Real estate projects rarely move in a straight line. Timing, capital, and opportunity have to align — and when one piece is missing, the entire deal can stall. That’s where a commercial real estate bridge loan comes in.
Bridge loans act as the piece that completes the puzzle, connecting today’s need to tomorrow’s solution. At Enact Partners, we see them as a strategic tool for borrowers and brokers who want to move quickly and keep projects on track.
What a Bridge Loan Really Is
A bridge loan — sometimes called a hard money loan — is a short-term, interest-only loan that helps finance a project until a longer-term solution is in place. It “bridges” the gap between where you are now and where you need to be — whether that’s refinancing, stabilizing operations, or selling the property.
Unlike a traditional bank loan, a bridge loan is built for speed and flexibility. Terms typically range from 6 to 18 months and can be customized to fit the project’s timeline.
Where Bridge Loans Fit in the Puzzle
Borrowers and brokers use bridge loans when timing matters most:
- Fast Acquisitions: When a property hits the market and you need to close quickly before competitors step in.
- Repositioning Projects: When you need capital to improve or lease-up a property before securing permanent financing.
- Cash-Out for Growth: When equity is locked in a property and you need it to fund other business initiatives.
- Transition to Bank Debt: When a property isn’t quite ready for a bank loan but will be after a few improvements or a few months of stabilized income.
- Horizontal Construction Needs: When grading, trenching, or utility installation must be completed during a seasonal window to avoid project delays.
Bridge Loans vs. Bank Loans
Banks are great at offering long-term, low-cost financing — once you qualify. But that process can take months, and many banks can’t move fast enough for competitive acquisitions or short timelines.
A bridge loan can often close in weeks, not months. It also doesn’t require that you keep deposits with the lender, and it can be structured around your project’s cash flow.
Putting the Puzzle Together: An Example
An experienced restaurant owner-operator with multiple locations in Northern California had the opportunity to expand into a new market by opening a second, larger location in Sacramento. After purchasing the 10,000-square-foot building, he invested significant personal capital and completed most of the renovations to create a high-capacity hotpot restaurant. To finalize the project and free up working capital, the borrower approached Enact Partners for a solution.
Our team structured a commercial real estate bridge loan that paid off the existing first trust deed on the new location and provided additional funds to launch operations. To support the requested loan amount, the borrower pledged additional collateral from other investment properties, demonstrating commitment and strengthening the deal.
This financing allowed the operator to complete the final touches, hire staff, and open doors without delaying his growth timeline. It’s a strong example of how bridge financing can help experienced business owners expand strategically while keeping momentum on their side.
Bridge Loans as a Tool for Growth
Bridge loans aren’t just for distressed deals. They are a tool for forward-thinking borrowers who want to move with confidence. By understanding where bridge loans fit in the real estate puzzle, you can use them to unlock opportunity, grow your business, and stay ahead of the competition. Prepare your business for the next stage of growth by putting the equity you’ve built to work. Partner with Enact Partners and send us your loan request for business growth today.
