Is a Bridge Loan Right for Your Next Real Estate Deal

#1. Short-term capital without disrupting long-term financing

In 2025, Cetan Funds provided a residential bridge loan on a single-family rental in Eugene. The borrower needed quick access to equity to support a family-related need, but their bank could not close in time.

We funded the bridge loan, and the bank later completed permanent financing on a separate property, allowing the Cetan loan to be repaid within three months.

#2. Cash-out for maintenance and working capital

In 2023, Cetan Funds completed a cash-out commercial refinance in Hillsboro, Oregon. The borrower needed capital for deferred maintenance and business operations but wanted to avoid lengthy bank underwriting.

The bridge loan provided immediate liquidity, with exit options including refinance, sale, or repayment from cash flow. The loan has since been largely paid down through operations.

#3. Cash-out refinance tied to a development exit

In 2024, Cetan Funds funded a bridge loan in West Linn, Oregon, following a subdivision and partial sell-down of a townhome project. The prior lender required payoff, and the borrower needed additional capital to complete improvements on a remaining property.

We paid off the existing loan, provided cash-out, and structured the loan to allow partial releases as units sold. The project exited within term through a combination of sales and refinancing.

#4. Fast acquisition of a distressed asset

In 2025, Cetan Funds provided a commercial bridge loan for the acquisition of a 39-room boutique hotel in Astoria, Oregon. The experienced operators required a quick close and capital for repositioning.

The bridge structure supported both acquisition and renovation, allowing the project to move forward without delay.

#5. Reverse 1031 exchange on a multifamily acquisition

In 2025, Cetan Funds provided a bridge loan in Southern Oregon to support a reverse 1031 exchange for a 10-unit apartment complex. The borrower identified a time-sensitive opportunity but had not yet sold the relinquished properties.

We funded most of the acquisition and secured the loan with the investor's existing rental portfolio. As those properties are sold, proceeds are applied to the loan, completing the exchange and providing a clear path to exit within term.

Other circumstances when a bridge loan could be useful:

• When capital is tied up in other projects and you need liquidity to fund a new acquisition before an existing asset sells.
• When speed is critical and you plan to refinance into permanent financing after closing.
• For purchase and light to moderate renovations on largely self-funded fix and flip projects.
• For 1031 exchanges, including forward, reverse, and improvement structures.
• When refinancing is delayed due to seasoning requirements or property condition issues.

Bridge loans are effective in the right structure, but they are not appropriate for every deal. Their shorter terms and higher cost require a clear exit and disciplined execution.

Avoid using a bridge loan in the following situations:

#1. Owner-occupied residential properties

Bridge loans from Cetan Funds and most private lenders are for business-purpose use only and cannot be used for the purchase or refinance of a primary or secondary residence. Traditional mortgage lenders or brokers may have suitable alternatives.

#2. Unclear or weak exit strategy

If you do not have a defined path to refinance or sell within the loan term, the risk increases significantly.

#3. ​High-risk or non-stabilizable assets

Projects with major structural issues or weak market fundamentals may not qualify for takeout financing, creating exit risk.

#4. Long-term financing is already available

If you qualify for conventional financing at a lower rate and that loan option fits your timeline and goals, a bridge loan is typically not the right tool.

#5. Ground-up construction

For building projects, a construction loan is more appropriate. Cetan Funds offers a separate product for this scenario as long as the borrower is building for business/investment purposes.

For more information, see our residential construction loans or commercial construction loans.

#6. Debt bailout situations

Bridge loans are not intended to resolve distressed debt, defaults, or overleveraged positions. Adding leverage without a clear path out increases downside risk.

Private and hard money loans come in many variations, but most are short-term loans provided by an investor or group of investors when conventional financing is unattainable or undesirable.

Most private lenders and hard money lenders, like Cetan Funds, finance projects like fix and flip rehabs, rental properties, commercial bridge loans, land development, and many other unusual or unconventional properties and projects. A private or hard money loan can help real estate investors, developers, builders, and small businesses grow their portfolios and businesses faster than they could on their own.

Here at Cetan Funds, we empower people to build wealth through real estate.

Hard money (or private) loans are built for speed and flexibility. Banks often require months of paperwork, strict borrower qualifications, and rigid underwriting standards. At Cetan Funds, we base our lending decisions primarily on the value and potential of the property, not just the borrower's financial profile. This means we can finance properties and projects banks typically decline due to condition, complexity, or unusual circumstances.

