Educational information only, not legal, tax or financial advice. Examples and calculations may contain errors; verify them with your own advisors. Advertised starting rates are annual interest, not APR; one point equals 1% of the loan amount. Other fees and costs may apply, and all financing is subject to underwriting.
What a cash-out bridge loan is
A loan secured by a business-purpose property you already own that pays off any existing debt and returns cash to you. It is short-term, so you need a plan to refinance or sell.
Common uses
Buying out a partner, funding a down payment on another acquisition, paying for capital improvements, or replacing a maturing loan when a bank is not ready.
How much you can take out
Illustratively, a $2 million valuation at 65% LTV supports $1.3 million of total debt. After repaying $1 million of existing debt, $300,000 remains before lender fees, closing costs and reserves. This is arithmetic, not a quote; valuation, liens, available proceeds and loan approval are subject to underwriting.
Watch the cost of carry
Interest-only payments on a short-term loan cost more than long-term bank debt. Make sure the use of the cash earns more than it costs — and run the numbers in our calculator first.
Ready to see real numbers? Get a 30-second quick quote, try the bridge loan calculator or submit your deal.