Bridge Financing (Fastest Loans)

Note – This program is not recommended for long term situations. It is expensive and should only be used when money is needed in a hurry and should be replaced by other, more conventional loans as quickly as possible.

  1. This Lender is a private money lender and is basically real estate oriented. They understand and prefer real estate as collateral for their loans.
  2. Loan amounts can be as low as $250,000 and up to $25 Million or more.
  3. Loan amounts can be up to 65% of the “quick sale” value of a property which means that, a property may appraise at $10 Million but, if its quick sale value is only $8 Million, they will only loan $5.2 Million.
  4. The interest rate will be between 1.00% to 1.25% per month (12% to 15% per year) to be fixed according to the contemplated risk which will be determined by our Lender after completion of their due-diligence.
  5. In addition, in lieu of equity, a 7% to 10% “premium” will be added to and included in the loan amount to be repaid at the end of the term. What this means is that, if you wish to borrow $1.0 Million net, the loan amount must be for ($1.0 MM x 1.07 =) $1.07 MM and the “premium” will be deducted as pre-paid interest from the loan proceeds at closing. The monthly interest, however, will be calculated only on the base loan amount and not on the “premium.”
  6. The loan term may be up to three (3) years and it may be extended if desired.
  7. In addition to the above “premium,” costs and fees required in processing this loan are as follows:
    • A modest, non-refundable Processing Fee must be paid to SANDBERG upon receipt of Lender’s Letter of Interest. The amount of the Processing Fee will depend on the size of the loan and its complexity;
    • There are also 6 “points” (i.e., 6.0%) that must collectively be paid to our Lender and ourselves/Sandberg, $5,000 – $10,000 of which is payable to our Lender upon acceptance of their Letter of Interest which can be delivered within only a few days. These funds will be used to pay the Lender’s attorney’s fees in drafting the Commitment;
    • Please note that there is NO COMMITMENT FEE connected with this Program;
    • 3% will be due to the Lender, paid out of proceeds at closing;
    • 3% will also be paid to SANDBERG as its Professional Service Fee out of proceeds at closing.
  8. The Borrower will also pay for all other costs connected with the loan in addition to the aforesaid fees including but not limited to surveys, title work and legal expenses of both the Borrower and the Lender, all if and as required.
  9. Personal guarantees are ALWAYS required.

These terms and conditions are, admittedly, tough, i.e., “HARD MONEY”, but this Lender has the capacity to close loans within only 7 to 10 days after completion of their due-diligence.

Note – The above outline is not to be construed as a commitment of any kind. Terms and conditions may vary from project to project and can only be determined by the lender which will be confirmed in the lender’s own commitment. Terms and conditions are subject to change without notice.