Is there bridge financing on vacant commercial properties?

[Adam Craig]

I am currently doing the BRRRR method on commercial real estate. I have been raising funds for each deal paying my private investors 10%.

I got great traction on my lending pool for the first 10 or so investors. Now that I am out of my close network, I am getting a lot of interest when I post a deal but not much follow up after that. So I need to sharpen my syndication skills (I am essentially a rookie). 

Realizing that more funds are going to be needed on bigger deals I wanted know if there are many non bank lenders out there that do commercial bridge financing on vacant or nearly vacant properties and what points and rates might look like.

I have tried to get traditional commercial bank financing with some of my small lenders that take the deal after its stabilized, but it seems to be an uphill struggle. 

[Chris Cambridge]

Originally posted by @Adam Craig:

Originally posted by @Scott Wolf:

@Adam Craig, what types of commercial property, and what loan amount are you looking for typically?

I have done 5 so far - all office/retail mix.

Recent sizes have been between 20-30K sq ft. 

Total funds between rehab and purchase have been around 500K on most of the deals but I anticipate this going higher soon as I grow. ARV on my most 2 recent buildings were 990K and 1.4million so I am usually borrowing 50% ARV.

If you have a working concept that should give confidence for the deal. Rates are always a moving target but expect 10-13% at 50-65 LTC that can be potentially up to 60% ARV. Obviously the numbers call the shots. That's a small loan but there are options for it. Are you ready to get funding or exploring?