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Hard Money and Bridge Loans / For Real Estate Developers
For All Kinds of Commercial Property / Terms Up to Three Years


  • Hard Money and Bridge Loans for Land Developers 
  • For All Kinds of Commercial Property 
  • Minimum Loan Size $1,000,000 
  • Maximum Loan Size $100,000,000
  • Up to 50% Loan to Value for Land Projects 
  • Up to 65% Loan to Value for Other Kinds of Property 
  • Flexible Terms Up to 3 Years
  • Interest Only Options 
  • No Prepayment Penalty   
  • Average Closing Time Is Two Weeks After Approval of Paperwork 
  • Funding Sources Are Direct Lenders 
  • Funding Sources Have Direct Authority on All Loans  



Sovereign Capital's funding sources offer hard money real estate financing for real estate developers who need funding for commercial real estate projects, but don't meet bank standards or have time to wait.  A hard money or bridge loan can offer a good alternative to the slow process of trying to qualify for traditional bank financing.  

Hard money and bridge loans offer flexibility and speed to developers who have low credit scores, or who have properties that do not fit conventional mortgage requirements.  The average closing time is just two weeks after a completed loan package has been approved.

When doing a 1031 exchange, a hard money bridge loan can help a real estate investor obtain the extra capital needed to quickly close on the purchase of a replacement property, and complete the 1031 exchange within the 45 day time limit required by the IRS.

All kinds of commercial properties can be considered for financing including land, multi-family, mixed-use, retail, office, industrial, hotels, restaurants, etc.  In addition, land which is income producing, such as golf courses, tennis clubs, parking lots, mobile home parks, rv parks, ski resorts, etc., can be considered for hard money funding.

Real estate developers interested in qualifying for a hard money or bridge loan should have definitive answers to several questions about the subject property.

  • Does the property have a sufficient quick sale value to serve as collateral for the loan, or does the developer have other properties which can be collateralized to meet the loan to value requirement.?
  • Can the borrower afford the monthly payments?  (The borrower's profit and loss statement must show at least a 1.2 : 1 income to expense ratio).
  • Does the borrower have a realistic, workable exit strategy?  

The minimum hard money loan that can be funded is $1,000,000.

The maximum loan to value allowed for a collateralized property is 50% for land, and 65% for other kinds of property, based on a property's current market value, which has been established by a recent written appraisal.  The current market value of a property is based on its quick sale value, not on its commercial appraised value.

Land projects can not be collateralized with other land, but can be collateralized with other kinds of commercial property such as office buildings, apartments, etc. 

If a borrower owns mutiple commercial properties it might be possible to collateralize more than one piece of property under a single blanket loan to generate the required 50-65% loan to value.  The funding source requires a 1st lein position on at least 50-65% of the current market value of the subject property, and a borrower is required to have a minimum of 20% cash or equity invested in a project.  The remaining 15% of the property's value can be financed in the form of a seller carry back or other subordinated 2nd mortgage. 

Flexible loan repayment terms of up to three years are available, as well as interest only options.  There are no up front fees and all points are collected at the time of funding.

See the examples of hard money loans page to learn more about hard money funding.

Sovereign Capital's funding sources are direct lenders.  These lenders have direct authority on all loans, and have the funds available to fund loans quickly.  The average closing time for approved loans is just two weeks after all paperwork has been submitted. 

Our funding sources will also work with regional and national non-conforming lenders who have loans to sell.

Real estate developers interested in applying for a hard money loan should read the Guide To Applying For A Hard Money Loan, and then complete the Hard Money / Land Acquisition and Development Application.


Questions and Answers About Hard Money Funding

Land Acquisition and Development

Hard Money / Land Acquisition and Development Application 

Resources: Financial Links /Glossary