Bridge loan vs hard money — what's the difference?

Detail

Both are short-term, asset-secured, and fund fast. The difference is who's behind the capital and what they require. Bridge lenders like Inflection Financing underwrite the asset, the sponsor, and the exit — and price institutionally (8.9%–13.9%). Hard money lenders underwrite primarily the asset and price for risk (10%–18%+). For acquisitions, recapitalizations, and time-sensitive CRE plays where the sponsor and exit are clean, bridge financing is dramatically cheaper than hard money for the same speed.

Key facts

• Bridge rate: 8.9%–13.9%
• Hard money rate: 10%–18%+
• Bridge: institutional underwriting, exit-focused
• Hard money: asset-only, no exit underwriting