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 conventional bank financing and with a fraction of the paperwork. A popular form of asset-based lending is a bridge loan, which enable investors to diversify their asset portfolios to optimize returns. The lending experts at Express Capital Financing have been assisting successful investors and business owners obtain the money they need to prosper for decades and have drawn on this immense experience to provide the following overview of bridge loans to help you determine if it is the right solution for your next project.
Understanding Bridge Loans
Bridge loans are extended for a compressed window of time as compared to typical term loans or conventional mortgages, usually ranging from between one to two years. Investors prefer the flexibility and absence of burdensome paperwork associated with obtaining a bridge loan. These loans can often be extended for additional short periods—which is a tremendous advantage for investors handling construction or renovation projects where there are often unexpected delays that require adaptive funding solutions.
The majority of traditional lending entities do not offer bridge loan products for borrowers. However, this type of transitional loan is ideal for common investment industry scenarios such as when an investor wants to quickly submit an offer on a property while they are also still waiting for their previous rehabbed fix-and-flip project to be resold. The good news is that private money lenders like Express Capital Financial specialize in structuring intuitive bridge loan funding solutions for a wide variety of 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 financing plan offers investors is the speed in which the underwriting phase can be completed. In today’s ultra-competitive real estate marketplace, 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 that have not yet established consistent passive income streams or for self-employed investors, bridge loans are an ideal funding option. 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 credit scores or salary thresholds. Put simply, if it is a good deal, we are committed to making it happen and will work with investors to develop effective, individually tailored financing plans that address their specific needs.
Another plus associated with bridge loans is that investors can use the capital for a wide range of uses beyond just the initial acquisition of the property asset. 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. And when you choose to partner with Express Capital Financing, you have the autonomy to pay off your loan 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.
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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!