If you’re looking to make a move on an investment property like apartments, multifamily housing, hotels, etc a commercial bridge loan might be a clever strategic option. Commercial bridge loans are short-term financing solutions that will enable you to purchase or renovate a real estate property while you secure a permanent loan. If you partner with a top hard money lender, you’ll find that bridge loans can be tailored to suit your needs, making them suitable for a broad range of property types and therefore allowing you to diversify your real estate portfolio.
For instance, a commercial private hard money lender can offer you:
Bridge loans for commercial real estate. Diversifying your commercial real estate investment property can be a clever move, and office buildings are an option worth considering. Whilst offices took a hit during the COVID-19 lock-downs, businesses are returning to normal more and more, making offices a desirable asset once again. A commercial bridge loan from a hard money lender can enable you to purchase an office building or renovate one you already own in order to increase its value for sale or to increase its rental potential. Bridge loans can cover office buildings of all sizes, from smaller blocks to high-rise towers.
Bridge loans for light industrial properties. Another option for diversifying your real estate investment portfolio is a light industrial building. Industrial buildings are an enticing investment option for a number of reasons, such as the fact that, due to increasing demand, rental prices are rising. Additionally, industrial leases are usually long-term, meaning you’ll have a tenant secured for a good number of years and therefore ongoing stable and passive income. Industrial properties are also lower maintenance and can attract a large variety of tenants.
Bridge loans for mobile home parks. Mobile home parks are another great option for real estate investments. They are a stable money maker often delivering higher returns than other property types. However, many traditional lenders have strict requirements when it comes to mobile home park financing. A mobile home park bridge loan can be secured quickly so you can get a deal across the line fast while you wait for a permanent financing option. A hard money bridge loan for a mobile home park can be used to various investment strategies such as a buy and hold strategy, as well as construction or rehabilitation.
Bridge loans for self-storage facilities. If you’ve been keeping your eye on real estate investment trends, you may have noticed that the self-storage market is booming. Research suggests the biggest reason for this increase in self-storage investing is due to changes in consumer behavior and demographics, in addition to the fact that self-storage facilities are relatively resilient throughout all economic conditions. If you want to jump on this trend and add self-storage facilities to your investment portfolio, a bridge loan can help you move fast on a self-storage investment opportunity, stabilize an existing self-storage investment or allow you to rehabilitate a self-storage property before securing permanent financing or on selling for profit.
Bridge loans for warehouses. As e-commerce continues to grow, so does the need for warehouse storage, making warehouses a sound commercial real estate investment. Particularly in the wake of changing consumer habits and the aftermath of the pandemic which has seen a rise in online shopping, warehouses are making a huge comeback. Bridge loans can also be used to facilitate the purchase or renovation of a warehouse. This includes all warehouse types such as e-commerce fulfillment warehouses, distribution centers, manufacturing warehouses, technology warehouses, storage warehouses, climate-controlled warehouses, automated warehouses, food service warehouses, and public, private, and institutional warehouses. With many old and obsolete warehouses coming up for sale, you’ll also have the opportunity to pick up a warehouse at a great price, then rehabilitate the property to increase its value. Like with many other commercial property types, a warehouse bridge loan can help you get this done.
Bridge loans for retail properties. While many retail property types took a fall thanks to the pandemic, retail properties can still offer stable yields for investors. Investing in retail real estate includes rent, lease, managing or buying and selling property ranging from large scale shopping centers to small individual stores. Finding the right retail real estate investment opportunity can offer significant ongoing returns. Secure the purchase of a retail property or fund its renovation with a hard money retail real estate bridge loan.
Bridge loans for multifamily properties. There are a number of circumstances a commercial real estate bridge loan might be your best option when it comes to a multifamily property. For instance, you might require a bridge loan to purchase a multifamily property when time isn’t on your side. You could use a multifamily bridge loan to purchase an apartment building, for example, while you organize your down payment. Additionally, a multifamily bridge loan might be needed to cover a delayed capital contribution, or to help tide you over while you stabilize income in order to secure a government loan. Alternatively, a multifamily bridge loan might be required to fund the renovation of a multifamily property you’ve already acquired with permanent financing. This is a value-add strategy that will see you increasing your rental profit or significantly increasing the value of your property if you decide to sell. Multifamily family hard money bridge loans can be utilized for a range of property types including apartment buildings, student houses, seniors housing, and multifamily mixed-use housing.
Bridge loans for residential/commercial mixed-use properties. Investing in mixed-use property is increasingly popular for good reason. Investing in a multi-use property can lead to better long-term performance and greater returns. Plus, with an increasing preference for a walk-able lifestyle, living in areas containing mixed-use properties are in demand. A mixed-use property is a property that combines commercial and residential units, and, in some cases, even industrial units. This could be a main street model, which consists of buildings in a town center containing commercial and retail premises on the ground floor and residential on the first floor, or a development containing an apartment complex near restaurants and other local businesses. Another example is residential units coexisting in the same building as office spaces, as well as mixed-use hotels that contain retail stores, food, entertainment, and a gym. Hard money bridge loans can also be used to secure a mixed-use property while you wait to secure permanent financing or to allow you to rehabilitate a property and then sell. Short-term and with a fast turnaround, a mixed-use property bridge loan will mean you can take advantage of a lucrative deal before it’s too late. While it is usually easier to qualify for a mixed-use bridge loan compared to traditional financing, a hard money bridge loan lender will consider the potential cash flow of the mixed-use property.
Bridge loans for hotel/hospitality properties. If you own properties in the hospitality industry, such as hotels, motels, and resorts, or are looking to break into the market, a bridge loan can enable help you get the finance you need fast. Hotel bridge loans can cover the acquisition, construction, and renovation or rehabilitation of your hospitality investment. All types of hospitality premises can be secured with a hotel bridge loan from a private money bridge lender, including franchised hotels as well boutique hotels. Many new markets are opening up in the industry that facilitate hotel bridge loans. Specifically In states like Florida, Texas, North Carolina and South Carolina the hotel markets are a serious consideration for real estate investors.
Bridge loans for assisted living facilities and bridge loans for senior housing. With the baby boomer generation aging, now is a great time to consider investing in assisted living and senior housing facilities. It’s estimated that by 2030, two million Americans will live in senior care communities, which is double what it was in 2016. Identifying a sound investment in this space with value-add potential can be a strategic move that will enhance your real estate portfolio. Top bridge loan lenders can help you take advantage of an opportunity in the senior housing and assisted living markets, enabling you to purchase, refinance or rehabilitate an investment property.
Whether you’re looking to diversify your real estate portfolio, it’s important to do your research. Be sure to take a close look at the terms, conditions, and rates of commercial bridge loans by property type as well as search for the best nationwide bridge lender in your area or beyond.
If you’re ready to take the next step, get in touch with Alpha Funding Corp today. As nationwide private real estate lenders we specialize in commercial bridge loans for different property types, and our senior loan experts are ready to assist with a flexible commercial bridge loan tailored to suit your needs and the property type you’re investing in.
Contact Alpha Funding Corp now