One of the most frequently-forgotten things in real estate is that pieces of property are valuable, especially if they're in an active business district.

That, of course, is the problem. The larger a loan is, the more scrutiny any lending institution will require -- and if you aren't paying for the entire thing out of your own pocket, you'll have to limit yourself to the bank's pace as you process the paperwork. If someone else is also interested in the property, you could find yourself losing out simply because the paperwork takes so long to complete.

Bridge loans are the easiest and most effective way of overcoming this. At their core, bridge loans exist to cover the gap while long-term financing is arranged.

The Fast Facts

• Most bridge loans will last between two weeks and three years
• Paperwork for long-term financing can experience delays, so it's usually better to get a loan of several months more than you think you'll need
• Exact terms vary, but some bridge loans have no prepayment penalty, so you can easily dismiss it faster if things go well
• Due to their short-term nature, bridge loans have higher interest rates than standard loans

How Bridge Loans Can Affect Your Credit Score And Loan Amounts

Due to their short-term nature, bridge loans require significantly higher payments than other types of loans. If you have a solid amount of cash as a cushion, this can be excellent for your credit score, as consistently paying a high amount will help financial institutions regard you as more trustworthy.

In fact, the history of payments made under the terms of a bridge loan may allow you to qualify for a larger loan -- and with the prices of some types of commercial real estate, this can make the difference between getting the property you want and being forced to purchase a different location instead.

Why Bridge Loans Make Sense For Commercial Real Estate Transactions

Bridge loans have two major advantages over most other forms of money-lending: they're easy to get and they can be obtained quickly. As discussed in the introduction, this makes bridge loans ideal when you're trying to obtain a specific piece of property, especially if you have a narrow deadline for doing so.

It's also worth noting that bridge loans are often used to finance improvements to a given piece of property. For example, a bank may refuse to lend money to help purchase an old building with worn-out wiring, but once a thorough renovation has been performed and the building is no longer seen as unsafe, that same bank may be more than willing to extend an offer.

Which Types of Businesses Benefit Most from Bridge Loans?

As with all forms of lending, businesses that have a stable and reliable source of income are most likely to benefit from a bridge loans. Smaller businesses, or those with uncertain income levels, may have trouble meeting the large payments that bridge loans require.

However, this is only a general problem, and a solid business plan may be able to remove most of the disadvantages. It should not be forgotten that the main goal of a bridge loan is covering the gap between right now and when you can secure traditional, long-term financing -- and many banks will be happy to consider a business plan and work with you to create a mutually-agreeable loan agreement.

Where Can I Get A Business Loan?

Andrew Jubelt is a commercial real estate financing expert who can help you get a bridge loan for nearly any commercial real estate transaction. Contact him today at ajubelt@avant-capital.com, or call 212-231-9779 for more information. 

You know how dodgy things can get when you're trolling the New York City commercial real estate market for financing. One name that has always been trusted for connecting borrowers and lenders is Andrew Jubelt.

Andrew Jubelt can help you at every stage of the game, including helping to secure a bridge loan for your investment real estate project. He has decades of experience in real estate financing, including as a developer, owner and operator of commercial real estate,

Andrew Jubelt knows his way around a real estate investment project. Moreover, with his experience as a principal at Avant Capital Partners, Jubelt brings a definite gravitas to the table.

Oftentimes in real estate financing, there will be major holdups along the way. Administratively, things could be held up ... and yet practically speaking, you still have workers on-site who need to be paid. At the very least, you're looking at hefty fines and penalties for paperwork not being filed, taxes not being paid and fees being levied, all because financing you thought was adequately in place had actually fallen through.

Bridge loans are a great tool for anyone who finds themselves in such a situation. Maybe you're receiving your financing in stages, for instance, and find yourself in the situation of having to wait days -- or even weeks -- for the financing to clear and post to your account. This is a perfect example of a situation during which a bridge loan can come in handy. Depending on your circumstance and the bridge loan officer you're working with, you may even be able to obtain financing with low or absent points.

