Bridge loans are often confused with hard money loans and some of the confusion is understandable in that they share commonalities. Bridge loans are typically shorter term loans and are typically due within 1 to 2 years whereas hard money loans allow up 5 years before they are due. Both carry higher interest rates than conventional loans and neither hard money nor bridge loans are to be considered permanent loans.
Bridge loan lenders can help free up cash for a property owner to compensate for vacancy on leased property, complete tenant improvements or money to invest in other investment properties. Bridge loans usually require a higher FICO score than a hard money loan and a bridge loan will take about 3 weeks to close compared to a hard money loan that typically takes 10-15 days to close.
A good bridge loan is a great tool for real estate investors who at any point in time need to free up liquid cash to grow their portfolio or to deal with untimely emergencies. A tenant moves out and leaves the property a mess, an unexpected repair on one of your investment properties, an unexpected tax lien or tenants that won't pay and won’t move out.
Give us a call to go over the many options you have to free up cash with a bridge loan to deal with any issues that may arise as a real estate investor.
3700 N Eagle Rock Blvd. Suite B, Los Angeles, California 90065, United States
Monday - Friday: 9am - 6pm
Saturday: By appointment