Category Archives: Bridge Financing

5 Ways to Finance a Business Acquisition

5 Ways to Finance a Business Acquisition

It is often said buying an existing business costs less than building one from the ground up. If you are an entrepreneur, and this is exactly what fuels your entrepreneurial vision, then knowing about the different options that you can leverage to raise capital for your acquisition venture is sure to help you.  Continue reading

Hard Money Loans 101: All You Need to Know

Hard Money Loans 101: All You Need to Know

Hello investors and rehabbers. We were thinking about you and your business—your business needs and the challenges that you face to fulfill these needs. While your management skills allow you to efficiently and productively handle challenges, the financial aspects are something that are not always under your control.Continue reading

Bridging the Informational Gap: FAQs About Bridge Loans

Bridging the Informational Gap: FAQs About Bridge Loans

There are often situations, where taking an investment decision for a real estate investor could be like taking a leap of faith—now or never—for the window of opportunity is usually small. Ultimately, you have to trust your instinct: you walk away, not prepared to risk your hard-earned investment; or, you close your eyes feeling this is the deal to persist with, and take a gamble.Continue reading

Private Money Lending – Some Situations Where It’s the Best Option

Private Money Lending – Some Situations Where It’s the Best Option

Private money lending is a great alternative to conventional bank lending. It is based on mutual understanding, where both parties look for ways to make the deal beneficial for both sides. Private money lending can be obtained from personal contacts or from professional commercial lending organizations. Due to its nature, it is really popular in real-estate circles.Continue reading

Projects That Require Bridge Loans

Projects That Require Bridge Loans

Sometimes, you need extra money right away if you’re going to complete a project on time. If you find yourself in a situation like this, you may want to consider getting a bridge loan. Bridge financing is a loan with a very short term of repayment. Many bridge loans are taken out for as little as 2 weeks. The loans are designed to hold people over until they can secure permanent financing. As an example, if you need to pay contractors in order to get a project started, you could get a bridge loan so that work could begin right away. Later on, when your financing came in, you could repay the lender and rely on the money that you currently have. If you’re interested in getting a bridge loan, here are a few things you should keep in mind: 1. Be Aware Of What The Repayment Terms Are Bridge loans don’t operate the same way that other kinds of loans do. If you apply for a loan like this, you should make sure you have a strong understanding of what the repayment terms will be. The more you know about the repayment terms, the easier it will be for you to get that loan paid off in a timely manner. Make sure that you’ll be able to repay the loan that you are applying for without any kind of issue. 2. Have A Financing Plan In Place If you’re applying for a bridge loan, you need to make sure you already know how you are going to get the financing you need. Whether you are waiting for a bank loan to go through, or whether you are trying to find investors, you need to know how you are going to get the financing you need. Bridge loans tend to be a lot more expensive than a standard loan, so you’ll need to make sure you can repay this loan as soon as you can. If you’re not sure you’ll be able to get another source of financing, a bridge loan might be a bad idea. 3. Bridge Loans Are Great In The Right Situation While bridge loans are risky, they can also be extremely beneficial. They are particularly valuable for people who specialize in real estate ventures, like flipping homes. Someone can use a bridge loan to close on a property quickly, then pay off their bridge loan when another properly sells. From there, the loan can be refinanced under more normal terms. As long as people are aware of the risks going on, bridge loans can be extremely beneficial. They allow people to get the money they need when they need it. Projects won’t have to be put on hold; things can move forward right away. Take a look at all of your options and decide if a bridge loan is a good fit for your project. If you need to act fast and don’t have time to find financing, it might be ideal for you.Continue reading

Residential Bridge Financing Services Explained

Residential Bridge Financing Services Explained

  A bridge loan is a temporary or short-term loan that is used by a borrower to finance the purchase of a new property until their current property is sold. In this article, you will find bridge financing services explained. Bridge loans are also called gap financing, swing loans, and interim financing and are usually good for six months, but may be extended up to 12. Bridge loans will usually carry a higher interest rate than the traditional home mortgage, usually higher than the average fixed rate. They can also have high closing costs. If someone is hoping to upgrade to a bigger home or a new home, they may take out a bridge loan to finance the purchase of the new home until their current home sells. Essentially, the bridge loan finances the gap between the time the old home sells and the new home is purchased. Often, when someone makes an offer on a new home, it may be contingent upon the sale of their current home. If their current home does not sell, then the buyer or seller may get out of the contract. If a seller will not accept a contingency contract, then bridge financing may be a good option. It may cost the buyer a little more, but it can make the difference in a housing deal. Bridge loans can be structured to completely pay off any existing liens on a house or may be used as a second loan on a property. If the bridge loan is used to pay off all existing liens, the buyer could use any excess funds as a down payment on the new home. If the bridge loan is used as a second mortgage, it will typically be used only as a down payment on the new home. Under the first option, the buyer will usually not make any monthly payments on the loan. Instead, you will pay mortgage payments on the new home. Once your old house sells, the proceeds from that sale will pay off the bridge loan. If you choose to take a bridge loan as a second mortgage, you will need to make mortgage payments on both loans. This can make it difficult to make all your payments on time. If you plan on using a bridge loan as a down payment, be sure you can make both mortgage payments, at least for up to a year. It can be risky to enter into a bridge loan. The borrower is essentially taking on a new loan and a higher interest rate with no guarantee that their current property will sell before the bridge loan expires. Most of the time, a homeowner will not need to pay interest on the bridge loan until they pay it off. For most residential deals, it is not necessary to get a bridge loan. This is because most residential property sells before the owner closes on their new home. In this article, you found bridge financing services explained. Consider all…Continue reading

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