A bridge loan is a type of hard money loan that comes from a private real estate lender. It is a perfect funding option for those who are in need of capital to cover their day-to-day cashflow while they wait to secure permanent funding. Learn about bridge loans to see if it it the right hard money loan type for your project.
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What Is A Bridge Loan?
A bridge loan is a short-term loan that is used to cover the day-to-day expenses of a project while the individual or corporation looks for long-term funding. A bridge loan isn’t used to fund the entire project, but it is used in order to provide the project with the cashflow it needs to keep running. This type of loan is incredibly common for projects that have unexpect expenses pop up or for projects that have taken longer than schedule. This will help the individual or corporation so they don’t run out of money and they don’t have to stop working on the project. A hard money bridge loan will help make sure that your project never gets delayed.
A hard money bridge loan is coming from a private real estate lender which makes deals much more customizable and flexible for specific needs of both parties. This is one of the main benefits of working with a private real estate lender compared to working with a traditional banking institution. A hard money bridge loan is incredibly quick to help you receive funding as soon as possible. Which is one of the main benefits of working with a hard money loan lender.
What Are The Benefits of A Hard Money Bridge Loan?
Hard money bridge loans come with a vareity of different benefits that makes them a better option compared to traditional bridge loans from a bank. The most well known benefit is the ability to receive funding in a matter of days compared to receiving funding in months like traditional institutions. The importance to receive funding quickly is one of the most important things for a bridge loan. Below are a full list of benefits of a hard money bridge loan.
- You are able to receive funding much quicker from a private real estate lender compared to receiving funding from a traditional banking institution.
- The funding terms, rates, and deal are much more flexible and can be customized to help fit the project.
- The funding process is quicker but it is also less of a headache because there is less drama involved with applying for a hard money loan.
Do I Qualify For A Bridge Loan?
A bridge loan is often referred to as interim financing or gap financing because of it’s ability to provide short-term funding for those who are still looking for a long-term funding option. Typically it can be difficult to qualify for a bridge loan if you are working with a traditional banking institution, but by working with a hard money lender you will find it much easier to qualify. When you work with a hard money lender, you will be working with a private real estate lender who typically have much less strict requirements in order to qualify.
A standard bridge loan from a traditional institution such as a bank or a credit union will require thorough business plans, a background check, a credit check, mountains of paperwork, and will require weeks of back and forth discussion. Thankfully working with private real estate lenders is quicker and the overall process is much smoother. Use the form at the bottom of the page or on our apply now page to receive a free loan quote for your next project.
What Is A Swing Loan?
A swing loan is another name for a bridge loan. It is a loan that is used to cover expenses in the interim before a more permanent source of capital is secured. A swing loan and a hard money bridge loan are typically considered to be the same thing. A bridge loan can be caused a swing loan, a gap loan, gap financing, interim financing, interim loans, property bridging loan, bridge mortgage, bridge finance, as well as other names.
What Is Bridge Financing?
Bridge financing is a type of bridge loan that helps to bridge the gap in time in which a company can expect to run out of funds, and the time they expect to receive more funds. Often times bridge financing is used interchangeably with bridge loans as bridge financing is essentially the same thing as a bridge loan.
Other Types of Private Real Estate Loans
Our network has years of experience working with a wide variety of different private real estate loans. There are different types of loans that a great for different types if projects and ventures. Learn more about other hard money loan types.
Apply For A Hard Money Bridge Loan Quote
Fill out the form below for a free loan quote and to learn how our private lending network can help you with your next project.