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A multifamily bridge loan is a financial tool used by commercial property owners to bridge the gap between the instant they get the loan and the ability to immediately work on the property, which can be rehabilitation or stabilization prior to getting conventional long-term multifamily financing.

Ideally, investors who need to close on a multifamily property quickly, be it bankruptcy or foreclosure, can take advantage of bridge loans as they close fast, and are based more on the value of the property and not the income the property generates down the road. Even though each borrower encounters different circumstances, bridge loan requirements remain pretty consistent at about 65% of the property value, and a payoff date usually between 1 to 3 years, with the average about 12-24 months.

There are several components for investors to consider when searching for bridge loans, including:

• Short-term financing and flexibility: The largest benefit is speed. Some bridge lenders can expedite loans in under 30 days compared to typical loans that can take more than 90 days to fund. Once certain financial parameters are met, such as improvements to the property, the investor can quickly adjust to a permanent mortgage.
• Long-established banking relationships: Private bridge lenders rely on long-standing banking relationships, and in Fidelity Bancorp Funding’s case have access to private investment capital. A recent trend in loan underwriting is reflected in the way banks have become more risk averse and changed their practices for new loan requests. Many institutions prefer working only with existing borrowers or focus on property types perceived as low risk, such as medical facilities, warehouses, and distribution centers.
• Interest rate: Mortgage rates for bridge loans are generally higher as bridge lenders take on larger risk, such as liquidity, default and informational risks.
• Amortization: Most bridge loans are interest-only, with little or no principal amortization. The full principal amount is usually due at maturity, and negative amortization and zero-coupon notes can be an option in some cases.

• Collateral: Bridge lenders focus generally on underlying collateral, rather than creditworthiness.

What to Look for in a Bridge Loan Lender

#1 Reliability & Reputation

Finding a lending partner who is an established veteran in the business with a proven track record will be key for any investor. A reliable and reputable lender will eliminate headaches and risks for both parties by fast-tracking the loan, including creating documents and closing the loans in a short timeframe.

#2 Speed & Flexibility

Most conventional lenders such as banks or government agencies have rigorous underwriting procedures in place to monitor a loan, and therefore take about 60+ days to close a loan. The right bridge loan partner will help you close your deal in a matter of days or weeks.

#3 Expertise & Competitive Rates

In addition, an established bridge lender can support investors by adjusting to market forces, latest competitive interest rates, and correcting all issues quickly and with confidence. A flexible lender will make the credit box fit YOU and not the other way around.

Find Your Match:

As a 20-year veteran in the multifamily bridge loan business, Fidelity Bancorp Funding provides tremendous value-add to its investors, from understanding the microeconomic trends in the SoCal marketplace to long-standing banking and private investor relationships. This familiarity with the community and the ability to offer investors quick access to short-term bridge financing is critical, however, the long-standing relationships with banks has allowed the company to also provide long-term and permanent loans – a feature not offered by any other lender in the nation.

At Fidelity Bancorp Funding our rates start at 6.99%, we loan up to 75% of the value of the property, with loan amounts up to $10,000,000. Our origination fees range between 1-2 points depending on loan size and term, and our processing fees are $1,495 with loan terms of up to 36 months. Our loan officers can fund loans in under 5 days.

Fidelity Bancorp Funding presents you with an exclusive webinar:

Topic: Emotions are the enemy of wealth in real-estate – the difference between a salesperson and a business owner

Speaker: David Halpern of Mastery Consulting

When: 10:00 – 10:45 am on Monday, August 3rd, 2020 

Where: Zoom link: https://us02web.zoom.us/j/87473792059  

About the Speaker: David possesses the powerful, blended perspective of an experienced business coach and entrepreneur. As a result, he has had a tremendous track record of success in turbocharging the sales and profitability of organizations of all sizes, ranging from Fortune 500 companies to business start-ups.

David’s real estate client roster has included RE/MAX Champions, RE/MAX Champions Chino, RE/MAX CHAMPIONS North Fontana, RE/MAX Leaders, RE/MAX Time, RE/MAX Masters, RE/MAX Top Producers, Century 21 Primetime, Century 21 King, Century 21 Realty Masters, Century 21 Town & Country, Century 21 Dynasty, Berkshire Hathaway Golden, Cal American Homes, Keller Williams Pacific Estates, Keller Williams Whittier, Keller Williams College Park, Mainstreet Realtors, Coldwell Banker Ontario, Coldwell Banker Blackstone, Marqui Realty, D&A Investments, AFN Rancho Cucamonga, AFN Brea, OGI Irvine, Lincoln Mutual Downey, Vision One Tustin, Powerhouse Mortgage, Mark 1 Mortgage, Waterstone Mortgage, The Mortgage Phoenix Group, Hacienda Escrow, Arbor One Escrow, Everest Escrow, and Ticor Title.

We welcome the opportunity to partner with Real Estate Professionals to serve your clients’ needs with quick and accurate real estate financing advice.  Your clients will enjoy low rates and a variety of loan types; Residential, Multi-Family, Commercial, SBA and Bridge Loans.  You benefit from our dedicated loan officers and in-house processing teams to close escrow guaranteed.  Learn more: https://www.fbfloans.com/brokers-welcome/

Why Choose Fidelity Bancorp Funding ?

Our historically low interest rates. Our wide range of loan options; fixed rate, ARMs, Interest only, and Bridge Lending to increase the purchasing power to your clients. We customize solutions to address unique loan scenarios. Over 29 years in experience, $10 billion funded, and trusted by 10,000+ clients. We make it easy: One easy step, One form to refer your clients.

IF THERE IS A WILL, THERE IS A WAY!

Factors to consider when investing during the pandemic. Historically strong markets with fundamentally sound economy will recover faster than others. Great opportunities for investors are still out there for those who aren’t afraid to think outside the box.

1) Rental markets are strong – with high rental demand.

2) Section 8 might be a good option.

3) You can always increase rents down the road.

4) Real estate will outperform the stock market – real estate is relatively unaffected by the stock market volatility.

5) 10-Year treasury yields are unbelievably low.

6) The Federal Reserve cut its benchmark interest rate to almost 0%.

The bottom line is that this pandemic shall pass. If you have a good deal or are thinking of refinancing your investment property, contact us for advice regarding your next investment move. Call us today for a FREE loan scenario review 877.585.FUND (3863) email: info@fbfloans.com