Multifamily Bridge Financing
We create flexible financing solutions that benefit your business with multifamily bridge loans. In any housing market there will always be a need for rentals. Approximately 31% of housing, or 43.9 million residences, is multifamily housing, according to the American Housing Survey and U.S. Census Bureau. Multifamily properties like apartment buildings and student housing can be a profitable option for real estate investors to consider. Multifamily buildings with five or more units can create positive cash flow for investors, especially when leveraging Wilshire Finance Partners’ creative and sage advice on value-add opportunities to create value.
What Is a Multifamily Bridge Loan and How Is It Structured?
Multifamily bridge loans provide financing for the purchase or renovation of multifamily real estate, such as an apartment building with five units or more. A multifamily bridge loan is a short-term or interim financing option, often used by borrowers until they secure permanent financing or sell off the underlying real estate. Multifamily bridge terms can vary depending on the loan type and lender. Wilshire Finance Partners multifamily bridge financing is from $500,000 to $10 million, up to 3 years.
Examples of transaction types:
- Purchase/Acquisition
- Renovation
- Rate & Term Refinance
- Cash-Out Refinance
- Bridge-to-Permanent Financing
Wilshire Finance Partners Multifamily Bridge Loan Structure
| Loan Amount | $500,000 to $10,000,000 |
| Term | Up to 3 Years |
| Rate | Fixed or Variable |
| Purpose | Purchase, Rate and Term Refinance, Cash Out Refinance |
| Lien Position | First or subordinate |
| Location | Nationwide |
When to Use a Multifamily Bridge Loan
When should you use a multifamily bridge loan? Wilshire’s nationwide bridge loan program is used for the purchase, rate and term refinance, or cash-out refinance of multifamily real estate. A bridge-to-permanent financing scenario (when you are taking a short-term bridge loan on your way to stabilization, then seeking permanent financing once stabilization is achieved) is a valuable option in any real estate investor’s toolkit, especially when time is of the essence. Knowing when to leverage short-term interim financing through a trusted financial partner can successfully keep your project on time and successful.
Use a bridge loan under the following circumstances:
- Tight Timelines
- Unstabilized Property
- Value-Add Opportunities
- Special Situation Lending
Benefits of Multifamily Bridge Loans
- Fast, Flexible Financing
- Certainty of Execution
- Easier to Obtain
- Close in 30 days or less
- Perfect for multifaceted transactions requiring expedited timeframes
While bank and agency-based loans offer permanent financing for some investors, there are many transactions where expedited timeframes are crucial to making the deal happen. Multifamily bridge loans provide fast financing and certainty of execution, especially when a transaction may fall outside of traditional lending parameters. For example, a multifamily investor seeking to acquire an apartment building may find themselves in a situation with multiple bidders and cannot afford to wait for permanent financing if they want to act fast. Bank or agency financing is not as nimble as a private credit bridge lender. A bridge lender can quickly expedite these requests and/or tailor the loan to meet the buyer’s needs.
Bridge loans are typically easier to obtain and can close faster than agency or bank loans. This is because bridge lending is not subject to the same market impacts and underwriting restrictions that agencies and banks have. Rules and regulations for traditional lenders ebb and flow with the economic tide. In an environment of economic uncertainty, like inflationary costs and talks of a recession, private, short-term capital sources, like bridge lenders, can fill gaps that traditional lenders cannot. The benefit a multifamily bridge loan lender brings to the table is the ability to provide quick and creative capital to keep your multifamily transaction moving forward and on track.
Wilshire Bridge Loans vs. Agency/Bank Multifamily Financing
|
Institution |
Underwriting Timeframe |
Minimum Amounts |
Term |
|
Bank/Agency |
120 days avg. |
$1 million + |
25 – 35 years |
|
Wilshire Finance |
15-45 days avg. |
$500,000+ |
Up to 3 years |
Build Your Bridge with the Best
Since 2008, Wilshire Finance Partners has specialized in multifamily real estate bridge financing delivering loans from $500,000 to $10 million with quick closing. If you have a multifamily deal you’d like to discuss, contact us at (866) 575-5070 today.
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