Commercial real estate investors have a wide range of needs. From property acquisitions to renovation, construction, keeping large projects on track, taking advantage of time-sensitive opportunities, and more. Investors need a versatile funding solution that can handle a variety of needs combined with scalability and flexibility. While traditional loans typically fall into the “one size fits none” category, bridge loans offer a robust alternative.
The Major Advantages of Using Bridge Loans
To understand the advantages of bridge loans, we need to dive into how they are structured. Instead of relying solely on credit ratings or the financials of commercial real estate investors, bridge loans are structured around the value of the property involved in the project or transaction. This allows commercial real estate investors to use bridge loans for everything from fix and flip projects to raw land development, and everything in between. Since the land or project itself is used to secure financing, bridge loans can be arranged quickly and the funds can be made available in short order.
How to Use Bridge Loans
There are a few common situations in which bridge loans can be very useful. First, if a commercial real estate investor has a property lined up, and larger financing is still being processed, a bridge loan can come in very handy when covering immediate costs. Second, on a fix and flip or construction project, a bridge loan can help investors pay for permits, materials, contractors and more while larger loans are in the pipeline. Third, if a time-sensitive opportunity presents itself, a bridge loan can help because they can be arranged in a much short time than it would take to process a traditional loan. Fourth, commercial real estate investors can use bridge loans for short-term financing between projects to prevent capital from becoming too tight.
Get the Financing You Need
At Golden Century Lending, we provide bridge loans to commercial real estate investors nationwide. Contact our team today and discuss your upcoming and current projects so we can structure a fast and efficient solution to help your reach your goals.