jesse994•19d agoMost Upvoted

Commercial bridge loans vs hard money, I switched after one deal

Tbh I used to think hard money lenders were the only way to go for quick flips in Phoenix. But last quarter I ran two deals side by side, one with a 12% hard money note and another with a 9.5% bridge loan from a regional bank. The bridge loan took 11 days to close versus 6, but the fees were $4k less and the prepayment penalty was way softer. What really sold me was the interest-only period, I paid $2,300 a month less while the rehab ran 8 weeks. Now I just use hard money for tiny loans under $100k where speed matters more than cost. Anyone else found bridge terms beat hard money once you hit a certain loan size?

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1 Comment

the_adam18d ago

Bridge loans only work if your bank knows you. First timer gets eaten alive.