Bridge loan - Real estate - How Do They Works? ( Simple Quick Loan)

Bridge loan - Real estate - How Do They Works? ( Simple Quick Loan)

Real estate

Bridge loans in many cases are used for commercial property purchases to quickly
close on the property, retrieve real property from foreclosure, or consider
advantage of a short-term opportunity to be able to secure long-term
financing. Bridge loans on the property are typically repaid when the
property comes, refinanced with a conventional lender, the borrower's
creditworthiness enhances, the property is enhanced or completed, or presently there
is a specific improvement or change which allows a permanent or following
round of mortgage financing to happen. The timing issue might arise from
project phases with various cash needs and risk profiles around
ability to secure financing.

A bridge loan is comparable to and overlaps with a tough money loan. Both tend to be
non-standard loans obtained because of short-term, or unusual, conditions.
The difference is that hard money describes the lending source, generally an
individual, investment swimming pool, or private company that isn't a bank in the actual
business of making high-risk, high interest loans, while a bridge loan is actually
a short term mortgage that "bridges the gap" between long run loans.