Cetan Funds recently funded a residential bridge loan on a townhome development in Eugene, Oregon. The developer had completed construction and sold 3 of the 12 units. With 9 units remaining to be sold and a construction loan that was coming due, they needed more time to sell the units and finish the project. They were also working with a very tight deadline after trying to secure financing from more institutional sources and running into major obstacles in their strict underwriting processes. They needed to close in roughly 2 1/2 weeks to avoid significant fees on their existing loan.

Cetan was able to meet their deadline with our streamlined process and commonsense underwriting. This residential bridge loan refinanced all 9 units and gave the developer more time to sell the units. We were also able to roll fees and reserves into the loan to help the developer avoid having to bring in more of their own capital. The loan also provided the flexibility they needed with the ability to do partial lien releases as each individual unit was sold. We anticipate these units selling gradually over the next 12 months. 

Loan Purpose

Residential Bridge

Cetan Funds Residential Bridge Loans are short-term loans designed to get a borrower from point A to point B as quickly and efficiently as possible. Bridge loans are ideal for investors, builders, or business owners hoping to access funds quickly. Often, a bridge loan is used in business to rapidly leverage assets by refinancing a rental property, commercial building, or multifamily apartment building. If a residential real estate investor needs a quick closing to secure a new property, they can use a residential real estate bridge loan for the acquisition and rapidly refinance into a more permanent loan afterward. If a business owner or real estate investor needs cash for their business for a short period of time or needs to quickly refinance their existing debt, they can quickly leverage their real estate to “bridge the gap.”

Location

Eugene, Lane County, Oregon

Loan Terms

$4,500,000 at 11.5% for 12 months

Residential Bridge Loan on Townhome Development in Eugene, Oregon
Residential Bridge Loan on Townhome Development in Eugene, Oregon
Residential Bridge Loan on Townhome Development in Eugene, Oregon
Residential Bridge Loan on Townhome Development in Eugene, Oregon
Residential Bridge Loan on Townhome Development in Eugene, Oregon
Residential Bridge Loan on Townhome Development in Eugene, Oregon

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