When a retiring Twin Cities landlord sells a dozen units at once, or a high-value home near the lakes needs to close before a permanent loan can be arranged, a large short-term bridge loan buys the time to get it done.
In short: LendingStreet provides residential investor bridge loans in the Minneapolis-St. Paul area from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%. Terms are short and interest-only, closings can happen in as little as 10 days, and larger balances usually need a full valuation. Typical exits are a sale or a refinance into a DSCR, blanket or jumbo DSCR loan once the properties are leased and stabilized.
Our bridge program runs from $150,000 to $5M+, and balances above $1M are reviewed case by case. In the Twin Cities, large balances usually come from one of three situations: buying a package of rental properties at once, buying a single high-value home or small building, or paying off a maturing loan before a long-term refinance is ready.
All of these are business-purpose loans on 1-8 unit non-owner-occupied investment property. Apartment buildings with 9 or more units fall under commercial financing.
Many long-time Minneapolis and St. Paul landlords hold portfolios of duplexes, triplexes and fourplexes bought decades ago in Powderhorn, Longfellow, Northeast, Frogtown and the Midway. When they retire, they often prefer to sell everything at once. Buyers who can close quickly on the whole package can negotiate better terms than buyers financing each building separately.
A bridge loan lets you close on the package, deal with turnover and deferred maintenance, bring leases to market where rules allow, and then refinance into a blanket portfolio loan or separate DSCR loans.
At the top of the market, single properties can reach seven figures on their own. Investors buy homes in Edina, Wayzata, the Lake Minnetonka communities, Linden Hills, Kenwood and Lowry Hill, often to lease to executives or relocating families. These properties often need work or a vacancy period before they can be leased, which makes a permanent loan hard to arrange at purchase.
On large single-asset loans, expect a full appraisal and closer review of the exit. Leverage can be lower than on smaller balances and varies by program.
This example is illustrative and not a quote. An investor buys four duplexes and one fourplex, 12 units in total, in south Minneapolis and St. Paul for $1,800,000 from a retiring owner who wants one sale. Several units are below market and two are vacant.
The bridge loan is $1,350,000, or 75% of the purchase price. The estimated monthly interest-only payment is about $11,250. Over the next year, the investor fills the vacancies and renews leases at market where rules allow, bringing rent to $17,400 a month. With an updated value of $2,100,000, a refinance at 70% would be $1,470,000, enough to pay off the bridge.
On the new loan, estimated principal and interest is about $10,028. Adding taxes of $2,300 and insurance of $950, the payment is about $13,278 and portfolio DSCR is about 1.31x.
| Item | Bridge stage | Refinance stage |
|---|---|---|
| Value used | $1,800,000 purchase | $2,100,000 |
| Loan amount | $1,350,000 | $1,470,000 |
| Estimated monthly payment | $11,250 interest-only | $10,028 principal and interest |
| Taxes and insurance | Paid from reserves or cash flow | $3,250 |
| Monthly rent | Lease-up in progress | $17,400 |
| DSCR | Not used to size the bridge | 1.31x |
Investors who financed with short-term or balloon loans sometimes face a maturity date before the properties are ready for permanent financing, for example during a renovation or while units are still being leased. A bridge loan can pay off the maturing debt and give the plan another stretch of time.
Lenders reviewing that request will want to know why the original plan took longer and what changes now. A clear rent roll, renovation status and a realistic timeline to the refinance help.
The same tool works for investors who bought with cash and want to pull equity out quickly to fund the next purchase. A bridge loan against a group of Twin Cities rentals can free up capital in weeks, and a long-term DSCR or blanket refinance can follow once seasoning and leasing line up.
Every bridge loan needs an exit, and in Minneapolis-St. Paul the exit math depends on local factors. St. Paul's rent stabilization ordinance can limit how fast rents rise on many units, so do not assume a large rent bump in your refinance figures. Hennepin and Ramsey county non-homestead taxes and higher insurance premiums for older buildings also affect the ratio on the permanent loan.
For high-value single homes, the exit is often a jumbo DSCR loan. For packages, it is usually a blanket portfolio loan or several individual DSCR loans.
Bridge loans can close in as little as 10 days, but large balances usually need a full appraisal, and package deals need a valuation for each property. Order inspections early, especially on old boilers, roofs and foundations.
Winter matters for renovation timelines. Exterior work, roofing and concrete slow down from December to March, so build that into the loan term and your budget.
Rental licensing also affects timing. Minneapolis and St. Paul inspect rental properties, and a building with open code orders may need repairs before units can be re-rented. Ask the seller for license status and inspection history on every property in the package, and plan the first months of the loan around clearing anything outstanding.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address list, purchase price, rent roll and exit plan through the form below, or call (877) 298-1001.
Our residential investor bridge program runs from $150,000 to $5M+ on 1-8 unit properties. Balances above $1M are reviewed case by case.
Bridge rates start from 7.99%. Pricing on large balances depends on leverage, the properties and the exit.
Larger balances usually need a full valuation, and package deals usually need one for each property.
Yes. Packages of 1-8 unit properties are a common use, with a later refinance into a blanket or individual DSCR loans.
Bridge loans can close in as little as 10 days, but large or multi-property files often take longer because of valuations and title work.
Yes, if the properties and the plan support it. Expect questions about why the original timeline slipped and how the refinance will work.
It can limit rent increases on many units, so build the refinance plan on rents the ordinance allows.
Not under this program. Buildings with 9 or more units fall under commercial financing.
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