Multifamily Bridge Loans – Rod Khleif
In today’s competitive market, real estate investors often need fast, flexible finance solutions to secure deals. That’s where multifamily bridge loans come in. These commercial bridge loans are designed to bridge the gap between the time a property is acquired and when long term financing is secured. While they typically come with a high interest rateand shorter repayment terms, they also provide speed and adaptability that can be crucial in hot markets.
If you’re looking to invest in multifamily properties and want to understand how a bridge loan works, this guide is for you.
A bridge loan is a short term loan that provides immediate capital to real estate investors. These loans are typically used to acquire, renovate, or stabilize a multifamily property before refinancing into permanent financing like an FHA or agency loan.
Unlike a traditional mortgage, bridge loans are quicker to close, offer more flexible underwriting, and often allow interest only payments to help investors maintain cash flow during the transition period.
Bridge loans are offered by bridge loan lenders who specialize in asset-based lending. These lenders prioritize the property’s potential and exit strategy over your credit score or debt-to-income ratio.
The process works like this:
Bridge loans typically fund 70 to 80 percent of the purchase price and may also cover some renovation costs. Once the improvements are completed and the property is stabilized, you exit the bridge loan through permanent financing.
Learn more from this podcast, “How Bridge Debt Killed the Commercial Real Estate Space.”
Bridge loans allow you to move quickly and seize opportunities without waiting on slow traditional mortgage approvals. Just be sure to have a clear exit strategy.
| Feature | Bridge Loan | Traditional Mortgage |
|---|---|---|
| Speed | Fast (10–30 days) | Slower (30–60+ days) |
| Term | Short (6–36 months) | Long (15–30 years) |
| Interest Rate | Higher | Lower |
| Payment Structure | Often interest only | Principal and interest |
| Ideal For | Value-add and time-sensitive deals | Stabilized, long-term investments |
FREE Guide for Funding Your Multifamily Purhcase
Download our in depth financing guide to learn how you can finance your multifamily investing deals.
FREE Complete Guide to FHA Loans
Want to refinance out of a bridge loan into long term financing with great tax advantages? Download our in depth FHA loan guide to learn how these loans work, their requirements, and why they’re a go to option for many multifamily investors.
FREE Complete Guide to Multifamily Syndications
If you’re a passive investor or looking to raise capital to fund a project using a bridge loan, our syndication guide is your must read manual. Learn how investors receive profits, how asset management fees work, and what separates good deals from risky ones.
FREE Cap Rate Calculator
Need to evaluate a deal before applying for a bridge loan? Use our free Cap Rate Calculator to instantly calculate cash flow and potential returns.
What is a bridge loan in real estate investing?
A bridge loan is a short term, asset-based loan used to quickly acquire or renovate a property before securing permanent financing.
Are commercial bridge loans risky?
They can be if you don’t have a clear exit strategy. They carry a high interest rate and short repayment terms, so planning is essential.
How long does a bridge loan take to close?
Most bridge loan closes happen in 10 to 30 days depending on the lender.
What are typical bridge loan interest rates?
Rates range from 7 to 12 percent, depending on the lender and risk level.
Can you refinance a bridge loan?
Yes. That’s the goal. Most investors exit the bridge loan using long term financing like FHA, agency, or bank loans.
Do I need a good credit score for a bridge loan?
Not necessarily. Bridge lenders focus more on the asset and business plan than on your personal credit score.
Multifamily bridge loans are powerful tools when used correctly. They allow investors to move fast, reposition assets, and unlock long-term value. But they’re not for every deal. Understand the risks, costs, and timelines involved—and make sure your exit strategy is airtight.
Whether you’re buying your first value-add deal or scaling a portfolio, having a solid grasp of bridge financing can give you a serious edge.
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