How can I find a reliable bridge lender for a commercial renovation project?

If the project is in Maryland/DC/Virginia, there are also regional direct lenders. For example, Great Jones Capital currently advertises commercial/construction bridge loans in that region, while Brookmont advertises $1M–$5M senior bridge loans in the DMV. Those are examples to investigate, not endorsements.Great Jones Capital+1

3. Give every lender the same package

Have these ready before requesting term sheets:

• Purchase price/current property value
• Requested loan amount
• Detailed renovation budget
• Contractor bids and construction schedule
• Current rent roll and trailing-12-month operating statement
• Before/after property photos
• Plans, permits and zoning information where applicable
• Your financial statement, liquidity and credit information
• Your prior renovation/development experience
• Sources and uses
• Projected stabilized NOI/value
• Specific exit strategy—e.g., refinance into permanent CRE debt, SBA financing, or sale

Lenders specifically look at LTV/LTC, liquidity, sponsor experience, renovation documentation and the credibility of the exit.Requity Group+1

4. Compare the term sheets beyond the interest rate

I'd put these columns into a spreadsheet:

Pay particular attention to extension provisions and recourse. A seemingly cheap bridge can become expensive if construction runs six months late and the extension terms are punitive.

5. Verify that the lender is actually reliable

Before signing, ask for:

• Two or three recent borrowers with similar project sizes and renovation scopes
• Evidence of comparable loans they've actually closed
• A clear explanation of their approval and funding process
• Who has final investment-committee authority
• Exactly what conditions must be satisfied before each construction draw
• Whether the term sheet is subject to additional underwriting conditions
• Their track record of granting extensions when projects encounter ordinary construction delays

A direct lender that can demonstrate repeat execution on comparable projects is materially different from a broker who merely circulates your deal.

One important point

Don't choose the bridge lender until you've worked backward from the takeout loan. Your bridge lender should be comfortable that, after renovation, the property will meet the requirements of the permanent lender. Otherwise you can successfully complete the renovation and still discover that you can't refinance the bridge.

If you tell me (1) property type, (2) location, (3) current value/purchase price, (4) renovation budget, (5) desired loan amount, and (6) whether you're an owner-occupant or investor, I can research a shortlist of lenders that specifically fit that profile and compare their published terms and requirements.

• Two or three recent borrowers with similar project sizes and renovation scopes
• Evidence of comparable loans they've actually closed
• A clear explanation of their approval and funding process
• Who has final investment-committee authority
• Exactly what conditions must be satisfied before each construction draw
• Whether the term sheet is subject to additional underwriting conditions
• Their track record of granting extensions when projects encounter ordinary construction delays

A direct lender that can demonstrate repeat execution on comparable projects is materially different from a broker who merely circulates your deal.

One important point

Don't choose the bridge lender until you've worked backward from the takeout loan. Your bridge lender should be comfortable that, after renovation, the property will meet the requirements of the permanent lender. Otherwise you can successfully complete the renovation and still discover that you can't refinance the bridge.

If you tell me (1) property type, (2) location, (3) current value/purchase price, (4) renovation budget, (5) desired loan amount, and (6) whether you're an owner-occupant or investor, I can research a shortlist of lenders that specifically fit that profile and compare their published terms and requirements.