Using after-repair value (ARV) in bridge underwriting

Using after-repair value (ARV) in bridge underwriting

ARV can support meaningful leverage in value-add deals, but only when it is grounded in a realistic scope, a believable budget, and an execution timeline that holds up in the real world. In bridge underwriting, ARV is not treated as a hopeful number. It’s treated as a...
Interest reserves in bridge loans

Interest reserves in bridge loans

A lot of bridge loan transactions look fine on paper until the timeline stretches, carrying costs build, and the property is still not producing stable cash flow. That is the point where interest reserves stop looking like a technical line item and start looking like...
Construction and rehab draw schedules

Construction and rehab draw schedules

A draw schedule is one of the most important operating tools in construction and rehab financing. When it is built correctly, it keeps funding, inspections, and project milestones aligned. When it is treated as an afterthought, even a strong project can lose time,...
Exit strategies for bridge borrowers

Exit strategies for bridge borrowers

If you want to know what makes a bridge loan approval feel “straightforward” versus “painful,” it usually comes down to one thing: the exit. Bridge loans are intentionally short-term. They’re designed to give you time to execute a plan – rehab, construction,...
LTC vs LTV: which matters for bridge loans?

LTC vs LTV: which matters for bridge loans?

Borrowers ask one simple question – “How much can I borrow?” – and often get conflicting answers. That’s because bridge financing is rarely sized from a single number. In practice, lenders look at multiple constraints at once, and the final proceeds are...