Bridge Loan Exit Stress Test: Can the Refinance Work After a Delay?

By Don McClain | Founder & Principal, Medro Advisors Commercial mortgage maturity and bridge-loan exit planning. Before choosing a commercial bridge loan, compare the dated payoff and closing costs with usable refinance proceeds. Test a slower lease-up, lower net operating income and a later exit. Show the added interest, carrying costs, reserves and owner cash required, and verify the written conditions for any extension. Set the next financing decision before those resources run out. Start with FCC’s commercial loan maturity resources and bring the property, payoff, operating records and proposed exit to the discussion. Financing remains subject to review and agreed terms.