There is definitely an appropriate time and place for private bridge financing. Here are just a few of the reasons our clients have chosen bridge financing as a way to improve their financing opportunities:

1. Quick Close - "A bird in the hand is better than two in the bush" Private bridge financing allows a borrower to capitalize quickly on an opportunity that would not otherwise be possible without speed of execution.

2. Reposition Property - A bridge loan can give a borrower time to reposition the property i.e., lease- up, make improvements, attract new partners etc. enhancing the opportunity for long term financing.

3. Flexibility - Private bridge financing usually comes with no prepayment penalty and gives a borrower the ability to speculate on future financing opportunities.

Sharp Rebound in Economic Growth, Benign Inflation in First Quarter MBA (5/1/2006) Velz, Orawin

Strong economic data as well as a weak Treasury auction helped pushed up the yield on 10- year Treasuries to 5.12 percent on Wednesday-the highest level since May 2002. Federal Reserve Chairman Ben Bernanke's testimony before the Joint Economic Committee on Thursday partially reversed the increase in the yield, as he suggested that the Fed might need to pause raising the target rate in the near future-even if inflation remains a threat-to allow more time to get a true picture of the economy.

However, Bernanke cautioned that a pause might not signal the end of rate hikes. The comment did not change the expectation of a 25-basis point increase in the fed funds rate at the Federal Open Market Committee (FOMC) meeting on May 10 but the market has priced in a pause at the following meeting at the end of June, with the probability of a rate increase reducing from 60 percent to 35 percent. The 10-year yield hovered around 5.07 percent by mid Friday afternoon-6 basis points higher than the rate on the previous Friday.

"I have three precious things which I hold fast and prize. The first is gentleness; the second frugality; the third is humilty, which keeps me from putting myself before others. Be gentle and you can be bold; be frugal and you can be liberal; avoid putting yourself before others and you can become a leader among men."
-Lao-Tzu

"The sufficiency of my merit is to know that my merit is not sufficient."
-St Augustine

"After crossess and losses men grow humbler and wiser."
Benjamin Franklin

Cornerstone Commercial Mortgage specializes in commercial real estate finance. We act as mortgage consultants, focusing on providing the appropriate financing solutions for each client. We work with investors and developers on all product types from Land loans to permanent loans providing the best financing option available.

John P. Lloyd, President
Phone: (702) 385-2658
Cell: (702) 379-3468
Email: john.lloyd@cmlv.net