Architectural illustrationWhat to send with a financing scenario.
The property, the purpose, the request and the exit. Organize the essentials before you send a scenario.
Read the guideBridge financing
Questions to ask about a bridge loan.
Five useful conversations to have when a shorter financing period is part of the plan.
Before discussing a bridge loan, understand the exit plan, capital needed outside the loan, written costs and maturity obligations. An extension or a particular closing date should never be assumed.
What must happen before repayment?
Translate the exit into actions. A resale might require improvements, preparation and a buyer. A refinance might depend on documentation, occupancy or a change in property condition. Identify those steps before focusing only on the desired closing date.
What happens if the plan takes longer?
Consider how additional time changes carrying expenses and available capital. Ask how the written documents treat maturity and any proposed extension. Do not assume an extension exists or is automatic.
What capital sits outside the loan?
Account for acquisition equity, improvements, ownership expenses and closing allocations. The loan request and the total capital needed are different numbers.
Which terms need to be understood in writing?
Review the amount, term, interest, fees, required reserves, prepayment provisions and maturity obligations in the actual documents. A website example is not a substitute for written terms.
Who coordinates the next steps?
Clarify the point of contact, supporting materials, title coordination and the requested timeline. Palermo’s initial conversation is designed to identify what a particular scenario needs, without promising a predetermined result.
General educational content. Actual financing and servicing requirements depend on the particular transaction, written documents and applicable review. This guide is not a commitment to lend or a statement of numerical lending criteria.
Discuss your scenarioRelated perspectives
