Financing program

Bridge loans

A bridge loan is short-term financing, usually 12 to 36 months, used to buy or reposition a property until it qualifies for long-term permanent financing or is sold.

Bridge lenders focus on the business plan and the exit rather than on today's income alone. That makes bridge debt the usual tool for properties that are vacant, under-rented, mid-renovation or need to close faster than a bank can move.

What it is used for

Value-add acquisitions that need renovation before they stabilize
Properties in lease-up or with high vacancy
Closing quickly on a time-sensitive purchase
Refinancing out of a maturing loan while a property is repositioned
Recapitalizing a property when a partner exits

How it is typically structured

Term: Commonly 12 to 36 months, often with extension options
Payments: Usually interest-only
Renovation funds: Capital improvement budgets are often funded through a holdback and drawn as work is completed
Pricing: Higher than permanent debt, reflecting the short term and transitional risk

Terms vary by lender, property and borrower. This is general market information, not a quote or commitment.

What lenders look at

The business plan and the budget to execute it
A credible exit: refinance into permanent debt or sale
As-is value and as-stabilized value
Sponsor track record with similar projects
Liquidity to cover carry costs and overruns

What you will need

Purchase contract or current payoff statement
Renovation budget and scope of work
Current rent roll and operating history, if any
Business plan with stabilized pro forma
Sponsor resume, personal financial statement and schedule of real estate owned

Your portal checklist is generated from your deal, so you are only asked for what your file needs.

How DealRail places it

We stress-test the exit before the file goes out. If the refinance or sale does not pencil at realistic rates and values, we tell you before you spend money on third-party reports.

Common questions

How fast can a bridge loan close?

Private and debt fund bridge lenders can often close in two to four weeks once the file is complete and third-party reports are in. Timing depends on appraisal, title and how quickly documents are provided.

What happens if I cannot refinance before the bridge loan matures?

Many bridge loans include extension options, usually for a fee and subject to performance tests. That is why we look hard at the exit plan and timeline before placing the loan.

Is a bridge loan the same as a hard money loan?

The terms overlap. Hard money usually refers to short-term private loans underwritten mostly on the asset. Bridge loans cover a wider range of lenders, including debt funds and banks, and are often larger and more structured.