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Automotive Building Hard Money Bridge Loans

Automotive Building Hard Money Bridge Loans

Automotive building hard money bridge loans can be a useful short-term financing option for owner-operators and real estate investors who need fast (1-2 week) financing, rather than the customary 2-3 months it can take for a bank loan to close. For over a decade, First Capital Trust Deeds (FCTD) has originated a variety of loans for automotive buildings, including commercial hard money bridge loans.  

What Are Hard Money Bridge Loans? 

Hard money bridge loans are short-term real estate loans, usually between 6-24 months, made by non-bank lenders against a hard asset (real estate). Real estate investors and business owners rely on them to access financing quickly, resolve a financial obstacle, or buy a property that may not qualify for long-term financing. Bridge loans provide a temporary solution for a building owner that needs funding but can't use their bank at that time.  

Types of Automotive Buildings

The most common type of commercial buildings used by automotive businesses are:

  • Tire Shops
  • Auto Body and Paint Shops
  • Oil Change Shops
  • Brake Shops
  • Independent Auto Repair Shops

You’ll recognize these buildings and businesses in any city or town. 

Examples of Automotive Building Hard Money Loans 

Below are a few examples of automotive building hard money loans originated by FCTD.  

1031 Exchange — $450,000 Loan 

A Southern California real estate investor acquired a multi-tenant automotive building to complete a 1031 Exchange. Funded by a private trust deed investor, the low-leverage, 36-month term loan allowed the borrower to significantly pay down the loan balance. 

Automotive Repair Building

3-Year Private Money Loan — $2.13 Million

An investor acquired a Los Angeles-area multi-tenant automotive building with the intention of transitioning the building’s tenant mix from automotive to other uses, including small manufacturing and production. 

Automotive - Bellflower California Hard Money Loans

Hard Money Second Mortgage $180,000 

After experiencing one delay after another from the bank, the tire store owner used a hard money second mortgage to make a few upgrades to the recently constructed building. The hard money loan allowed the owner to start the project while continuing to work on refinancing the existing loan and the hard money second mortgage into a new first mortgage through their bank. 

Auto Repair Private Money Bridge Loans

Obtaining a Hard Money Bridge Loan for an Automotive Building

If you’re seeking a hard money bridge loan on an automotive building, you’ll need to get your financial records in order and hopefully have a somewhat recent Phase 1 Environmental Report. 

Below is the general list of items you need readily available before inquiring about a hard money loan: 

  • Personal financial statement (PFS)
  • Tax returns (business & personal)
  • 12 months of business bank statements
  • Investment account statements
  • Franchise agreement (if applicable)
  • YTD financial statements 
  • Appraisal from previous loans
  • Environmental Report — phase 1
  • Entity documents
  • Exit strategy — letter from a bank, purchase & sale agreement (if you’re selling the property)


If you're searching for an automotive building hard money bridge loan for a property you own, FCTD may be able to help. We've originated several short-term bridge loans for both owner-operators and investors of these types of properties. For the best chance of success, it's best to prepare with a strategy on how you'll use the loan, and how you'll pay it off in a timely manner. 

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