A bridge loan is a short term, high interest loan used to acquire properties quickly. These properties normally won’t fit the criteria for permanent financing without some value add. These properties may need to be fixed up, leased out to the capacity a permanent lender requires, but it can also be used to purchased a very good property quickly, because the borrower may have certain time restraints.
LTV on Purchases
Bridge loans also known as hard money loans are usually given on a temporary basis, usually with terms of 12 to 24 months and interest only payments. Rates for these bridge loans are normally in the double digits and the borrower must have a clear exit strategy to get out of the loan. You will need to sell or refinance.
These type of real estate loans don’t have any prepayment penalties, so you can refinance or sell as soon as the property is ready.
What do lenders examine?
Obtain financing for lucrative residential buildings with multiple units, ensuring a steady stream of rental income.
Secure flexible funding options for acquiring or renovating lucrative commercial office spaces in prime locations.
Make strategic investments in properties combining commercial and residential spaces to optimize income potential and diversify your portfolio.
Our broker fee is two points (2% of the loan amount) on anything over $100,000 or four points on anything less than $100,000, or a minimum commission of $2,000, whichever is greater.
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