Bay Area Capital Commercial

Transitional / Bridge Product – non hard money

This is not a bank product – banks do not have this program. The loan is far less expensive than private or hard money, and it is perfect for investors who desire a reasonable rate and cost structure during a period of transition, or for investors who wish to avoid the banking industry’s need for personal guarantors. The most powerful aspect of this program is that properties can receive funds to help with rehab costs and construction costs, and – once completed and stabilized - this loan will (usually) automatically transition into permanent commercial financing programs with competitive rates without added fees, appraisals, and title costs. Available in entire USA. Eligible asset classes include multifamily and apartments, office, retail, hotel and hospitality, student housing, some industrial, possibly others.

This is a very powerful product for investors with property that does not meet the strict guidelines of the banks and Fannie Mae for issues that include:

  • Property condition, including construction completion
  • Stability or seasoning of income and debt coverage
  • Property in transition or Re-configuration (example old retail building now apartment)

Rates and cost can vary, depending upon class of property, strength of property performance, and strength of sponsor; however rates can be as low as 4% and generally are not higher than 10%. The fee structure is usually 2 points total (1 lender 1 broker), with a lender exit fee of 1 point that is waived if the client converts to permanent financing with this lender.


  • Purchase or refi (purchase out of foreclosure OK)
  • 1-3 year term – interest only payments, flexible amortization term
  • Up to 80% loan to future value
  • Up to 80% LTC (loan as a percentage of total cost)
  • Typically non-recourse


  • $2,500,000 minimum loan size
  • Cash flowing properties only – need current and future debt coverage ratios
  • Good sponsorship including strong resume and decent liquidity
  • Full financials and documentation
  • First liens only



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