Bridge Loans & Interim Debt: Seize Opportunity in Days, Not Months

When Opportunity Won't Wait, Neither Should Your Capital

Secure Commercial Bridge Loans in as Little as 5-15 Days.

For commercial real estate investors, speed is leverage. While traditional banks analyze for months, the best value-add and transitional assets are gone in days. A commercial bridge loan is the definitive tool for seizing these time-sensitive opportunities, providing the rapid, flexible capital needed to acquire, reposition, and stabilize properties before your competition can even get a term sheet.

The Strategic Gap in Commercial Real Estate Financing

In the fast-paced world of commercial real estate, a fundamental misalignment exists between the speed of opportunity and the pace of conventional financing. Traditional bank loans, with closing timelines that often stretch from 60 to over 120 days, are simply unworkable for competitive acquisitions.^[1] This delay is not merely an inconvenience; it represents a direct financial loss in the form of missed deals, forfeited deposits, and squandered market momentum.

This is where Commercial Bridge Loans & Interim Debt provide a decisive solution. A bridge loan is a short-term financing instrument, typically with a term of 12 to 36 months, designed specifically to "bridge the gap" between an immediate funding need and a more permanent capital solution.^[3] This is not just a loan; it is a strategic instrument. It allows an investor to operate with the speed and certainty of a cash buyer, securing assets that are out of reach for those dependent on conventional financing.^[5] The ability to close quickly holds immense value for sellers, creating negotiating power that can lead to better acquisition prices. In this context, the higher cost of a bridge loan becomes a calculated investment in securing a superior overall deal—an opportunity that might otherwise be impossible to acquire.

At Clear House Lending, we understand that securing the right bridge loan is as critical as the decision to use one. As your strategic capital partner, we connect you to a vast network of lenders ready to fund your vision at the speed of opportunity.

How Commercial Bridge Loans Work: Speed, Flexibility, and Asset-Based Power

Bridge loans operate on a fundamentally different principle than traditional mortgages. They are built for speed and flexibility because they prioritize the potential of the asset over the historical financials of the borrower.

The Asset-Centric Philosophy: Your Deal is the Down Payment

The most crucial differentiator of a bridge loan is its reliance on asset-based underwriting. Lenders in our network focus primarily on the property's intrinsic value and future potential—its location, market demand, and its After-Repair Value (ARV) or "as-stabilized" value.^[1] This is a seismic shift from traditional banks, which are constrained by a backward-looking analysis of a borrower's personal credit history and global financials.

For an investor who has identified a phenomenal deal but may not fit into the rigid box of conventional underwriting, this asset-centric approach is the key that unlocks the opportunity. Our lenders invest in your project's future, not your financial past.

Loan Structure and Repayment: Designed for Transition

The structure of a bridge loan is a complete project financing toolkit, meticulously designed to align the lender's and borrower's interests around the successful and rapid execution of a business plan.

• Loan Term: Bridge loans typically have terms of 12-36 months. This provides a sufficient window to execute a transitional business plan, such as renovating a property, completing a lease-up campaign, or repositioning an asset in the market before securing permanent financing.^[6]
• Payments: Payments are almost universally interest-only.^[5] This structure is a powerful feature that preserves your capital for the project itself, minimizing carrying costs and maximizing cash flow available for renovations and operations during the crucial stabilization phase.
• Disbursement: Funds can be provided upfront for the acquisition, with additional capital structured as future draws or "holdbacks".^[1] These subsequent funds are released as you meet specific project milestones, ensuring renovation capital is available exactly when needed to drive the project forward.
• Exit Strategy: Every bridge loan is underwritten with a clear and viable exit strategy from day one. The lender's primary concern is how they will be repaid. This exit is typically achieved through either a sale of the newly stabilized property or a refinance into a long-term, lower-rate conventional mortgage once the property's value has been maximized.^[1]
• Prepayment Flexibility: A key feature of most bridge loans is the lack of a prepayment penalty.^[6] This provides maximum flexibility, allowing you to exit the loan and realize your profits or secure permanent financing as soon as your objective is achieved, without being burdened by the severe yield maintenance or defeasance clauses common in long-term debt.

This combination of features creates a symbiotic financial structure. The lender is incentivized to see the project succeed quickly to get their capital back with a high return. The borrower is given the precise tools and flexibility to make that happen. It is a partnership model focused on a single goal: rapid value creation.

At a Glance: Bridge Loans vs. Traditional Commercial Mortgages

Choosing the right financing is a strategic decision that must align with the mission for the property. A bridge loan is an offensive tool used to capture opportunity and create value, while a traditional mortgage is a defensive tool used to hold stabilized, cash-flowing assets for the long term.

Strategic Scenarios: When a Bridge Loan is Your Decisive Edge

A bridge loan is never the final destination; it is the essential vehicle for financing a property through a period of change. It is transformation capital, designed to fund an asset's journey from unstabilized to stabilized, from undervalued to value-maximized, or from uncertain ownership to clear control. Here are the scenarios where this tool provides a decisive edge.

