Bridge Loan on an Empty Warehouse: How We Got All Our Cash Back Out

No conventional lender would touch an empty, ugly warehouse that had sat vacant for more than a decade. Matt Russell bought it anyway, renovated it with private money, and refinanced out with none of his own cash left in. Just under $900,000 to buy, more than 26,000 square feet, and about $2.4 million all in once the renovation, the interest, and the extension fees were counted. It appraised at $3.5 million with tenants in place, and the takeout loan came in at $2.4 million. That is the whole case for private money, and it is also why the hosts tell clients not to reach for it first. What we cover: Why no conventional lender would touch the building: empty, ugly, no business plan, no tenant lined up, and a long road to renovation and stabilization The structure: acquisition and renovation funds inside one private loan, with the partners' own equity down 12 percent interest with no interest reserves, so the payments came out of pocket every month at about 1 percent of the loan balance, split three ways (that rate is roughly five years old and is not today's pricing) A couple of loan extensions at a point and a half to two points each, because the rehab ran longer than planned The arithmetic that made it work: about $2.4 million all in, a $3.5 million appraisal with tenants in place, a $2.4 million refinance, and no cash left in the deal An agricultural bridge used to recapitalize a balance sheet instead of renovate a building: pay off the line of credit, pull equity out of the land, fund a year of working capital, and back to conventional financing in two years Why the round trip through private money can beat one conventional loan, since the permanent lender sizes off value and the borrower recaptures equity Speed as a real benefit and not just a cost: about a week to close the warehouse loan, and a week to two weeks against 90 days on a construction deal What has pulled capital into private lending since the 08 crisis, including borrowers who will pay a higher rate rather than get current on their tax filings Why 100 percent financing from a bridge or hard money lender is not a thing, and why putting your own money in widens your window of success when values fall or costs run over What these lenders are really underwriting: they write the loan prepared to repossess the property and sell it themselves, because they answer to their investors The three-tier split, conventional then alternative then hard money, with the middle tier at 8 to 12 percent and hard money at 10 to 14 percent, and the lowest bridge seen at 8 percent Chapters: 0:00 Bridge or hard money: are they the same thing 0:47 An empty warehouse nobody would finance 1:23 Purchase and renovation inside one private loan 2:24 Extensions, 12 percent, and no interest reserves 3:27 About $2.4 million all in 4:27 So why go hard money at all 5:17 The assets private money is actually for 6:17 Speed, fewer headaches, faster draws 7:15 An ag bridge that reset a balance sheet 9:35 A useful tool, not a first choice 9:59 What has pulled capital into private lending 12:47 Talking to banks in 2026 13:28 The takeout risk and the sensitivity analysis 14:18 Prepared to repossess, and the 100 percent myth 15:48 What bridge and hard money cost right now 17:08 Useful, but not your go-to 17:32 Three sides of the desk Also listen on Spotify: https://open.spotify.com/episode/5rUo... aaifg.com 1 (800) 896-3270 For education only. Every rate and range discussed is a snapshot as of the recording date, August 20, 2026, and is not a quote on your deal. The 12 percent figure is the historical rate on a loan closed about five years ago, not current pricing. Bridge and hard money terms vary by lender, property, and borrower. The deals described are specific projects, not typical outcomes. Talk to your lender, CPA, and attorney before structuring a deal. #CommercialLending #BridgeLoan #HardMoney #CRE