Real Estate Investors Use Bridge Loans Versus Bank Loans
Will the days of bank lending ever return to the years leading up to 2008? In those days, as the old saying goes, “If you could fog a mirror you could get a loan.” But for real estate investors who can’t wait around for banks to make ‘turtle-like’ lending decisions, bridge loans or hard money loans are their only source of real estate financing. Particularly during 2008 to 2010 when bank lending was virtually locked up, real estate investors had no other alternatives for financing other than bridge loans. But what is a bridge loan, you may ask?
A bridge loan is a non-bank loan from a private money source. Bridge loans are of short duration and typically come with higher interest rates than bank loans. And what kind of real estate will a bridge lender finance? Just about anything from raw land to commercial buildings. For many commercial real estate investors who have loans coming due this year or next year, bridge loans may be their only option for refinancing their properties.
If you haven’t looked into alternative sources of financing for your real estate this year, consider using bridge loans versus bank loans. A bridge loan may mean the difference between getting a deal done this year and not getting it done. Until U.S. banks can successfully adapt to new lending standards, stress testing, and regulatory reform, bank lending will not be loosening up again for a long time, particularly for commercial properties.
Posted by Corey Curwick Dutton
What are the terms and conditions of your bridge loans?
Thanks!
Best regards,
Steve T. Belding
Tel: (904) 415-5263 call or text (24 / 7)
Steve,
In what State are you focusing? Please email us to: [email protected]. Would love to hear from you directly. Thank you.
Hello. I just bought an ugly house cheap in Cedar City Utah.
. I need a bridge loan of $15,000 for repairs..
Please call me at 435 267 4837