Commercial R.E Investors Turn to Bridge Loan Financing
Before the real estate crisis, many commercial real estate investors weren’t familiar with bridge loan financing. If fact, before 2008, most commercial real estate investors were easily able to qualify for bank financing. In today’s market, the biggest complaint of commercial real estate investors is not being able to obtain bank financing. For this reason, many investors have turned to bridge loan financing to finance existing or new acquisitions, rehab or tenant improvements, and new construction.
Even for the best properties, in the best locations, bank financing is hard to come by. For borrowers who don’t qualify at the bank, bridge loan financing, or private money, is a viable option. Bridge loans are non-bank loans which allow commercial real estate investors a short term financing alternative of 1-5 years. Bridge lenders can typically close faster than a bank and have less stringent requirements for giving out loans. What is a bridge loan? (Read more about the definition of bridge loan financing on one of our previous posts on this topic here)
If you are a commercial real estate investor who is complaining about the lack of financing options, check out bridge loan financing versus bank financing. Until 2015, bank loans on investment properties will remain difficult for real estate investors to obtain due to new banking standards. Because bridge loans are not widely understood by real estate investors, check out our blog called, ‘Hard Money 101’. Or to inquire about our bridge loans, take a look at our bridge loan programs.