Commercial Bridge Loans for DFW Operators
Short-term debt capital for acquisitions that need speed, value-add projects that cannot wait for a permanent loan, and refinances with a story.
- Value-add multifamily and industrial acquisitions
- Discounted note purchases and REO
- Lease-up period on a newly built property
- Refinance of a loan about to mature on a property in transition
Bridge Loans, at a glance
- Loan size
- $500K – $150M
- Amortization
- Interest-only during term
- Term
- 12–36 months, often with extension options
- LTV
- Up to 75% of as-is / 70% of stabilized value
- Rate
- SOFR + 3.5% to 7%
- Typical close
- 2–4 weeks
Bridge debt exists because the permanent financing market moves slowly and real estate does not. Agency and CMBS lenders need a stabilized property with trailing cash flow before they will lock in a long-term rate, which means any asset that is mid-lease-up, mid-reposition, or mid-construction cannot get conventional debt. Bridge lenders fill that gap with short-term, interest-only capital designed to be paid off once the business plan is executed.
In DFW we see bridge debt used most often on value-add multifamily (buying a 1980s-vintage Class C building, renovating units, raising rents, then refinancing into agency), industrial acquisitions where the buyer is relocating a credit tenant, and hospitality repositions. The right bridge lender is the one whose loan sizing, leverage, and exit philosophy actually match the business plan, we run deals across a deep bench of balance-sheet bridge shops, debt funds, and private bridge REITs.
When bridge debt is the right tool
Bridge is the correct product when the asset has a clear value-creation path and the borrower can identify a specific event that will retire the debt: stabilization, refinance into agency/CMBS, or sale. It is the wrong product when the deal has no exit, a static asset that throws off steady cash flow belongs in a permanent loan, not a bridge.
The other frequent use case is speed. When a DFW seller needs to close in 21 days, there is no SBA or CMBS lender that can make the timeline. A balance-sheet bridge lender with good file discipline can underwrite and close inside three weeks, and the borrower refinances into cheaper debt after the fact.
How DFW bridge pricing actually works
Bridge rates float over SOFR. A cleanly underwritten Class B multifamily bridge in DFW is currently pricing in the SOFR + 3.5%–4.5% range for experienced sponsors at 70% LTV. Construction take-out bridges and hospitality come in wider. Origination fees run 1%–2% of the loan amount, and most bridge lenders include an exit fee or minimum interest provision that protects them against early payoff.
The number that really matters is the in-place DSCR at close. Bridge lenders will sometimes stretch leverage but they will not stretch debt service, if the property cannot cover the interest payment at funding out of in-place cash flow, you will need an interest reserve or a lower loan amount. We model both scenarios on every file.
Ready to explore Bridge options?
Get a QuoteBridge Loans, FAQ
How fast can a commercial bridge loan close in DFW?
A motivated balance-sheet bridge lender can close inside 14–21 days on a clean file. Non-bank bridge lenders are consistently faster than banks because they underwrite on their own balance sheet without depositor capital constraints. We have placed deals that closed in 9 days when the seller needed speed.
What's the difference between hard money and a bridge loan?
There is overlap, but bridge loans are generally larger ($1M+), more institutionally underwritten, and more flexible on structure. Hard money is typically smaller, faster, more collateral-driven, and usually priced higher. A $25M value-add multifamily is a bridge deal. A $400K fix-and-flip is hard money.
Do bridge lenders require personal recourse?
It depends on the loan size and sponsor quality. Deals below $5M are usually recourse. Above $10M, non-recourse with carve-outs (the standard "bad boy" carve-outs) is common for experienced DFW sponsors. Between $5M and $10M it is deal-by-deal.
Can I bridge a property that's currently vacant?
Yes, many bridge lenders will underwrite on a stabilized pro-forma if the business plan is credible. Expect to fund an interest reserve sized to cover debt service through lease-up. Leverage on vacant properties typically tops out at 65% of as-is.
What happens if I can't refinance the bridge on time?
Most DFW bridge loans include one or two 6-month extension options, each carrying an extension fee (usually 0.5%–1% of the loan amount) and sometimes a DSCR test. We underwrite every deal assuming the first extension gets used, if the math does not work with a 30-month effective term, we restructure or change lenders.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
SBA 7(a)
SBA 7(a) Loans
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Loan size
- $50K → $5M
- Close
- 45–60 days with Preferred Lender
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Tell us about your property and we'll match you to the right capital source across our network of 30+ lenders.