Bridge Loans For Real Estate Investors

Within the private financing sector, savvy real estate investors leverage capital sourced from asset-based loans to effectively grow and scale their business operations. Asset-based mortgages are secured by the underlying property, allowing lenders to close more expediently than traditional loans and with a fraction of the paperwork. A popular form of asset-based lending is a bridge loan, which enables investors to diversify their real estate portfolios to optimize returns. The lending experts at Express Capital Financing have been assisting successful investors, property developers and business owners in obtaining the money they need to prosper for decades and have drawn on this immense experience to provide the following overview of bridge financing to help you determine if it is the right solution for your next real estate project.

What is a Bridge Loan?

Bridge loans are extended for a compressed time window compared to longer-term financing or conventional loans, usually ranging from one to two years. Investors prefer the flexibility and absence of burdensome paperwork associated with obtaining bridge financing. These short-term loans can often be extended for additional periods which is a tremendous advantage for property developers handling construction or renovation projects where there are often unexpected delays that require extra time.

The majority of traditional lenders do not offer bridge loan products for borrowers. However, this type of gap financing is ideal for real estate industry scenarios such as when an investor wants to quickly make a real estate purchase while they are also still waiting for their current buy to let property to be resold. The good news is that private money lenders like Express Capital Financing specialize in providing modern bridging loans for a wide variety of real estate projects.

Key Advantages of Bridge Loans

Bridge loans provide a wide range of advantages. Perhaps the most well-known and significant competitive edge this type of interim financing plan offers investors is the speed in which the underwriting phase of the application process can be completed. In the ultra-competitive current market, any form of delay when it comes to funding can be all the difference between losing out on a profitable investment property and successfully acquiring it. The ability to quickly submit offers with the requisite liquidity to back it up gives investors an enviable leg up over the competition, allowing them to lock-in deals much easier.

For real estate professionals who have not yet established permanent financing or for self-employed investors, modern bridging loans are an ideal funding option compared to longer-term financing. Express Capital Financing conducts a comprehensive, common-sense approach to its underwriting process, basing our funding determination primarily on the long-term viability of the proposed transaction as opposed to strong credit history or salary thresholds. Put simply, if it is a good deal, we are committed to making it happen and will work with investors and private companies to develop effective, individually tailored financing plans that address their specific needs.

Another plus associated with this type of asset-based lending is that investors can use the capital for a wide range of uses beyond just the initial acquisition of the property itself. Whether you need additional working capital to maintain business operations between deals or cover vital business expenses, bridge loans provide investors and business entities alike with the necessary amount of liquidity to be successful in the real estate market. And when you choose to partner with Express Capital Financing, you have the autonomy to pay off your current loan balance before the maturation date without incurring any sort of adverse penalties or fees like you would with conventional bank mortgages, so you can quickly move on to your next income-generating endeavor.

Get Started Today

Ready to expedite the growth of your investment business with efficient, affordable bridge loan funding products? Express Capital Financing is here to help. Contact us today to learn more about how we can assist you in reaching all of your investing goals!