Avatar's Blog

Avatar Financial Group is a commercial hard money bridge lender. In general, we fund commercial, industrial, and investment residential properties. In some circumstances, we can also fund owner occupied residential properties. Here's how and when:

If the property is located in the states of Washington (WA) or California (CA), Avatar can assist owners with their residential mortgage needs. All loans are subject to our 65% LTV and $500,000 minimum loan amount. Therefore, properties must be selling in current condition today for at least $770,000. This is known as the ‘street value’ or ‘quick-sale value’ of the property. MAI appraised values may be somewhat higher. Avatar lends on today’s purchase price.

If the residence is held in an LLC, Trust, or other corporate entity and the funds are to be used for business purposes, it is possible to refi your property with a hard money commercial bridge loan. TIP: Don’t call the hard money lender and ask how to put your property into the corporate entity so you can get a loan. As with many financial restrictions in US law, the intent of actions is an important element of determining whether a property can be financed with a commercial or residential mortgage. In the case of owner occupied residential properties, the government will look at why you put your property into a corporate entity. If the sole purpose is to get a commercial loan (translate that to mean: avoid being restricted by residential lending rules) then it does not qualify as a commercial property and cannot be funded by a commercial lender.

Assuming that you have a property already in a corporate entity – to protect assets, to separate assets, or for any other reason – you can then contact a hard money commercial bridge lender, such as Avatar to get a loan. You can expect to receive up to 65% of the quick-sale value (see above). If you have a mortgage on the property, you will need to pay that off at closing with the proceeds of the loan. Avatar must fund in the first lien position.

To clarify whether your property qualifies for a hard money commercial bridge loan, contact Avatar at 888-886-0097.