The words hard money are a search phrase, not a product we fund. The loan, when one is made, is a private lender's note. Our work is to match a business-purpose story with a private or bridge lender that will read it, and to say when the story belongs at a bank instead. Arizona bridge is the page that already describes that arranged capital. This page is for the reader who used the other name. A comparison of lender types, without a ranking and without firm names, is Arizona bridge lender types. How those types differ in structure is lender types compared.
Collateral is commercial real estate, or an investor residential property of one to four units that the borrower does not occupy. A loan for a person who will live in the property is not here. The OCC's March 2022 Commercial Real Estate Lending booklet tells national-bank examiners that commercial real estate lending includes construction financing and income-producing property. We are not a national bank, and the booklet is not our credit policy. It is a public description of bank supervision. The Mortgage Bankers Association's site is the industry context around those loans. TreppTalk is public commercial-real-estate commentary. None of the three is a rate.
A bank bridge and a private bridge are different conversations. A bank may want a deposit relationship and a slower committee. A private lender may move on the asset and the plan, with its own documents. We arrange both kinds of introduction when they fit. We do not call one of them better. A loan that is already mature and needs a new permanent note is Arizona refinance. A layer behind a senior loan is Arizona mezzanine, which is debt placement, not a securities offering. A neutral note on bank credit versus private credit is bank versus private lenders.
What to ask before you use the hard-money label
Who is the lender of record? If the answer is Capital Market Funds, the answer is wrong. What is the exit, and is that exit a hope or a commitment from a takeout lender? What is recourse? What must be true to extend? A short loan that cannot be extended and has no takeout is a sale timeline, and the sponsor should know that on day one.
The DSCR calculator is for a payment test after you have income. Many bridge files do not have that income yet. Do not force a future rent into the calculator and call it current coverage. Bring the business plan instead.
Business purpose, and nothing that sounds like a consumer pitch
We will not describe this as a loan on a property the borrower occupies. We will not quote a coupon, a fee sheet, or a closing speed as a promise. Speed is a reason sponsors ask. It is also the thing a lender can refuse. Craig Hoebing arranges the file from Scottsdale under CMB-1047342 and NMLS 1445066. Capital Market Funds is not a Fannie Mae DUS lender and is not a hard-money lender.
Arizona private bridge market context
- OCC supervises bank CRE, not this desk
- The OCC March 2022 handbook booklet covers commercial real estate risk at national banks and federal savings associations, including construction and income-producing property. Capital Market Funds is not a bank and does not lend under that booklet. OCC Comptroller's Handbook, Commercial Real Estate Lending
- MBA industry context
- The Mortgage Bankers Association's site is commercial mortgage industry context. It is not a list of Arizona private lenders and not a ranking. Mortgage Bankers Association
- TreppTalk is commentary
- TreppTalk publishes public commentary on commercial real estate credit. A post there is not a term sheet and not a rate from this office. TreppTalk
Bank bridge versus private bridge, arranged either way
Neither column is a loan from Capital Market Funds. Neither column is ranked.
| Bank bridge | Private bridge | |
|---|---|---|
| Who signs the note | A bank | A private lender |
| Why sponsors ask | A relationship and a possible takeout at the same bank | A plan or a date a bank committee will not meet |
| What we do | Arrange the bank conversation | Arrange the private-lender conversation |
Arranged capital when sponsors say hard money
| Source | When it fits |
|---|---|
| Bridge & Private | Arizona private and bridge debt arranged with private lenders for a business-purpose plan that is not a permanent loan yet. |
| Bank | A bank bridge when the bank's timeline and recourse actually fit the Arizona asset. |
| Life Company | A life-company hold is a permanent conversation for stabilized income property, not a substitute for a short private loan. |