{"id":4970,"date":"2008-09-16T15:19:52","date_gmt":"2008-09-16T20:19:52","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/09\/16\/get-immediate-financing-with-a-bridge-loan\/"},"modified":"2008-09-16T15:19:52","modified_gmt":"2008-09-16T20:19:52","slug":"get-immediate-financing-with-a-bridge-loan","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=4970","title":{"rendered":"Get Immediate Financing With A Bridge Loan"},"content":{"rendered":"
by Stephan Gibson<\/div>\n

Financing and cash flow issues tend to have hard deadlines. What happens when a gap occurs between when current financing ends and new financing begins? For many individuals and businesses, the answer is found in bridge loans. <\/p>\n

To make things as complicated as possible, the financial industry uses terms no person in their right mind would. Bridge loans are one area where this is not the case. The bridge loan does just that. It bridges a period of time with financing. <\/p>\n

We can look at a simple example in real estate<\/a> to see how these loans work. Assume I sell my home and escrow closes on the June 15th. Now assume I buy a home and escrow closes on that purchase on June 7th. <\/p>\n

I am in it deep. I am going to come up a week short on money. How do I fill this 7 day gap in my financing? The bridge loan is the answer. The loan will allow me to buy the new home with the money I get from my sale being used to pay it off. <\/p>\n

Bridge loans are used more often in commercial real estate. They are often called opportunity loans. A business may see a unique opportunity to buy a property, but cannot wait for traditional financing.<\/p>\n

Traditional mortgages are cash machines because people will pay interest for 30 years without batting an eye. Bridge loans are profitable, but not in this way since there simply is not enough time to pull in enough on interest to justify the risk. <\/p>\n

To make a profit, lenders take a two pronged approach. First and foremost, they are going to charge big points on the loan. You can expect 3 to 5 points at a minimum. The lender will also crank the interest rate up to double the going rate. <\/p>\n

The costs associated with a bridge loan are the obvious disadvantage, but they have their purpose. Processing is done very quickly and with little documentation. When you need immediate financing, these loans are just about your only option. <\/p>\n

At this point, you might think bridge loans are thrown around without little thought. You would be right with one exception. While you might get money quick, you usually will get no more than sixty five percent of loan to value.<\/p>\n

Is a bridge loan good for every situation? No, of course not. That being said, it can be a real savior when you need to buy time and a traditional bank just will not touch you.<\/p>\n

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About the Author:<\/div>\n
Find more free commercial loan information<\/a> at CommercialLoanStop.com.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Financing and cash flow issues tend to have hard deadlines. What happens when a gap occurs between when current financing ends and new financing begins? For many individuals and businesses, the answer is found in bridge loans.<\/p>\n","protected":false},"author":1875,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-4970","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1875"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4970"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4970\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}