Scenario 1: The Value-Add Acquisition

• The Situation: You find an underperforming multifamily or retail property available at a significant discount. It has been mismanaged, has high vacancy, and requires capital improvements. Its current cash flow is far too low to qualify for conventional financing.
• The Bridge Loan Solution: A bridge loan provides the capital for both the acquisition and the planned renovations (CapEx). The loan is not based on the property's poor historical performance but is instead underwritten on its projected "as-stabilized" value after your improvements are complete. This is a classic use case that allows savvy investors to acquire properties that banks would reject, fund the value-creation process, and then refinance into a permanent loan based on the new, higher valuation.^[2]

Scenario 2: The Time-Sensitive Closing

• The Situation: A prime, off-market asset becomes available, but the seller is a distressed fund or an estate that is prioritizing a quick, certain close over achieving the absolute highest price. They will accept a slightly lower offer if it can close in 30 days or less.
• The Bridge Loan Solution: The bridge loan acts as a "cash equivalent," giving you the power to meet the seller's aggressive timeline. By closing in as little as 5-15 business days, you can beat out competitors who are constrained by 60-day-plus financing contingencies, securing the deal at a favorable price.^[2]

Scenario 3: Property Stabilization & Lease-Up

• The Situation: Your newly constructed apartment building is complete, but it is only 50% leased. Your high-cost construction loan is maturing, but the property does not yet have the stabilized occupancy (typically 90% for 90 days) required by permanent lenders like Fannie Mae or Freddie Mac.
• The Bridge Loan Solution: A bridge loan is used to pay off the maturing construction loan. It provides the crucial 12-24 month runway needed to execute your lease-up strategy, market the property effectively, and achieve stabilization without facing default or a forced fire sale. Once stabilized, the property can be refinanced into an attractive long-term mortgage.^[6]

Scenario 4: Partner Buyouts & Debt Restructuring

• The Situation: You need to buy out a partner to gain full control of an asset, or a high-interest loan on your property is maturing and needs to be refinanced quickly. However, a temporary dip in occupancy or a recent credit issue prevents you from qualifying for a conventional bank loan at this moment.
• The Bridge Loan Solution: A bridge loan provides immediate capital based on the equity in the property. This allows you to facilitate the buyout or restructure the maturing debt swiftly, giving you the time needed to optimize operations, improve the property's financial performance, and then seek permanent financing from a position of strength.^[3]

Commercial Bridge Loan FAQs

1. What are typical interest rates and fees for a commercial bridge loan?

Interest rates for commercial bridge loans typically range from 8% to 13%, with origination fees between 2 to 4 points (a "point" is 1% of the loan amount). The final rate is determined by the project's risk profile, asset type, location, and the loan-to-value (LTV) ratio. The primary advantage of our network is that we create competition among lenders to secure the lowest possible market rate for your specific deal.^[18]

2. How much equity or "skin in the game" do I need?

Lenders typically finance up to 75-80% of a project's cost (LTC) or its as-stabilized value (LTV). As a borrower, you should expect to contribute 20-25% of the total capital required for the project. This contribution can be in the form of cash or, if you already own the property, the existing equity can often be used to meet this requirement.^[1]

3. Can I get a bridge loan if my personal credit isn't perfect?

Yes, this is a key advantage of bridge financing. While your credit history is reviewed, private lenders place far more weight on the quality of the real estate asset, the strength of your business plan, and the credibility of your exit strategy. A great deal with a clear path to repayment can often secure funding even if the borrower's credit score is less than perfect.^[2]

4. What is a "non-recourse" bridge loan and are they available?

A non-recourse loan is one where the lender's only remedy in case of default is the collateral itself (the property). They cannot pursue the borrower's other personal assets. Non-recourse options are available through our network, typically for lower-leverage loans (e.g., under 65% LTV), stronger properties with existing cash flow, and more experienced sponsors.^[6]

5. How quickly can Clear House Lending really get a deal funded?

While every deal has unique complexities, our streamlined process and direct access to lender decision-makers enable us to facilitate closings in as little as 5-15 business days after a complete loan package is submitted. This stands in stark contrast to the 2-4 month timeline commonly associated with traditional banks.

6. Why use Clear House Lending instead of going directly to a private lender?

The answer comes down to three critical advantages: Leverage, Access, and Intelligence.

• Leverage: An individual borrower approaching a lender has very little negotiating power. We bring a high volume of business to our lending partners, giving us the leverage to negotiate more favorable rates and terms on your behalf.
• Access: Many of the most competitive private lenders and family offices do not advertise to the public and work exclusively through a network of trusted brokers. Our platform gives you access to this hidden market of capital that you cannot find on your own.
• Intelligence: We have real-time data on which lenders are actively funding your specific deal type today. This market intelligence saves you weeks of wasted time approaching the wrong capital sources and allows us to position your project for a fast "yes" from the most appropriate lender from day one.^[1]