Short answer: many bridge, USDA and institutional lenders have minimum loan sizes, often $1M or more, plus per-property value floors on portfolios. A small, safe loan can be harder to place than a bigger, riskier one.
Real examples
- A $1M request against a $5M warehouse (20% leverage) was below many bridge lenders' minimums.
- A 60-home rural portfolio was blocked by per-property minimum values, but was still placed with a portfolio lender at 7.625% interest-only.
What to do
- Consider borrowing a bit more if you'll need it later anyway; it opens more lenders.
- Combine properties into one loan.
- Go to lenders whose sweet spot is small balance.
Related: Bridge loans · Cash-out refinance