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Looking at two different bridge loan options for a strip mall deal
We had a 12-unit strip mall in Tampa that needed a full roof replacement before we could get permanent financing. One lender offered a 12-month bridge at 9.5% with a 2-point fee. Another offered 10.5% for 18 months but with no points at all. We ran the numbers and the no-points loan saved us over $85k in upfront costs, even with the higher rate, because our exit was solid in under a year. The flexibility on the term was just a bonus we didn't end up needing. Has anyone else found that skipping points is the better move on a short-term hold?
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lunaw7227d ago
That math on skipping the points makes total sense. I had a similar thing with a six-unit where the higher rate but no fees was way cheaper for a quick flip. Those points are a killer if you know your exit is close.
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the_evan26d ago
Ever notice how this same idea of paying more upfront to save later is everywhere? Like buying the more expensive but reliable tool instead of the cheap one that breaks. Or spending extra on good tires because you know you'll drive a lot. It feels wrong at first, but the math always wins if you look past the sticker price.
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