Commercial Bridge Loans: When They Make Sense and How to Plan the Exit

A commercial bridge loan is short-term financing for an income property that doesn't yet qualify for a permanent loan, or a deal that has to close faster than a bank can move. The loan "bridges" you from where the property is today to where it will be after you lease it up, renovate it or reposition it, and then a refinance or sale pays it off.

When a bridge loan makes sense

• Vacancy or low occupancy. Banks want stabilized income. A bridge loan lets you buy the building, fill it and then refinance.
• Renovation or conversion. Mixed-use, retail and small multifamily properties that need work before they can support permanent debt.
• Speed and certainty. A seller who wants a fast close, a maturing loan that needs to be taken out, or a discounted note or estate sale.
• Recapitalization. Pulling equity out of a property to fund the next step of the business plan.

How a bridge loan is sized

Bridge lenders size to the property's value and the business plan rather than to today's income alone. RevitaLending's commercial programs lend up to 70% loan-to-value (and up to 70% of cost on the under-$2M program). Some structures add an interest reserve, so part of the payments is set aside in the loan, or holdbacks for tenant improvements and leasing commissions that are released as leases are signed.

Two RevitaLending programs, two deal sizes

	Under $2M	$2M to $10M
Loan size	$100,000 – $2,000,000	$2,000,000 – $10,000,000
Leverage	Up to 70% LTV / LTC	Up to 70% LTV
Term	12 – 24 months	12 – 36 months
Rate	10.99% – 13.99%	Starting at 10.49%
Property types	Multifamily, mixed-use, retail, office, self-storage, light industrial, high-end SFR investment	Multifamily, retail, industrial

See the full terms on the Under $2M and $2M–$10M program pages.

Plan the exit before you close

Every bridge loan ends. The lender's first question is how it will be repaid, and yours should be too. The common exits:

• Refinance into a bank, agency or other permanent loan once occupancy and income meet that lender's requirements. Find out what those requirements are now, not at month 11.
• Sale once the property is renovated or stabilized and worth more.
• Extension, if the plan is on track but needs more time. Ask up front what an extension costs and what it requires.

Rule of thumb: pick a term that covers your business plan plus a cushion, because leasing and permits rarely move faster than planned.

What the lender will want to see

• Purchase contract or current loan payoff
• Rent roll and leases, or a vacancy and lease-up plan
• Operating statements, if the property has income
• Renovation budget and timeline, if there's work to do
• Your experience with similar properties
• The exit: who refinances it, at what numbers, or what it sells for

Costs to compare

Compare the full picture: rate, origination fees (2% to 4% on the under-$2M program), exit or extension fees, holdback and draw fees, and any prepayment terms. Interest-only payments keep the carry lower while you execute the plan.