In Lincoln, a bridge loan over $1 million is rarely a single house. Prices here are moderate, so large balances usually mean a package of rentals bought from a retiring landlord, a group of student houses near campus, a 5 to 8 unit building, or one of the few high-end homes in south Lincoln.
In short: LendingStreet offers residential investor bridge loans in Lincoln from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, interest-only terms and closings in as little as 10 days. Larger balances usually need a full valuation and are reviewed case by case. Most borrowers exit by selling some or all of the properties or by refinancing into a blanket, DSCR or jumbo DSCR loan once rents are in place.
The most common large deal here is a portfolio sale. Lincoln has many long-time landlords who bought houses near UNL, in the Near South and in Havelock decades ago and now want to sell everything at once. A buyer who can close quickly on six, eight or ten properties often gets a better price than one who needs separate loans for each.
Other large files include small apartment buildings of 5 to 8 units near downtown, a group of newer duplexes bought from a builder in northwest or south Lincoln, and occasionally a high-value home in areas like the Country Club neighborhood or the newer subdivisions around Yankee Hill and Firethorn. Buildings of 9 or more units are commercial and are covered at /commercial.html.
A DSCR lender sizes the loan on rent and appraised value. When the properties are partly vacant, need turnover work or the seller wants to close in two weeks, that is hard to do. A bridge loan buys the time to lease up, renovate and document rents, then refinance.
On these balances, expect a full appraisal on each property or a portfolio valuation. Lincoln has plenty of comparable single-family sales, but fewer for converted triplexes and fourplexes and for 5-8 unit buildings, so the appraiser may lean on income and on sales from Omaha or other Nebraska cities. Give the appraiser rent rolls, leases and any renovation budget.
Package pricing adds another wrinkle. A seller may accept less for the group than the sum of individual values. Lenders generally size the loan on the lower of purchase price and appraised value, so the discount helps your equity but does not raise the loan.
This example is illustrative and not a quote. An investor buys eight houses near UNL from a retiring landlord for $1,640,000. Several leases end in May, and the houses need about $60,000 of turnover work, paid from the investor's cash. The bridge loan is 75% of the price, $1,230,000, interest-only, with estimated monthly interest of about $10,250 while the houses are refreshed and re-leased for August.
By fall, the eight houses plus a fourplex the investor already owned are leased for $13,400 a month in total and appraise at $1,800,000 together. A blanket DSCR refinance at 65% of value is $1,170,000. Estimated principal and interest on a 30-year term is about $8,181, plus about $3,000 in taxes and $1,260 in insurance, for about $12,441 a month. Portfolio DSCR is about 1.08x.
| Stage | Amount |
|---|---|
| Package purchase price (8 houses) | $1,640,000 |
| Bridge loan at 75% | $1,230,000 |
| Estimated monthly interest on bridge | $10,250 |
| Value after lease-up (9 properties) | $1,800,000 |
| Blanket DSCR loan at 65% | $1,170,000 |
| Monthly payment with taxes and insurance | $12,441 |
| Combined rent | $13,400 |
| Portfolio DSCR | 1.08x |
A package of Lincoln rentals usually exits into a blanket portfolio loan or several individual DSCR loans. A 5-8 unit building exits into a DSCR loan for that unit count; see /dscr-loans-5-8-units-lincoln-ne.html. Jumbo DSCR balances are uncommon here, and when they happen they usually involve a group of properties rather than one home; see /jumbo-dscr-loans-lincoln-ne.html.
Selling is a real option too. Houses near campus can sell to owner-occupants or other investors, and selling two or three from a package can pay down the bridge loan and leave the rest to refinance. See /bridge-to-dscr-loan-guide.html.
Student rentals in Lincoln mostly turn over in late summer. A purchase that closes in spring gives you time to turn units and sign leases before August. A purchase that closes in September may carry vacancies until the following year, which means more months of bridge interest.
Build that into your plan. A bridge term should cover the time to lease up plus a cushion for the refinance itself, including appraisals and title work on every property.
Nebraska charges a documentary stamp tax on deeds, and title insurance and recording fees add up across many properties. After a sale, the Lancaster County Assessor's values tend to move toward the purchase price, and Nebraska property taxes are relatively high, so model the next tax bills on what you paid.
Insurance is the other line to price early. Hail is common, and a package of older houses with older roofs can be expensive to insure. Lenders will want coverage in place on every property at closing.
Underwriters look harder at the borrower on a $1M+ bridge loan. Expect questions about how many rentals you have owned and managed, whether you have handled lease-ups of similar size and how much cash you will have after closing for interest, repairs and vacancy.
A newer investor can still qualify, especially with strong reserves and an experienced local property manager. To start, send the property list, purchase price, rent roll and your plan through the form below, or call (877) 298-1001.
Yes. Our residential investor bridge loans run from $150,000 to $5M+, and larger balances are reviewed case by case. In Lincoln, most large files are packages of rentals or small buildings.
Rates start from 7.99%, and pricing depends on leverage, the properties, your experience and the exit plan.
Yes. Larger balances usually need a full valuation, either on each property or across the portfolio.
As little as 10 days on some files. Packages with many properties often take longer because of appraisals and title work on each one.
Yes. A blanket portfolio loan can combine five or more properties into one DSCR loan with release provisions for later sales.
Yes. Bridge loans are short-term and interest-only, which keeps the payment lower while you lease up or renovate.
Yes. Paying off a maturing loan while you finish leasing is a common use, as long as the exit plan is clear.
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