Another example: If you're in the predicament of wanting to close quickly on a property but find yourself waiting on the financing, a short-term bridge loan may be a good solution -- until you've retained more solid, long-term financing, of course.

Whatever your financing needs -- and whatever the length of your financing -- you should reach out to Andrew Jubelt at Avant Capital Financing. As unusual or non-standard as your circumstances may be, Andrew Jubelt has almost certainly dealt with a similar situation in the past, and he may be able to help you realize your investment real estate project goals.

We understand that you have many choices when it comes to finding short-term financing for real estate investment projects, and that's just one reason why Andrew Jubelt will work so hard for you and your business. What's more, his years of experience and his contacts within the industry promise to move your project at a surprisingly rapid clip, and with less interruptions than some other lenders may run into.

If you'd like to learn more about obtaining a bridge loan for your commercial real estate financing, contact Andrew Jubelt today. He's available to discuss the needs of all borrowers, regardless of whether you're interested in short-term financing, original financing, or potential options to exit an existing loan.

Andrew Jubelt is here to listen, ask questions, and help when he can.

As a principal at Avant Capital Partners, Andrew Jubelt can assist in providing a broad range of loan programs that can provide you or your clients with the commercial real estate funding you need. Contact Andrew Julbelt at ajubelt@avant-capital.com, or call 212-231-9779 for more information.

Bridge loans are a very special kind of loan that offers you short-term access to large amounts of money — enough to close a deal on a new commercial property, even when under tight time constraints.

In short, bridge loans are interim loans (that is, short-term loans, generally not more than 12 months long) that use commercial real estate as the collateral for the deal. They're not intended to be a substitute for any type of long-term financing, and while they're not needed for every commercial real estate deal, these loans have often made all the difference for those using them. 

The most common uses of bridge loans are:

• Circumventing liquidity restrictions for businesses whose cash flow isn't allowing them to close a deal when they want to, and/or
• Executing an interim task (working on a balloon payment, making renovations to the building, etc.) before permanent financing can be obtained through a traditional property loan.

However, there are a few more things that borrowers should be aware of:

• Bridge loans tend to have higher rates of interest. In the long-term, using them will probably cost more than going for permanent financing right from the start. Companies who can arrange for better financing from the start should do so.
• Unlike many other kinds of loans, some bridge loans can be extended. Expect to be charged an additional fee of up to 2% if you ask for an extension, but be sure to check for this option upfront, as it may be more difficult to acquire later.
• Owing to their short-term nature, bridge loans almost never have pre-payment penalties. Many companies choose to pay off the bridge loan through their permanent financing, since this tends to cost less in the long-term.
• Despite the speed at which they can be offered, bridge loans still undergo in-depth scrutiny. Having a clear business plan can help ensure that the loan is given, and may even result in a lower interest rate for the borrower.

Andy Jubelt has helped to arrange these types of loans in many different circumstances, including for companies who didn't realize that these options were available for meeting their needs.

How Does It Work In Practice?

Consider this scenario:

A 250-unit complex in a nice area hasn't been taken care of in the last few years. In fact, most people would call it outright shabby, which may have something to do with its 35% vacancy rate. The current contract for the building is $12 million, but after $2 million in renovations over the next six months, the building could be improved to a total worth of $20 million. At that point, the rents within the building could be raised, and the improvements would likely attract new tenants despite the higher prices.

A bridge loan would be used here to secure $14 million — the contract plus the cost of renovations. The property itself becomes the collateral for the deal, and once the renovations are finished, the bridge loan is replaced by permanent financing for the full value of the building.

Andrew Jubelt can help arrange for both the bridge loan and the permanent financing, helping to narrow down the real cost of this technique for each individual case.

For more information about obtaining a bridge loan — including an expert opinion on whether or not it's right for you — contact Andrew Jubelt at 212-231-9779 or send an email to ajubelt@avant-capital.com. As a principal with Avant Capital Partners, Andrew can help you get the connections and the financing you need for your next purchase of commercial real estate.

