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A
bridge loan is a short-term loan that is intended
to "bridge" a gap between a current
need for capital and the time required to
set up a more permanent financing solution.
While this type of loan tends to carry certain
fees and a higher interest rate, it is not
intended as a long-term solution. Used properly,
a bridge loan can help a business to participate
in a lucrative transaction that might be lost
otherwise. While there is a real cost to be
addresses and managed, this option should
be considered under the right circumstances.
A
Commercial bridge loan is in most respects
is related to the funding of cash in a short
period of time for a short amount of time
until a permanent method of financing is obtained.
Typically, little verification of personal
income or assets are made and credit scores
are only used as a general guide as to the
rate and term of the loan. Starting
at 10.99%. Cost is negotiable, depending on
risk. LTV or cash flow is what drives
the interest of this program more than anything.
Commercial
bridge loans are great tools used by many
business professionals to provide quick
solutions to a timely acquisition or
business opportunity. When "time
is of the essence" they allow a purchaser
or investor to act quickly. These loans are
typically used for acquisition, cash out,
partner buy-outs, foreclosure prevention,
and construction purposes.
We
will lend on the "as is" value of
the real estate equity involved in the project.
Appraisal and/or the cash flow of the property
is what we use to determine feasibility.
If you are interested in obtaining a loan
based upon the future value of the project,
bridge financing may not be your solution.
We do have other programs that might fit your
goals.
A
bridge loan will do away with much of the
time consuming verification that a bank may
require to lend on the very same project.
Bridge
Loan may be useful in the following property
types:
Acquisition
and Development land loans
Purchase
money private loans
Commercial
building lots
Income
Producing Commercial
Commercial "for lease"
Construction
Office
Complexes
Office
buildings
Mobile Home Parks
Hotel
- Motel
RV
Parks
Mixed
Use
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