Updated: Jun 15
In the world of private lending, real estate entrepreneurs are building strong careers investing in real estate utilizing asset based loans.
An asset based loan product is based on the value of the available equity in the property, it closes faster than a traditional mortgage, and requires less paperwork.
One of the most common asset based loan products are bridge loans and they are quickly becoming a perfect solution for real estate investors who are looking to grow their investment portfolio
What are bridge loans?
A bridge loan is defined as a short-term (12-24 months) real estate loan that closes faster than term loans or conventional loans. Real Estate Investors work with lenders who offer bridge loans, because not only do they close quickly, the guidelines are more lax, therefore there is less underwriting and documentation needed.
Real Estate Bridge loans are temporary loans, secured by the asset (real estate), the typical property bridge loan has a term of 12-24 months, although many bridge loan lenders will grant the owner the option to extend his loan for six months to one year.
Why should you get a bridge loan?
There are more benefits than you can count for with bridge loans. The greatest benefit is the speedy approval process. As a real estate investor, with a simplified approval process, it becomes quick, which is key to getting a great real estate property before someone else does. However, as a result of the faster process, they have higher interest rates.
If you are a real estate investor that does not have a stable cash flow or if you are self-employed, this is perfect for you. The private lender does not look at your salary or tax returns so you don’t need to worry if you do not have a stable income. Another benefit is how the loan is utilized, it doesn’t need to be solely purchasing a specific property but can be used for a variety of purposes. For example, it can be used for Cashout or Rate & Term programs.
Since it’s a bridge loan, it can give you the flexibility you need to stay afloat and let your real estate business thrive.
Why Should You Use a Bridge Loan?
It's Straightforward & Easy : This type of loan has short-term financing (12-24 months) for real estate investors, who prefer to finance the purchase and/or rehab of their investment property, with a Fix and Flip loan (also a Bridge Loan) or a Cash Out Refinance loan.
Quick Access to Funds: With conventional loans, there are qualifications that restrict you from getting access to those funds. With a Bridge Loan there are less guidelines, underwriting, and restrictions that will provide you with quick access to financing.
For Every Type of Real Estate Investor: A Bridge Loan is a great solution for any real estate investor - at all experience levels.
Options for all types of Properties: At Stratton Equities we have Bridge Loans that are tailored to your investment needs. Here are some of our Bridge Loan options for Real Estate Investors; Fix and Flip, Cash Out Refinance, or Purchase Money.
BRIDGE Loan Summary
Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse
Rates Starting at 7.25%
$100K – $5M
Up to 75% LTV
Blanket Loan Options Available
9-24 Month Terms
Interest Only Payments
Purchase, Refinance, or Cash Out
Foreign Nationals Eligible
No Prepayment Penalty Option Available
How do you apply for a bridge loan?
If you need a quick streamlined process with a repayment phase of 12-24 months. With less underwriting and documentation, these loans can be approved quickly and even extended if you wish. There is also no minimum FICO requirement. These are great loans for real estate investors with any experience level. They also work for the majority of investment properties.
Call us at 800-962-6613 or contact us at email@example.com and apply now by clicking here to find out whether you are eligible for loan pre-qualification!