Andrew Jubelt is a Principal at Avant Capital Partners. Avant Capital offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being repositioned, re-tenanted, improved or otherwise redeveloped and has recently originated a $3,275,000 bridge loan secured by a property located at the corner of Flatbush Avenue and Lincoln Road in the Prospect Lefferts Gardens neighborhood of Brooklyn, New York. The interest-only 24-month loan carries an interest rate of 8.00% and refinanced the first mortgage. 

Demand for residential and commercial real estate in Brooklyn is strong with high occupancy and increasing rents. Under-priced land and room for upward growth in rents is the magic formula that developers seek in the next hot neighborhood.  

“Prospect-Lefferts Gardens Is ‘On the Map’” ― New York Times, March 13, 2014

Prospect Lefferts Gardens, like much of Brooklyn, is undergoing a rapid demographic change. New residential developments are attracting residents from Manhattan who enjoy more affordable rents, proximity to the 585-acre Prospect Park and public transposition access to Manhattan via the B, Q, 2 and 5 trains. Residential rents in Prospect Lefferts Gardens are about 50% lower than in Manhattan. 

Residents often cite the area as “Brooklyn’s best-kept secret,” bordering the east side of Prospect Park and down the road from the Brooklyn Botanic Garden, with a substantial and attractive historic district, and subway stops for three express trains. It’s also a community with no hard-and-fast height limits on development, and its real estate can cost as little as half that on the other side of the park 

How Andrew Jubelt can help: 

Avant Capital Partners offers a broad range of loan programs that can provide you with the commercial real estate funding you need. Contact Andrew Julbelt at ajubelt@avant-capital.com or call at (212) 231-9779 for more information about how a balance sheet lending program can offer you competitive bridge loan rates, interest only payments and quick closings. 

Capabilities of Andrew Jubelt and Avant Capital Partners include: 

• Quick closings for acquisitions 

• Refinance unencumbered real estate quickly to access equity 

• Discounted note purchases and/or recapitalizations 

• Construction completion 

• Condo inventory loans 

• Development site acquisition 

• Other non-bankable transactions

Are you interested in securing a commercial bridge loan? Contact Andrew Jubelt at (212) 231-9779 or email him at ajubelt@avant-capital.com for more information.

As an experienced developer, no one is more acutely aware of the need for developers to secure bridge and permanent financing for multifamily and commercial properties, at competitive rates, than Mr. Andrew Julbelt. Mr. Jubelt is a principal at AVANT Capital Partners, bringing his years of broad based experience to the process of acquisition financing and recapitalization of under-water projects to this a real estate advisory firm and lender.

AVANT Capital Partners was recently featured in the New York Real Estate Journal in their role of facilitating permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in transition. The New York Real Estate Journal provides the latest commercial real estate news for the state of New York, profiling the most influential companies and people in the real estate industry.

The article profiled the $1.4 million bridge loan secured by a condominium portfolio originated by AVANT Capital Partners. The 24-month loan carries an interest rate of 10.75 percent, facilitating a discounted construction loan payoff for the original developer of the project.

The 13-story building located in Brooklyn consists of a vacant ground floor retail condominium and 38 residential condominiums that were completed and brought to market in 2009. The property, a former piano factory, was originally built in 1903.

Please contact Andy Jubelt at (212) 231-9779 or email Avant Capital Partners at info@avcapital.net to learn more about permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in transition.

Andrew Jubelt and Avant Capital Partners provides commercial mortgages for stabilized

and in-transition investment properties nationwide. They offer permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in-transition. Avant Capital Partners originates commercial mortgages nationwide for multifamily, commercial, and bridge loan transactions.

