A commercial bridge loan is short-term financing — often called a hard money bridge loan — that spans the gap between where a property is now and where it needs to be before permanent financing is available. Rubicon Mortgage Fund has been writing them on California commercial real estate from its own capital since 2008.
What a Commercial Bridge Loan Is Actually For
Every bridge loan answers one question: what is on the other side?
A bridge is not a cheaper way to borrow. It is a way to buy time against a specific future event — a lease signed, a renovation finished, an operating history seasoned, a property sold, a bank loan closed. If you can name that event and put a date on it, a bridge loan is the right tool. If you cannot, more debt is not the answer, and we will tell you that rather than write it.
Commercial Bridge Loan vs Bank Loan
These are not competing products. They are sequential ones — most bridge loans are repaid by a bank loan. The question is which one fits the situation in front of you.
Speed
A bank needs an appraisal, an environmental report, tax returns, entity documents, and two committee dates. That is a 60 to 90 day process on a good day. We give most borrowers preliminary terms within 24 hours and close inside 30 days. When a seller has set a closing date or a loan is maturing, that difference is the entire decision.
What gets underwritten
A bank underwrites the borrower: income, credit, global cash flow across every entity you touch, debt service coverage on income the property does not yet produce. We underwrite the property, the price against the market, and how the loan is repaid. No appraisal, no credit check, no tax returns.
That is why a bridge loan can fund a vacant building, a repositioning, an unusual property type, a recently formed entity, or a borrower whose returns do not present well — none of which a bank credit box is built to price.
Cost
A bridge loan costs more than bank debt. That is real and worth weighing honestly. Weigh it against what the alternative risks: a forfeited deposit, a property that does not come back to market, a 1031 clock that does not pause, or a maturity default recorded against the title. Measured against those, the cost of speed is usually small — and it is temporary by design.
When a Bridge Loan Fits
- A purchase has to close on a fixed date. The offer that holds its closing date frequently wins over a higher one that cannot.
- An existing loan is maturing and the bank will not extend.
- The property is in transition — vacant, under-leased, mid-renovation, or being repositioned.
- An equity raise came up short against a closing deadline.
- The operating history is too short for permanent debt but the asset is sound.
- A 1031 exchange deadline is running.
When It Does Not
Three situations where we would rather say no than write the loan.
There is no defined exit. A bridge with no destination is just expensive debt on a clock.
The property will not carry the payment. If servicing depends on a lease that has not been signed, say so at the start so we can structure around it.
A bank will actually close in time. If you have a commitment and the timeline works, take it. We would rather be your second call in six months than your regret today.
California Commercial Bridge Loans Rubicon Has Funded
- $3,000,000 — Santa Rosa. A 170-key flagged hotel. An equity raise closed short of an all-cash acquisition price while a bank loan matured at the same time. We bridged the shortfall at sub-30% LTV and closed in 30 days.
- $5,000,000 — Santa Rosa. A 135-room property on Highway 101. The owner did not want to sell into an unrecovered market, so we bridged them at sub-50% LTV to hold the asset and choose their own timing.
- $3,500,000 — Fremont. A gas station acquisition secured by the real estate and the operating business, bridging to a community bank refinance once two years of financials seasoned.
- $750,000 — Oakhurst. A mobile home park whose cash flow at acquisition could not support conventional debt, bridged while rents were brought to market.
More closed transactions are on our funded loans page, and full parameters are on our borrowers and lending criteria page.
Commercial Bridge Loans: FAQs
How fast can a commercial bridge loan close?
Most borrowers have preliminary terms within 24 hours, and closings inside 30 days are routine. We have moved faster when an escrow or an exchange deadline required it.
Are hard money bridge loans the same thing?
Yes. In commercial real estate the terms are used interchangeably — hard money bridge loans and commercial bridge loans describe the same product. Bridge describes the purpose; hard money describes the underwriting. Both mean short-term, asset-based financing from a private lender rather than a bank.
Do you require an appraisal or a credit check?
Neither. Someone from Rubicon inspects the property in person instead, which is both faster and more informative than a report.
Will you lend on a vacant or non-performing property?
Yes. Transitional property is a large part of what bridge financing exists for.
What happens at the end of the term?
The loan is repaid by the exit you identified at the start — a refinance into permanent debt, or a sale. We want that plan to be credible before we fund, because a bridge without an exit is a worse deal for you than for us.
Can the borrower be an LLC or a trust?
Yes. We lend to individuals, LLCs, corporations, trusts and partnerships, including recently formed entities.
What do you need to quote a bridge loan?
The property address, the loan amount you need, your timeline, and what repays the loan.
Are commercial bridge loans regulated in California?
Yes. Rubicon lending is made or arranged pursuant to California Financing Law and overseen by the California Department of Financial Protection and Innovation. All loans are business purpose and secured in 1st position.