Questions for Residential Real Estate Investors.

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Questions for Residential Real Estate Investors.

Cris Hernandez
Real Estate Agent · Danville, CA · Member since 2020 · 1 post · 0 votes

Hello, 

 I'm looking for insight on Bridge Loans. I understand the pros/cons, but is it a good risk tool or something to avoid for investment properties?

We don’t want to use up our available cash flow and unfortunately our area requires 20% down for any investment property.

I would be looking to refi into a conventional load in about six to eight months after the purchase. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Cris Hernandez:

    Hello, 

     I'm looking for insight on Bridge Loans. I understand the pros/cons, but is it a good risk tool or something to avoid for investment properties?

    We don’t want to use up our available cash flow and unfortunately our area requires 20% down for any investment property.

    I would be looking to refi into a conventional load in about six to eight months after the purchase. 


     If you are renovating a property or already own a property and need short term financing - they are a great tool. What is the specific situation? It seems like you already own the proeprty since it is cash flowing? Depending on the down payment it will have an impact on the rate, typically you will need to have 20-25% down payment for bridge loans though, some may go higher but the rate also increases substantially the more leverage you have.

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