Andy Jubelt has decades of experience working not just with banks but other financial outlets and interested individuals to offer the best options for funding at more attractive rates. This can speed up the time to sale, or improve forecasts on capitalization of earnings due to increased growth possible on "value add" properties that increase in value. Experience in looking for money is the key to Mr. Jubelt’s success in using debt and equity on more than $1,000,000,000 in funding.

Avant Capital offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being repositioned, re-tenanted, improved or otherwise redeveloped, with a clear exit strategy for loan repayment. This lending program offers competitive bridge loan rates, interest-only payments & quick closings.

In the current credit environment, Avant Capital adds value to commercial real estate brokers in a number of ways: Certainty of closing: Avant can provide borrowers with a comfort level about available financing necessary before entering into purchase contracts Avant can provide brokers with preliminary program quotes for all of their listings Partnering with Avant can reduce transaction costs for your clients Partnering with Avant helps provide additional fee income to real estate brokerages Avant Capital Partners can provide both buyers and brokers with peace of mind because both parties can feel comfortable knowing that there is a certainty of execution in the closing of transactions. Please contact Andrew Jubelt at (212) 23109779 for more information about how Avant’s lending platform levels the playing field between commercial real estate broker partners and competing nationwide firms.

Andy Jubelt is an experienced developer, owner and operator of commercial real estate including more than 10,000 multifamily and senior housing units.  As a Principal at Avant Capital Partners, Mr. Jubelt specializes in creative and innovative strategies to provide value-added services and enhance long-term value for numerous complex transactions. Such transactions include:

AVANT Small Business & Owner Occupied Program (SBA-504)

Avant Capital Partners offers mortgages for stabilized owner occupied real estate from $500,000 to $10,000,000 nationwide. This program offers competitive fixed rates for business oriented real estate and high leverage.

What is a SBA 504 Loan?

The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.

Property types under consideration include retail, industrial, office, medical office, dental office, commercial condominium, hotels, self storage, marina, health clubs, funeral homes, movie theaters, grocery stores, convenience stores, gas stations, truck stops, restaurants, banquet halls, auto dealerships, lube & oil change centers, tire care centers auto repair facilities and other special use business oriented real estate.

The following is a standard checklist of items that will be required for underwriting and loan committee:

1. Transaction Information

             Brief Description of Loan Request

•  Loan amount desired?
• Purchase or refinance?
• Purchase Price (if applicable)
• Copies of existing mortgage(s) (if applicable)
• Desired loan term?
• Desired interest rate?
• Other critical information timing/deadlines, property or borrower issues, background, etc.).

2. Property Information

• Property Address
• Property Type Description (square footage, occupancy, year built, number of units, etc.)
• Property History
•  Original purchase price and date acquired
• Total spent on capital improvements since acquisition
• Color photos (exterior and interior) 
• Copy of all leases
• Current rent roll
• If property is owned by a real estate holding company:
• Most recent years tax returns for real estate holding company
• Previous two years’ tax returns for real estate holding company
• Most recent Year-End Financial Statement (balance sheet and P&L statement)
• Previous two years’ Year-End Financial Statements (balance sheet and P&L statement)
• Interim financials (balance sheet and P&L statement)
• Debt Schedule
• Copies of existing third-party reports

3. Business Information

• Business name and description
• Most recent years’ tax returns for business and all affiliates
• Previous two years’ tax returns for business and all affiliates
• Most recent Year-End Financial Statements (balance sheet and P&L statement)
• Previous two years’ Year-End Financial Statements (balance sheet and P&L statement)
• Interim financials (balance sheet and P&L statement)
• Debt Schedule

4. Principal/Guarantor Information (anyone who owns 20% or more of the Business)

• Personal Financial Statement
• Schedule of Real Estate Owned  
• Resume
• Signed credit authorization
• Most recent years’ personal tax returns 
• Previous two years’ personal tax returns

Please contact Andy Jubelt at (212) 23109779 or email Avant Capital Partners at info@avcapital.net to learn more about AVANT Capital’s Premier Conventional and SBA 504 Lending Programs are focused on owner- occupied and investor real estate loans.