The bridge loan that looked too good to pass up, then didn't

I had a lender in Phoenix offer me a 6 month bridge at 8.5% with zero origination, which felt like a steal compared to the 10%+ I kept seeing. My broker warned me the exit cap rate assumptions were aggressive, but I signed anyway because the numbers worked on paper. Fast forward to month 4, the refinance appraisals came in 12% lower than the proforma, and I was stuck paying extension fees that ate every bit of the savings. Now I wonder if sticking with a boring local bank at 9.75% would have been the smarter play despite the slower closing. Anyone else taken a flashy deal and watched it backfire, or is there a way to vet these cheap bridge offers without getting burned?

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abbyd3619d ago

Tbh I used to chase those cheap bridge rates too, then I learned the fees always catch up.

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