Access is a key to client success at Remington. What do I mean by ‘access’?

• Access to the unmatched expertise of our Structured Finance Group
• Access to our highly regarded global network of private and public sources of capital
• Access to equity, mezzanine, and senior debt financing, as well as special-purpose bridge and construction loans in minimum loan amounts of $500,000 in the U.S. and $5 million internationally

Every day I work closely with brokers, mixing and matching commercial lending options in creative ways to secure the best possible financing for owners and developers consistent with their objectives and market conditions. Let’s discuss your specific situation today.  Thank you!  Travis Schmidt

The bridge loan is a form of financing that “bridges” the gap between funds needed now and when longer-term financing becomes available. It can be a key component in an owner’s long-term financing strategy, particularly for those faced with a here-and-now opportunity or other shorter-term situation such as improving or selling a property.

Real estate owners often use a bridge loan to purchase a second property before the sale of the first property closes. Then the proceeds from the sale are used to pay off the bridge loan. This illustrates the important “exit strategy” borrowers must have before an investor makes a bridge loan. In this example, the investor would need to see a signed sales agreement spelling out where, when, and how the bridge loan will be repaid.

Bridge financing almost always needs to be arranged and closed quickly. Such loans tend to be for 6 to 12 months with a possible 12-month extension. They are usually structured as simple interest only loans with no pre-payment penalty and all principal due in full at maturity. Risk to the investor is minimal since the loans are underwritten based on existing equity in the property and the exit strategy is defined.

Because of the owner’s need for timeliness, banks and other institutional lenders are not usually effective when it comes to bridge loans. That’s why the Capital Markets Group at Remington provides access to investors capable of making on-the-spot decisions. Included among them are hedge funds, private equity groups, mortgage pools and other sources of private capital. For information on other types of short-term loans, please give me a call.  Thank you!  Travis Schmidt – Remington