Bridge loan rates on a 20-unit property jumped from 6% to 8.5% in under a year
I closed on a value-add deal in Tampa last March with a bridge loan at 6%, but when I looked at refinancing options this month, the best quote I got was 8.5%. The lender pointed to the Fed hikes and tighter capital, but some folks say it's more about lender risk appetite now. Are you seeing this kind of spike in your markets, or is there a better play than a bridge loan right now?
Well, in my last building, we had a few empty units. We found that offering a small move-in credit, like covering the first month's parking fee, really helped. We also made sure to highlight the recent updates, like the new kitchen counters, in the listings. It took about three months, but we filled those spots. Being clear about what the current tenants like about the building helped too, like the quiet neighbors or the good maintenance.