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Summary: In times of COVID/Post-COVID, many investors remain concerned and confused by the commercial real estate market. While it is certain that some sectors of commercial real estate (e.g., office, hospitality and retail) will be challenged for many years to come, one area that will continue to provide consistent, low-risk and high rewards (vs other fixed income investments) will be bridge loans. When banks are stressed, as they are currently, securing even the simplest of loans from a conventional lender can be difficult and time-consuming, whereas bridge lenders – who lack internal bureaucracy – can often provide a loan in days or weeks. Bridge loans are generally provided at a lower loan to value than conventional bank or government-backed loans but require higher rates. A typical bridge loan might be 50%-65% of the appraised property value at a rate anywhere from 8% – 12%. A well-disciplined and experienced bridge lender will provide consistent returns to investors above 10% and specific deals with leverage can even provide returns in the high-teens, all with low-leverage loans that bare less risk than providing equity, which in many cases, provide similar returns at much greater risk. More...