Despite the COVID-19 pandemic, we obtained a bridge loan for our client to do a cash-out refinance on her office condominium unit in Miami, Florida.
The terms of her commercial loan included a 2-year term, fixed interest rate, and no prepayment penalty.
The bridge loan program enabled her to quickly leverage her cash position in her office condo and use the cash-out proceeds to invest in other real estate projects. She also had a pressing need for funds because several of her tenants in her residential investment properties had stopped paying rent due to the coronavirus outbreak.
Because there is no prepayment penalty, she will be able to refinance to a longer-term program as soon as the market allows.
Teamwork and communication were key in closing this transaction, as everyone was working remotely due to COVID-19.