NO! It’s not money to buy a bridge!
Bridge loans are short-term loans used to provide immediate financing until a more permanent funding option is available.
They are often used in real estate transactions to quickly secure funding while waiting for long-term financing, or in business to cover temporary cash flow needs.
These loans typically have higher interest rates and are meant to be repaid within a few months to a year.
Purpose: To provide immediate funds for purchasing an investment property, especially in competitive markets, or for renovations to increase property value.
Loan Terms: Typically, bridge loans for investment properties are short-term (6 months to 2 years) with higher interest rates compared to traditional financing.
Collateral: The investment property itself serves as collateral for the loan.
Repayment: The loan is usually repaid through the proceeds of selling the property, refinancing into a long-term mortgage, or refinancing with another lender.
Qualification: Lenders consider factors like the property’s potential value, exit strategy, investor experience, and existing financials.
Use Cases: Buying a distressed property, quick acquisitions in competitive markets, or temporary funding while securing long-term financing.
Bridge loans enable investors to act quickly and leverage opportunities that might not be possible with traditional financing, but they require careful planning for repayment.
