In Memphis, a $1M+ bridge loan rarely means one property. With many rentals selling for $100,000 to $250,000, large balances usually come from buying ten or more homes at once, from a seller exiting a portfolio, a wholesaler with a package or an estate that wants one closing.
In short: LendingStreet makes residential investor bridge loans in Memphis from $1M to $5M+ on 1 to 8 unit properties, with rates from 7.99%, interest-only payments and closings in as little as 10 days. Larger balances are reviewed case by case and usually need a full valuation of each property. Typical exits are a sale or a refinance into a blanket portfolio loan, DSCR loans or, for the rare single property large enough, a jumbo DSCR loan.
Memphis is a volume market. Common large-balance situations:
Our residential investor bridge program runs from $150,000 to $5M+ on 1 to 8 unit properties. Rates start at 7.99%. Loans are short-term and interest-only, and closings can happen in as little as 10 days with a complete file.
On large packages, expect a valuation on each property, a review of your renovation budget and track record, and enough liquidity to carry interest and holding costs while homes are renovated and leased. A package of leased homes with modest work is a simpler file than a group of vacant homes needing full renovations.
This example is illustrative and not a quote. An investor buys 12 single-family homes in Raleigh, Frayser and Hickory Hill for $1,500,000, an average of $125,000 each, and plans $264,000 of renovation across the package. The bridge loan covers 75% of the price plus the full renovation budget, for $1,389,000. Estimated monthly interest is about $12,154.
After renovation and re-leasing, the homes rent for an average of $1,350, or $16,200 a month, and appraise at $2,040,000 combined. A blanket portfolio refinance at 70% of value is $1,428,000, enough to pay off the bridge. Estimated principal and interest is about $9,985, plus $2,580 in taxes and $1,860 in insurance, for a payment of about $14,425 and portfolio DSCR of about 1.12x.
| Stage | Amount |
|---|---|
| Purchase, 12 homes | $1,500,000 |
| Renovation budget | $264,000 |
| Bridge loan | $1,389,000 |
| Estimated monthly interest | $12,154 |
| Value after work | $2,040,000 |
| Blanket refinance at 70% | $1,428,000 |
| Monthly payment after refinance | $14,425 |
| Portfolio DSCR | About 1.12x |
A package of homes across several Memphis neighborhoods is really a dozen separate deals. Walk or have someone inspect every house, check every lease and confirm which tenants are actually paying. Look up each property's tax record and code enforcement history. Some packages include a few homes that drag down the whole deal; pricing them correctly is where investors make or lose money.
Ask the seller for rent rolls, property management reports and recent repair invoices. These also help the lender size the loan and the refinance. Title work on a package also takes time, since each home has its own chain of title, liens and tax status, so order it early.
Typical renovation items on older Memphis ranches include HVAC, roofs, plumbing, electrical updates, flooring and kitchens. Contractor capacity matters when you are renovating a dozen homes at once. Stagger the work so some homes are leasing while others are under construction, and budget interest and holding costs for the full timeline.
Vacant homes in some neighborhoods are at risk of theft and break-ins. Secure them quickly and confirm your insurance covers vacancy during renovation.
A property manager with renovation and leasing capacity across several Memphis neighborhoods is worth a lot on a package this size. Lenders like to see who will manage the homes after the work is done, since the refinance depends on the rent roll they build.
Homes inside Memphis pay both city and Shelby County taxes, assessed at a 25% assessment ratio on appraised value. Tennessee charges a transfer tax on deeds and a tax on recorded mortgages, which add up on a large package. Budget each home's taxes from its current record and watch for reappraisal changes.
A blanket portfolio loan is the natural exit for a Memphis package: five or more properties under one loan, qualified on combined cash flow, with releases for selling individual homes. Individual DSCR loans also work for homes priced high enough to meet our $150,000 minimum. Our jumbo DSCR program, roughly $1.5M and up on a single property, fits only Memphis's highest-value homes.
Some investors sell part of the package after renovation, to owner-occupants or other investors, to pay down the bridge and keep the best homes.
A blanket or DSCR loan qualifies on the rent homes earn today. Vacant homes, below-market leases and properties that need work cannot support the loan you want on day one. A bridge loan buys time to renovate and lease, then the long-term loan follows. If the package is already leased at market rents, a blanket loan from the start may be cheaper, and we will say so. The bridge term should match the plan: long enough to finish renovations and lease every home, with a cushion for slower months.
Send the deal through the form below or call (877) 298-1001. Packages move fastest when every home's information arrives in one organized list.
Yes. Our residential bridge program runs to $5M+ on 1 to 8 unit properties. In Memphis, large balances usually mean packages of homes.
Larger balances usually need a full valuation of each property.
Rates start at 7.99% for strong files. Large packages are priced case by case.
On some programs, yes. The renovation budget can be part of the loan along with the purchase.
In as little as 10 days with a complete file.
A blanket portfolio loan once the homes are renovated and leased, or individual DSCR loans, or selling some homes.
Yes, as part of a package. The loan as a whole must meet our minimum.
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