San Jose Bridge Lenders for Commercial Real Estate

Redwood Mortgage, a direct private money lender headquartered in the Bay Area, funded a $4,600,000 short term bridge loan secured by a commercial office property in San Jose. The Borrower is a well-established organization that occupies the property. Redwood’s loan provided cash out for the borrower to pay off maturing debt and as well as cash for debt consolidation. The loan-to-value was 48%, and the term is 24 months, interest only. The Borrower turned to private money given that the bank refi was delayed and impacted by tightened loan program parameters due to the current pandemic. Redwood’s loan provided the cash out liquidity needed in a timeframe that supported the organization’s needs. The Borrower's exit strategy is to refinance with a bank loan in 1-2 years. This private mortgage was funded in November 2020.

1st trust deed bridge loan for the purchase of an 8-unit residential property close to Downtown San Jose, funded in June 2014. The Borrower is an investor group that purchased the property using $360,000 of their own cash and a $150,000 seller-financed 2nd mortgage. The purchase price was a little over $800,000. We were comfortable having a 2nd behind our 1st private mortgage since the combined LTC was under 60% and the borrower had strong financials. The Borrower plans to increase rents and refinance out both the 1st and 2nd with a long-term conventional mortgage.