Miami acquisition bridge.

01 / The challenge

The initial challenge.

The hypothetical buyer has identified an investment residence and needs to connect acquisition financing with a realistic path to resale. The property is intended for business use, with no borrower occupancy. The financing discussion begins with the purchase contract, current condition and the work proposed after closing.

02 / The structure

The financing structure.

The example uses a $750,000 first-lien bridge loan against a $1,200,000 purchase price. A separate hypothetical $1,250,000 value estimate is shown for context; the leverage calculation uses the lower $1,200,000 purchase-price basis. Initial funding equals the full commitment. The buyer supplies $450,000 toward the purchase price, with closing costs, improvement costs and carrying costs funded separately.

LTV uses the explicitly stated property-value basis. LTC uses the stated total project cost. These sample ratios do not establish lending limits.

03 / Key considerations

Key considerations.

• Identify the scope and cost of planned work rather than treating the purchase discount as the business plan.
• Review title, property condition and the borrower’s available capital for acquisition and improvements.
• Test a resale plan against a slower timeline and the expenses of holding the property.