Milwaukee is a moderately priced market, so a $1M+ bridge loan here usually covers more than one building: a package of duplexes, a pair of Cream City brick buildings on the East Side, or a whole portfolio whose bank loan is coming due. High-value homes on the North Shore are the exception.
In short: LendingStreet makes residential investor bridge loans in the Milwaukee area 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 largest single properties, a jumbo DSCR loan.
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 balances, expect a full valuation on each property, a review of your experience and plan, and enough liquidity to carry interest while the properties stabilize.
This example is illustrative and not a quote. An investor owns five duplexes and two 6-unit brick buildings, worth about $2,300,000 today. A bank loan of $1,450,000 matures in six weeks. Several units are vacant after turnover, so the portfolio cannot yet qualify for a long-term loan at the needed amount.
A bridge loan of $1,570,000 pays off the bank and funds $120,000 to finish units. Estimated monthly interest is about $13,738. Once the units are leased, total rent reaches $21,500 a month and the portfolio appraises at $2,450,000.
A blanket portfolio refinance at 70% of value is $1,715,000, enough to retire the bridge. Estimated principal and interest is about $11,992, plus $4,300 in taxes and $1,250 in insurance, for a payment of about $17,542 and portfolio DSCR of about 1.23x.
| Stage | Amount |
|---|---|
| Maturing bank loan | $1,450,000 |
| Work to finish units | $120,000 |
| Bridge loan | $1,570,000 |
| Estimated monthly interest | $13,738 |
| Value after lease-up | $2,450,000 |
| Blanket refinance at 70% | $1,715,000 |
| Monthly payment after refinance | $17,542 |
| Portfolio DSCR | About 1.23x |
Many Milwaukee landlords financed their portfolios with local banks on five- or seven-year terms. When those loans mature, the bank may not renew on the same terms, especially if occupancy has slipped or the owner wants to pull cash out. A bridge loan buys the time to fix vacancies and refinance on the owner's schedule rather than the bank's.
Start early. A bridge payoff with weeks to spare is far less stressful than one with days. Ask the bank for a payoff letter as soon as you know it will not renew, and gather leases, rent rolls and tax bills for every property.
A bridge is also useful when a portfolio is being split between partners or heirs. One party can buy out the other quickly with short-term money, then refinance into a blanket once the dust settles.
Milwaukee's East Side, Lower East Side and areas near Marquette have handsome brick buildings with five to eight units. Many have strong locations but dated kitchens, baths and systems, and rents below what renovated units command. A bridge loan can fund the purchase and work, with a DSCR refinance once units are re-leased. Max LTV on 5 to 8 unit buildings varies by program.
These buildings often have shared boilers, older wiring and original windows, and the city may require updates during renovation. Get contractor bids and check for open orders from the Department of Neighborhood Services before you close.
City of Milwaukee property taxes are high, and the assessor updates values frequently. Wisconsin's real estate transfer fee applies at purchase and sale. During the bridge, budget interest, taxes, insurance, heat and utilities on vacant units, and winter weather delays on exterior work.
Heat on vacant units is easy to forget. A building with several empty flats in January still needs to be heated to protect the pipes, and that bill falls on the owner. Lead work on older buildings can also add time and cost, so include it in your renovation budget.
With five or more properties, a blanket portfolio loan is a natural exit: one loan, one payment and releases for selling individual buildings. Individual DSCR loans work for single properties. Our jumbo DSCR program, roughly $1.5M and up, fits Milwaukee's highest-value homes and larger buildings. Some investors sell one or two properties after renovation to pay down the bridge.
A bridge-to-DSCR plan works best when the target rents are backed by recent leases on similar units nearby.
A DSCR or blanket loan qualifies on today's rent. Vacant units, below-market leases or deferred maintenance can keep a portfolio from qualifying at the amount you need. A bridge loan covers the gap. If the properties already rent at market, going straight to a blanket or DSCR loan may cost less, and we will tell you. Size the bridge term to the plan, with room for winter delays on any exterior work.
Send the deal through the form below or call (877) 298-1001.
Yes. Our residential bridge program runs to $5M+ on 1 to 8 unit properties. In Milwaukee, large balances usually mean several properties.
Larger balances usually need a full valuation of each property.
Rates start at 7.99% for strong files. Large balances are priced case by case.
Yes. Payoff of a maturing loan is a common use, as long as there is a clear exit.
In as little as 10 days with a complete file.
A blanket portfolio loan or DSCR loans once units are leased, or a sale.
Not in this program. Those are commercial loans.
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