These loans cover the purchase cost and development of raw or partially developed land. Proceeds apply to any necessary improvements before new construction begins.
  • New Construction Loans: Are short-term loans, usually interest-only. The term is up to 18 months, but the lender might grant extensions to cover additional fees. Construction loans can be set up as revolving credit lines to fund separate construction loan stages, separate properties in a multi-phased construction project.
  • Bridge Loans: In some situations, a developer needs construction funding while they still owe money on a previous project that has not yet sold.  A bridge loan is for this circumstance. The loan may require a lien on the for-sale property to act as collateral for the loan.  When the construction is rehabilitation rather than new construction, the existing property can also serve as collateral.  Bridge loans are also temporary. Terms are usually for a year or less, though longer terms can be negotiable.

Types of Commercial Construction Loans (Continued)

  • Mini-Perm Loans: Mini-perm loans are temporary loans. They typically follow completion of construction project and issuance of a Certificate of Occupancy for building. Mini-perm loan settles any remaining balance on a construction loan. Remains in place till property stabilizes and generates income, usually two to three years beyond the initial construction loan.
  • Takeout Loans: permanent mortgage on commercial construction project that replaces the relatively short-term financing, mini-perm loan. We provide financing from commercial construction loan through mini-perm loan to takeout loan in a seamless and uninterrupted sequence.
  • Mezzanine Loans:  Mezzanine loans are a mechanism to add financing to an existing construction project. It adds debt to the capital stack through subordinated debt that increases the borrower’s leverage. A mezzanine loan miy increase borrowers leverage from 70% loan-to-cost (“LTC”) to an 85% LTC. Mezzanine loans charge higher interest rates and may have additional restrictive terms.

How Do Commercial Construction Loans Work?

We fully understands the characteristics of short-term commercial construction loans, along with their many moving parts and complex deal structures. Our firm understands the needs of both our borrowers and funding sources. This helps us negotiate the best loan terms for clients.  Terms include the maximum leverage for the borrower and interest rate, repayment terms, and many other factors. 

By time loan closing, we will have negotiated critical understandings. Examples include property insurance and construction contract between the developer and lender. The contract specifies how the developer can draw loan funds, subject to the architect’s sign-offs and lien waivers. The contract commits both sides to complete the project, under the terms of the contract.  The end goal is the receipt of the Certificate of Occupancy (CoO), which satisfies the borrower’s requirement for the last loan installment and the lender’s requirement for sufficient collateral to protect its investment. It’s only after the CoO is issued and the property is leased to stabilization (typically 95% leased) that the property reaches its full liquidation value for purposes of collateral.

What are the Requirements for a Construction Loan?

Banks are typically the primary source of commercial construction loans.  They underwrite these loans by examining a large number of data points, including project metrics and the documentation. Usually, the representative brokerage firm prepares the borrower’s documentation. The lender must weigh a host of factors. For example, these include:

  • The project’s most current proforma just prior to loan submission
  • Local market conditions
  • The construction budget
  • The history of the development team
  • The financial capacity of the loan guarantors

Any special project-specific risks undergo careful review and consideration. 

Metrics for Commercial Construction Loan Underwriting

Lenders will underwrite the commercial construction loans using a variety of information. For example, important metrics include:

  • Loan-to-Cost Ratio: LTC ratio equals the commercial construction loan amount divided by estimated total project cost. Typically, commercial construction loans have an LTC between 70% and 90%. The remainder of the funding comes from the borrower’s equity.
  • Loan-to-Value Ratio: LTV ratio equals the fully disbursed construction loan amount divided by estimated value of the property when complete.  This value is close to 70% but can be higher for SBA-guaranteed loans.
  • Debt Service Coverage Ratio: DSCR equals the proforma net operating income of proposed property divided by estimated annual interest and principal payments on the permanent takeout loan (not the commercial construction loan, is interest-only. Typical DSCR values for commercial construction loans can exceed 1.25.
  • Profit Ratio: The projected profit ratio equals the completed property’s estimated profit divided by the estimated total cost. Lenders desire a projected profit ratio of 20% or greater. Lenders requires a decent profit ratio to have confidence borrower has sufficient motivation to complete the project.
  • Net Worth to Loan-Size Ratio: This ratio is the developer’s net worth divided by the commercial construction loan amount. Look for a value greater equal to or greater than 1.00, since a lower value would mean the developer had insufficient resources to cover the loan in a default.


