Stabilized Bridge Loans
Stabilized Bridge Loans Real Estate Investors In Need Of Flexibility
When markets change, sometimes your investment strategy changes with it. That’s why Asset Based Lending now offers bridge loans for stabilized properties that allow borrowers to reposition their investment and wait for market conditions to match their desired exit. These bridge loans are designed for investors who have recently completed a renovation or ground up construction but believe market conditions don’t favor their current exit strategy, so they decide to hold the property as a rental. Or maybe you’re an investor that’s looking at a turnkey rental property that you may eventually sell or refinance when mortgage rates come down in the future. Either way, you need an interest only loan without pre-payment penalties to bridge the gap.
Our 2-year debt service coverage loans can help bridge your financing for up to 24 months with no prepayment penalty, so you can exit the loan whenever you’re ready. With extensions available for an additional fee, we’ll make sure you’re properly financed from start to finish so that you have time to determine your final exit strategy and capitalize on your investment at the right time. We can provide stabilized financing for properties up to 20 units, using the lesser of either market rent or leased rent to determine the DSCR and deliver you competitive loan terms.
ABL is ready to help you bridge the gap between your hard money loan and permanent financing, or until you decide to sell your investment property. With competitive loan terms and flexible time frames, you’re in full control of your investment’s success. Contact us today to learn more about why ABL bridge loans are your best option for stabilizing your investment.
Bridge Loan Program Highlights
- Interest only financing up to 24 months
- No prepayment penalties
- Extensions available for a fee
- Available for up to 20 unit properties
- Portfolio loans available
- Up to 70% LTV
- Light doc program
- 680 minimum credit score
- 1.05x Min IO DSCR
- Close your loan in less than 2 weeks
Control Your Investment. Exit When You Want. We’re Here To Help.
Stabilize Your Investment With Up To 24 Months Of Interest Only Payments & No Prepayment Penalties
Bridge The Gap
No Prepayment Penalty
Peace Of Mind
Competitive Rates & LTVs
The ABL Difference
Calculate Your Monthly Cash Flow And DSCR
Stabilized Bridge Financing: Match The Market Conditions
Identify The Opportunity
Maybe you just finished a fix and flip project but market volatility has caused your potential sale price to drop below an acceptable level. Or perhaps you found a turn-key ready rental property but don’t want rising interest rates have made you wary of a 30 year loan with stiff pre-payment penalties. Have a conversation with one of our Loan Officers and see if our stabilized bridge loans can help your investment strategy.
Financing & Closing
We specialize in fast and flexible financing, closing your loan in less than two weeks and providing you with the best possible terms for your project. As a balance sheet lender in full control of our capital, we’re able to offer our borrowers access to lending programs that other hard money lenders can’t.
Payments & Servicing
Once your loan terms have been delivered and you’re ready to close, our team handles all the documentation and servicing. After closing, you’ll be responsible for your interest-only monthly payments as you work towards your long term exit strategy, and you can always reach out when you’re ready to either exit your bridge loan or are thinking of extending.
Match The Market
When market conditions are favorable for your desired exit strategy, it’s time to move. Payoff the loan if you choose to sell the property, or ABL can refinance you into a long-term rental loan if you decide to expand your portfolio with permanent financing. ABL has a number of flexible lending programs, and we always have our borrower’s best interest in mind.
Experience The ABL Difference
See why thousands of local real estate investors trust ABL to be their real estate financing partner.
How do these stabilized loans work?
These are hard money bridge loans, acting as 2-year temporary financing until you sell your property or refinance into long term financing. Maybe you just completed a rehab or new construction and were planning on selling, but sale prices have dropped lower than you’d like and you want to take advantage of the current rental market without committing to a long-term hold with substantial pre-payment penalties. These stabilized bridge loans are perfect for holding the property as a rental while waiting out volatile market conditions, allowing you to either exit the loan and sell the property with no prepayment penalties or refinance into a long-term hold if you determine that the asset is cash-flowing to your liking.
What are the requirements for stabilized bridge loans?
We take a doc-light approach to financing, not looking at income verification or tax returns. We look at FICO score, looking for a minimum of 680, and we look at previous experience. The more experienced an investor, or the more round trip deals with us, the better terms we can offer. The property also needs to meet our minimum DSCR requirement of 1.05-1.2 (depending on experience), which is determined using the lesser of market rent or leased rent. These loans are available for first time real estate investors, and can help new investors buy time to navigate the shifting real estate markets.
How long can I receive stabilized financing?
Our typical loan terms are for 2 years, with the option to extend the financing for an additional fee. We don’t charge any prepayment penalty, so you’re able to exit the loan whenever you feel ready without any exit fees.
What are the typical terms of a stabilized bridge loan?
While all loans are different and structured to meet the individual investor’s needs, the typical stabilized loan is a 2-year interest-only loan with rates starting at 10.5% and LTV up to 65%-70%. Loan terms are determined based on factors such as borrower experience, FICO score, and DSCR, using the lesser of either market rent or leased rent to determine your DSCR.
Are these hard money loans?
These are hard money bridge loans for investment property, and ABL is a hard money lender. We operate as a balance sheet lender, which means we hold the majority of our loans on our books, allowing us full control over our decision making and giving us the flexibility to provide the best possible loan terms for our borrowers.