Bridge Loan
Bridge Loan
Benefits of a Bridge Loan
The main benefit of bridge loans is that the financing deals are flexible to help individuals and corporations secure the intermittent capital they need for their real estate investment projects. Project expenses can pop up out of nowhere which can cause issues with your project, but a bridge loan will provide you with the cash flow you need to continue operations. Bridge loans are also used to rehab and stabilize multifamily until a permanent loan is secured.
Bridge loans are known for their flexibility, which makes them a great option for a wide variety of different types of projects that you can work with.
Borrowers will sometimes apply for a permanent loan even though it’s unlikely they will qualify. When the request is declined and the deal is in danger, then the bridge loan becomes a Hail Mary.
Once the property is stabilized with steady income, the borrower can look at taking out the bridge loan with a perm loan if they choose to hold the property.
Bridge Loan Rates
- Bridge rates from 10% to 12%
- 1–3-year terms
- Rehabs, Repositions & Distressed Assets
- $100K-$10 million loan sizes
- Up to 80% LTC financing 100% of rehab
- 7-30 days closing
- 5+ Units Fix/Flip & Construction
- 5+ Construction to Perm
- Commercial Construction
- Multifamily 5+ units