Putting together a loan application for commercial construction financing requires far more than just filling out a form.  The borrower, working with its professional representative, also needs to assemble and present full documentation. For example, these include:

  • Business plan
  • Earnings projections
  • Contractor’s estimates
  • Financial documents, both personal and business

A business plan contains enormous amounts of technical and financial data. For example, these include:

  • Site location
  • Property type (retail, residential, mixed-use, etc.)
  • Feasibility studies
  • Building size
  • Number of stories
  • Unit sizes
  • Mechanical plans (plumbing, electrical, ventilation, floor plans, finish standards, etc.)
  • Amenities
  • Parking
  • Signage

Commercial Loan Agreements

If a borrower and lender agree on commercial construction financing terms, they sign a loan agreement, memorializing all of the terms. The agreement includes a disbursement schedule. Specifically, this schedule specifies how and when loan funds become available to the borrower. It also includes a discussion of how to handle change orders.


Lenders require loan-in-balance (LiB) provisions requiring that the unfunded loan is sufficient to cover costs to complete the project. In other words, the provisions help ensure that the loan remains in balance. A loan agreement’s LiB provisions discuss the hard and soft costs of the project, plus project’s allocated equity and secondary loan resources. Often commercial construction budget includes a contingency account for when costs change in order to maintain the loan’s balance. Change orders are a common contingency that often arise during a commercial construction project. If the commercial construction loan becomes significantly unbalanced, an LiB provision might allow the lender to place the loan into default status.




Commercial & Industrial Loans (C&I loans) from $10 million. C&I loans are for businesses rather than individuals. They provide capital expenditures, working capital and legitimate business financing requirements. C&I loans are usually backed by non-real-estate collateral.they provide short-term financing.

In this ultimate guide, we cover:

  • CRE Loans vs C&I Loans
  • Pros and Cons
  • Types of Lenders
  • Types of C&I Loans
  • Online Resources
  • Glossary of C&I Lending Terms
  • Related Articles
  • How Assets America Can Help

We Offer C&I Loans

We invite you to contact us today to explore a competitively priced C&I loan. Whether you need working capital, new equipment, or some other requirement, we will be happy to work with you. We can do C&I financing up to 100% LTV; this depends of course on your financial qualifications and the age of the asset!  


The Differences Between CRE Loans And C&I Loans

CRE loans and C&I loans have in common the fact that they are made to businesses. But there are several differences between the two.


Commercial Real Estate Loans 

CRE loans are for real estate, typically to build/acquire income-generating properties such as hotels, apartment buildings (multifamily), office buildings, and retail stores (shopping centers). The volatility of real estate makes CRE loans somewhat more difficult to obtain than C&I loans.

Both commercial real estate loans and C&I loans can overlap, as when equity from refinancing an existing asset loan (a C&I loan) funds a rental-property investment (a commercial real estate loan transaction).

Commercial real estate loans have these characteristics:

  • They are exclusively for the acquisition, refinance, and construction of commercial real estate.
  • CRE loans typically have lower LTV values than home mortgages.
  • Commercial Real Estate loans are often adjustable rate or include balloon payments.
  • CRE Loans can extract equity from an existing property for additional real estate investments.
  • Commercial real estate short-term loans are typically replaced by mini-perm and takeout loans (permanent commercial loans).


C&I Loans 

Commercial and Industrial loans are applicable to numerous business sectors. For example, these include:

  • Retailers
  • Manufacturers
  • Industrial companies
  • Professional firms
  • Health-care providers
  • Hospitality companies (hotels, motels, etc.)

C&I loans also have these characteristics:

  • Loans are for capital expenses and operations, such as hiring workers, filling seasonal revenue gaps or purchasing equipment.
  • C&I loans may be used for construction activity (but are not collateralized by real estate), although commercial real estate loans are more appropriate for this purpose.
  • C&I loans are typically not secured by real estate collateral but may be secured by other assets such as equipment, accounts receivable or future credit card receipts.
  • Unsecured C&I loans may require a blanket lien that exposes the assets of the business owner to legal claims upon default.
  • C&I lenders, lacking the backing of real estate collateral, must closely monitor borrower cash flows and operations, looking at financial ratios like receivables aging and inventory turnover.
  • Commercial and Industrial loans may be lump sums or revolving lines of credit.
  • C&I short-term loans are frequently granted without the expectation of eventual replacement by a takeout loan, such as in commercial real estate loans.







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