Sep 28, 2023 5 Min read
In the realm of commercial real estate financing, mini-perm loans have gained prominence as a flexible and practical financial tool. These loans bridge the gap between short-term financing and long-term mortgage solutions, offering borrowers an advantageous option for project completion and stabilization. In this blog, we will delve into the intricacies of mini-perm loans, exploring their definition, purpose, advantages, and their role in commercial real estate.
Mini-perm loans are a form of intermediate financing that provides developers and investors with capital to complete a commercial real estate project, stabilize operations, and secure long-term permanent financing. They typically have a term ranging from two to five years, allowing borrowers to obtain essential funds while establishing the project's viability before transitioning to long-term financing options.
Mini-perm loans serve various purposes in commercial real estate projects. They are commonly used to:
While mini-perm loans offer several advantages, borrowers should consider the following:
Mini-perm loans play a crucial role in commercial real estate financing by providing developers and investors with a flexible financing option to complete projects, stabilize operations, and secure long-term financing. Their unique features, including flexibility, lower interest rates, and reduced refinancing risks, make them an attractive choice for borrowers. However, it is essential for borrowers to carefully consider eligibility criteria and formulate viable exit strategies to maximize the benefits of mini-perm loans in commercial real estate ventures. When you need a partner that can connect you to the right lenders and get you the most competitive financing terms, contact Terrydale Capital today!
Partner With Terrydale Capital for Your Debt Financing Needs
When it comes to debt financing, understanding the right timing, process, and options is crucial. At Terrydale Capital, we provide a comprehensive range of commercial loan solutions tailored to meet your business's unique needs.