Acquiring the financing needed to purchase or renovate a commercial property can take months when working with a traditional lender, and sometimes due to the condition, a bank or commercial lender will not consider loan options. This is where a hard money commercial bridge loan can step in and help. With a commercial bridge loan, you can close on the property quickly, which allows you the time needed to improve the property, then later be able to refinance into a long-term financing option.
Why Choose a Private Money Lender?
A traditional lender will refuse to provide financing on a commercial property for a variety of reasons. Some include:
- The property has a high vacancy and the lender requires you as the real estate investor to improve vacancy
- The property may be outdated or has features that no longer work that need to be repaired
- The lender cannot close in the timeline that the seller needs to close on
When you choose to work with a private lender such as Capital Fund 1, we will be looking purely at the asset and its potential to provide you with short term financing. This will allow you to close and work on improving the property so a traditional lender will be more willing to work with you. With a bridge loan from a private money lender, you also will not have to worry about invasive credit checks or financial history requests. Simply provide details on the property and what you plan to do with it. From there, our in-house team of underwriters will provide a loan quote based on the property’s value, not on you or your credit history.
What Types of Commercial Properties Do We Provide Financing?
We have financed a variety of commercial properties including offices, multifamily, industrial, storage and retail. We have helped investors purchase and fix up a property to resell and we have also helped investors who hold onto a property to lease. We have also worked with owner-buyer customers who needed private money financing before they could refinance with a traditional lender due to credit or necessity.
If the commercial property needs rehab dollars, we can provide funds for those improvements! This will free up the borrower’s cash for carrying costs and to complete more renovations and upgrades to the property. Examples of these improvements include:
- improving units in an apartment complex
- putting in tenant improvements to an office area
Additionally, we can provide cash-out refinancing options on currently owned properties to either put back into the property through renovations and upgrades or help you with other investment real estate projects.
Tucson’s Commercial Real Estate
Tucson has recovered from the great recession and has been growing, attracting people and businesses. This is in part due to the location of the University of Arizona, and also because Tucson can be a more affordable option for businesses than the Phoenix metro area. “Job growth has been much faster this year than it has in previous years, and during the third quarter both Phoenix and Tucson, and the state as a whole, saw significant acceleration in job growth,” said George Hammond, director of the Eller research center.
Live and Work in Tucson!
If you are planning to invest in commercial real estate or are looking to buy a commercial property for your own use, fill out our online loan application or give Capital Fund 1 a call today to learn about our commercial financing options.