One commercial loan product that has become increasingly popular among investors and developers is bridge financing.

In your experience, what situations truly justify using bridge financing instead of waiting for permanent debt?

Quote from @Tracy Thielman: In your experience, what situations truly justify bridge financing versus waiting for permanent debt?

Lenders are underwriting the takeout as much as the bridge; the timing, metrics and realistic capital sources matter more than the headline plan. 

Quote from @Pierre Guirguis: Portfolio execution can absolutely work here, but it’s very detail-dependent, especially when it’s stepping in midstream on a construction deal.A few things would matter right away:• current as-is and projected stabilized value• remaining construction scope and budget• in-place debt and timeline pressure• whether this needs to close as a true portfolio hold or a bridge-to-permSanity check all you want!!

.• From a flexibility standpoint, I’d personally avoid moving from cash → illiquid equity → variable-rate debt unless the HELOC is already open and unused.A middle ground I’ve seen work well:– Keep auction-ready cash– Open a HELOC now while income and credit are clean– Use excess cash selectively where the return clearly beats your cost of capital– Treat HELOC funds as contingency or bridge capital, not core strategyAs for finding 6% private money at 74% LTV, that usually comes from existing relationships, not marketplaces.

This typically includes hard money loans, bridge loans, fix-and-flip loans, transactional funding, or private capital, depending on the deal and exit strategy.

I’m trying to get clarity on: • How lenders typically underwrite mixed-use assets like this• Whether garage-based commercial income can be counted toward DSCR• How private lenders usually structure mixed-use loans (LTV, rate, term)• Whether bridge financing makes sense for this type of purchase• Any common pitfalls when financing C-MX-3 urban infill properties• If anyone has experience combining residential rent + small commercial income for underwriting I’m not looking to advertise or raise capital here just want to make sure I’m structuring this the right way before moving forward.

.- Bridge loans serve as a temporary financing option to bridge the gap between agency or HUD loans.

I do realize that some deals don’t qualify for Agency, so Bridge is commonly used.