How Bridge Financing Helped One Investor Fix and Flip a Shopping Center for Millions
Kyl Roelofs • January 5, 2024
When real estate investor Marcus needed to move fast on a distressed shopping center in a prime location, traditional lenders weren’t an option. The property had high vacancy, it was not in good shape due to deferred maintenance, and a motivated seller offered a very steep discount but only to buyers who could close quickly.
To secure the deal and fund renovations, Marcus turned to
private hard money loans
as a bridge financing option— a short-term loan that gave him the capital he needed, when he needed it. Within 12 months, he had transformed the property, secured new tenants, and
refinanced into a long-term commercial loan all while making a significant profit.
Private money financing was the key to making it happen.
What Is Bridge Financing?
Bridge financing is a type of short-term loan used to “bridge” the gap between the purchase of a property and the arrangement of permanent financing. For commercial investors, it’s a powerful tool that provides speed, flexibility, and leverage, especially in competitive deals or ones that require extensive rehab.
Whether you’re acquiring a distressed asset, waiting for a bank loan to clear, or investing in value-add renovations,
bridge loans
help you act quickly without losing momentum.
3 Ways Bridge Financing Helps Commercial Real Estate Investors
1. Buy a Property Fast
Marcus spotted a 35,000 sq ft shopping center listed below market value due to mismanagement and high vacancies. The seller wanted a 21-day close— too fast for any traditional lender. Private money gave Marcus the funds to close in under two weeks, beating out competitors with slower financing and even those using other hard money lenders.
2. Refinance While Waiting on a Larger LoanAfter the acquisition, Marcus began negotiating a long-term commercial mortgage since had new tenants in place after renovations. But underwriting would take months on a long-term loan. His bridge lender understood the timeline and structured the loan so that once the traditional permanent financing came through, he could refinance seamlessly out of his private loan.
3. Renovate Before Getting Long-Term FinancingThe property needed major upgrades— new signage, updated storefronts, improved landscaping, and interior work for future tenants. Private money financing covered not only the purchase, but also the renovation costs needed. Once the property was stabilized and generating cash flow, Marcus qualified for long-term financing at a much better rate and valuation.
Why Investors Choose Bridge Loans
Bridge loans aren’t just about speed, they’re about maximizing opportunity. They allow investors and commercial real estate developers to:
- Compete head-to-head with cash buyers
- Acquire properties that banks won’t finance due to condition or vacancies
- Improve the value of a property before refinancing
- Act on time-sensitive off-market deals
- Use equity in existing properties to fund new purchases
underwriting standards.
Is Private Money Financing Right for You?
These loans make sense if:
- You need to act fast on an acquisition or rehab opportunity
- You’re planning to renovate, reposition, or lease-up a property
- You intend to sell or refinance within 6 to 24 months
- The property doesn’t yet qualify for traditional financing
- You want to preserve your cash reserves for other projects
At Fast Loans, we specialize in
bridge financing for commercial
real estate investors who need speed, flexibility, and a reliable partner. Whether you’re flipping a shopping center, repositioning a warehouse, or preparing a retail asset for long-term tenants, we can help you
get the capital you need on your terms.
Marcus’s shopping center success wasn’t just about vision, it was about timing and access to the right kind of funding. Without private hard money, he would’ve missed the deal entirely. Instead, he closed fast, improved the property, and walked away with millions in his newly renovated commercial property valuation than when he started.
If you're an investor looking for a
short-term funding solution
to act on your next commercial opportunity, this is the secret to get you from potential to profit. Ready to move fast on your next investment? Fast Loans is here to help. Fill out our form or give us a call today! The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
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