Hard money loans are ideal for time-sensitive opportunities like fix-and-flip projects, new construction, or land development.

Cetan Funds offers two pooled private equity fund investments for Oregon residents who qualify and accredited investors. Our two funds, called Cetan Income Fund and Cetan Opportunity Fund, serve as the primary source of capital for the loans that Cetan Funds originates.

Rather than matching individual investors to individual loans, or borrowing capital from banks or Wall Street as many hard money lenders do, at Cetan Funds, we manage our own pool of funds. The investors own shares of their fund limited liability company and the principals of Cetan Funds manage the portfolio of loans owned by the fund. All loans are serviced by Cetan Funds. To learn more about the advantages of this structure, please contact us.

We can lend on most commercial and residential property in Oregon and SW Washington if the loan is for business or investment purposes. We provide short-term financing for bare land, land development, new construction, rehabs, and residential and commercial bridge loans.

No. We can only lend for business or investment purposes and do not lend on owner-occupied residential properties. Check out our blog to learn more about what we do and what we don't do.

We lend exclusively in Oregon and SW Washington because we know the market well and are committed to helping grow our local market. We lend primarily in Western, Southern and Central Oregon with an occasional loan in Southwestern Washington.

While we are primarily a "collateral-based lender," we do not solely look at the property/collateral. In our experience, who you lend to is just as important as what you lend on.

We strive to build long-term relationships with our borrowers, and we cannot achieve that if we focus solely on their real estate. So, we also take into consideration character, capacity, capital, and other conditions.

Weighing these important factors, which are often overlooked by other private and hard money lenders, helps us accurately measure risks for both our borrowers and our investors while allowing us to offer better all-around results for our clients.

We offer loans as short as 3 months and as long as 60 months; however, most of our loans are for 6 to 12 months. Plus, we build in automatic extensions to every loan to ensure borrowers have time to deal with unexpected events and circumstances.

Cetan Funds loans are customized to fit each specific scenario. Therefore, application and underwriting requirements can often vary depending on the situation. Typically, we require the following:

For Applications:

• Cetan Funds Business Loan Application (online form, link provided by your loan officer)
• Personal financial statements for all loan guarantors (form provided)
• Property/project description
• Summary of construction or investment experience (if applicable)

For Underwriting:

• 2 years of tax returns for all loan guarantors
• 3-6 months of bank statements
• Project/property-specific documentation (such as purchase/sale agreements, lease agreements, business financials, etc.)
• Detailed rehab or construction plans and budgets (if applicable)

Please contact us for more information on the application and underwriting requirements for your specific scenario.

We pride ourselves on moving quickly. Loan decisions are typically made within 1-2 business days, and pre-approval can often be issued just as fast. Once approved, we can close and fund in as little as 3-5 business days, depending on the project and documentation. That speed lets you secure capital and act on opportunities without the delays common with traditional lenders.

As quickly as 3-5 days.

Rates vary depending on the project. Typically, annual interest rates are 10-12%. Interest is only charged on the outstanding balance. Therefore, interest is not charged on construction or rehab funds until they are drawn. So, for most of our short-term construction and rehab loans, borrowers actually incur far less than 10-12% in interest expense. For more information, please contact us.

Origination fees vary depending on the project. Typically, origination fees are 2-4% of the loan amount. We also charge a $995-$1,495 administrative fee at closing.

Unfortunately, no. Our borrowers cannot live in the residential properties we finance for them.

The only exception is in very specific commercial loan scenarios. If you wish to get a loan on a property you would like to live in now, or in the future, please contact us so we can help you find a lender for that. We are happy to help.

No. Interest is only charged on the outstanding balance.

Construction draws are typically disbursed for work completed, materials purchased, or subcontractor invoices ready to be paid. Borrowers work directly with their loan officer, their main point of contact from start to finish on the project, to submit draw requests up to twice per month.

We do not charge fees for construction draws. Draw requests include a breakdown of the items awaiting reimbursement or payment, evidence showing the completed work or materials on site, and copies of subcontractor invoices or receipts over $2,500-5,000. Draws are typically processed in 24-48 hours.

Yes, we provide bare land loans. Each situation is different. Please contact us for details.

Cetan comes from the Lakota language and means "hawk spirit." We chose it to represent the values we bring to lending: vision to see opportunities, loyalty in building long-term relationships, and speed in delivering funding when it's needed most.

Supporting local organizations like the Cascades Raptor Center also helps us honor that connection to hawks and our beautiful raptors in the Pacific Northwest while giving back to the community.