WHAT IS A BRIDGE LOAN?
Bridge loans are short-term, interim financing solutions that are utilized to quickly acquire a property while you wait for long term financing to be approved by a more traditional bank. It is a temporary, short term loan requested when time is of the essence and you need to purchase the property quickly before another investor picks it up.
The banks can take a long time to approve funding for projects. Don’t let that process prevent you from moving forward with those deals. There’s lots of competition in the real estate world, and if you wait weeks for financing to come through, you might lose out on that deal all together.
WHO USES BRIDGE LOANS?
Investors who need to move quickly on deals where the big banks can’t keep up. The banks require credit checks, bank statements, tax statements, resumes, etc. The process for an approval can take well over a month. Investors can’t wait that long.
WHAT KIND OF DEALS CAN BRIDGE LOANS BE USED FOR?
Residential and Commercial Development
Mixed Use Projects
Any project where long term financing is a preferred option but you need to move quickly to secure the deal
WHAT ARE THE TERMS OF THE LOAN?
By their very nature, these loans are typically longer than a standard fix and flip style loan. Every loan is different, but typically this would be a 12 month term. Extensions can be granted. Black Label Capital needs to understand the full scope of the project to provide the best financing terms.
Interest rates can vary depending on the length of the loan requested, the amount and the nature of the loan. Provide us with the details of your project so we can tailor a financing option for you. Contact us today with the details so we can provide you with financing options tailored to your deal.