POINTS TO CONSIDER IN USE OF BRIDGE LOANS

1. Often no personal liability is required (transactionally determined).
2. Quick close (with documentation complete).
3. No equity position or JV interest required (which may be very expensive capital).
4. 8% to 12% interest only rates (much lower than most “PARTNERS” loans).
5. No Prepayment, defeasance or yield maintenance penalties in some cases.
6. No banking relationship or deposits required.
7. Leaves current bank lines of credit alone.
8. Use to pay off construction, JV partners, Bank, etc.
9. Use for quick acquisition of property.
10. No escrows for insurance, taxes, replacement reserves needed.
11. Use to discount current loans.
12. Use to purchase discounted notes on properties now owned.
13. Use to upgrade operations, thus NOI.
14. Use to turn operations around to get current low permanent loans.
15. Use to buy notes at discounts on new properties.
16. USE TO SELL PROPERTIES WITH FINANCING ALREADY ARRANGED, THUS PROJECTED RETURNS.