Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago,

User Stats

43
Posts
13
Votes
Jeffrey Mcintyre
  • New York City
13
Votes |
43
Posts

Transitioning from Bridge loan to Traditional (commercial)

Jeffrey Mcintyre
  • New York City
Posted

Hello BP members,

* tried searching BP for a definitive answer and couldn't find one*

* I need some help understanding the process of moving from Bridge-loan to Traditional-loans*  I'm practicing running proForma-charts and evaluating properties ( * using fake Examples to drill in the concepts*).

Can someone explain how exactly would one transition from a Bridge loan to a more Traditional loan?

For instance, If I acquire a property using Creative Financing ( Master-Lease etc..) and were to get a Bridge-loan based on the Asking price of a property, I would then use that money to increase value ( renovations, CapExpenditures etc...).

...Now when I've stabilized the property  and I'm ready to move to a traditional-loan, Can I use the money from the Bank's traditional loan to pay off the Bridge loan?...what can be done if the property isn't Cash-flowing enough to provide the bank with a down-payment for the traditional-loan?

In addition: I would assume that it would make sense to use the same lender for both the Bridge and Traditional loan, correct? 

Any assistance would be greatly appreciated.

Loading replies...