Bridge financing is simply just a short-term loan.

They typically will finance a percentage of the purchase price,

a percentage of the CAP-X, all the renovations that need to happen in the hotel game.

If you have the right bridge lender,

they'll even finance the furnishing and the design.

So our bridge lender typically will do 65, maybe 70% loan to cost, depending on how the deal underwrites.

And so in that example, they're going to fund 65% of the purchase, 65% of all the renovation, and 65% of all the design and furnishing, which allows you to come in with a little bit higher leverage.

And they're typically going to look at two numbers. They want to know what is the as-is value of this property as is when you come in

and purchase it. And then number two, what is the stabilized value? And so they're going to order an

appraisal, and that appraiser is going to have two numbers, the existing value, and then also

the stabilized value based on

your business plan.

Welcome to the Rich Strummers Report, where we talk real estate, business, and wealth

building, all while keeping it real.

No fluff, no BS.

I hope that you enjoy the show.

Tim, I appreciate you having me on, my man. It's been forever.

I think the first time we connected was on my old podcast years ago, the multifamily takeoff.

And excited to reconnect, man.

And glad to see you're doing big things, man.

You're looking great, looking fresh.

Thank you for having me.

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