What is a bridge loan?

 A bridge loan is a short-term loan.  It is sometimes referred to as a “hard-money” loan or an asset-based loan.

What is a typical loan term?

Our typical term is 6-12 months, but can sometimes be as long as 18 months.

Are your loans the same as mezzanine loans?

No.  Mezzanine loans are by definition subordinate to another loan or loans.  We are a senior-position mortgage lender.  Sometimes our loans replace other loans on the property or properties, but we are always the senior lender.

What are your typical interest rates?

They vary, but typically range from 12-16%

What loan-to-value do you usually allow?

We will lend a maximum of 60% of the value of a property.  Sometimes we may lend up to 60% of the increased value of what a property will be worth upon certain improvements to be made by the borrower immediately after closing.

Do you charge points at closing?

Yes, the amount varies.  We’ll tell you up front what we will charge.

How do you value properties?  Will I have to wait for an appraisal, and who pays for that?

We usually value properties ourselves.  We rarely use appraisals or Broker Price Opinions, so there are typically no costs associated with these items, nor the typical delay involved in waiting for receipt of them.

How fast can you close?

We can usually make a decision whether to lend within 2-3 business days.  From then on, the only delay will be the time it takes an approved title company to prepare title insurance.

What application fee do you charge?

No application fee.  No applications, either.

What other fees do I have to pay you?

None.  If we decide to proceed with your loan, we require a non-refundable deposit for our attorney to draft loan documents suitable to your specific circumstances (each loan is different, and we try very hard to cater to an individual borrower’s needs).  Title insurance is charged at closing, as well as any title company charges such as recording fees, etc.  But unlike many other lenders, there are no other fees for providing a loan to you (such as document preparation fees, loan processing fees, etc.).

What about credit scores?

We sometimes review credit scores but we don’t make determinations on the sole basis of a credit score.

What about if I’ve had prior foreclosures, or a bankruptcy?

From our underwriting standpoint, we believe that prior financial challenges are not an indication of a borrower’s trustworthiness or ability to repay a loan.  Therefore these factors do not, by themselves, prevent us from lending.

Whose money are you lending?

We lend our own money in partnership with various investors.  If you’d like to consider being an investor, please contact us.

Will you work with a broker?

Yes.  Please contact us directly to discuss your client’s needs.

Do you lend outside of Chicago?

We do, but within approximately 40 miles.  Please see our service area discussion under Loans We Provide for any update on our service area.