If you think that you are in need of a bridge loan, then you need to consult with a bridge lender. A bridge loan is a short-term loan that is designated for real estate purposes and is taken out for a short period of time. This short time period can range anywhere from six months to three years. It is called a bridge loan because it is designed to 'bridge' the gap while you are waiting for financing from either a bank, investors, or anywhere else that you may be receiving financing from.
If you are trying to get a commercial real estate loan, then your loan may range anywhere from five years to 30 years! These types of loans are generally taken out through banks or insurance companies and are longer term loans. If you come across a piece of commercial real estate that you want to buy but are still waiting on your loan or financing to come in, then you can take out a bridge loan in order to bridge the gap between financing. Bridge loans have high interest rates and are financed by hard money lenders or private capital.
There are many different reasons to use a bridge lender. Listed here are many reasons to take advantage of a bridge loan:
1. If you have found a piece of commercial real estate and must close quickly. This also pertains to close the gap on the waiting period between receiving your longer term loan from a bank. This situation or instance also pertains to losing a bank loan at the last minute but still needing to close the deal on the real estate.
2. If you are about to foreclose on a property, then you can save your property from going into foreclosure by taking out a bridge loan while you obtain other financing such as a bank loan or financing from an investor.
3. If you have found land that you want to buy while you have the chance, then you can get a bridge loan. This will help you close the gap while you are waiting to hear back about a construction loan in order to start building on the land. Construction loan financing can take time so this is a great option if a prime real estate location came up for sale and you need a quick financing option.
4. You can also use a bridge loan as a refinancing option for a property that you are already paying on. This is an option that may work for you if your bank has already refused you the option to refinance your loan through them. This will help you get cash out that you may have tied into the loan and equity of the property.
As you can see, these were just four of the many reasons as to why you may need a bridge loan. If you are interested in meeting with a bridge lender, then contact the trusted and reliable experts at www.montegra.com so that they can answer all of your questions and help you get the short-term financing that you need for your real estate venture.
Getting started with bridge loans or a hard money loan can feel really overwhelming, particularly if you have never take one out before. If you have only ever worked with traditional lenders, such as banks, to take out loans, then the process of taking out a loan through private lending or direct capital lending might feel a bit unnerving. The good news is that when you decide to work with Montegra Capital Resources, they do everything they can to make the process as simple and straightforward as possible. They work with you to ensure that you are getting the kind of loan with the kind of terms that make sense for you, and they do so without the wait and the red tape and inflexibility of taking out a loan through the bank. For people working in the real estate market, especially in a state like Colorado, the ability to make use of these loans can really change how you are able to take advantage of business opportunities in front of you.
The process of working with a bridge lender does not have to be a complex one. Indeed, at Montegra Capital Resources they do all they can to help make sure that you are getting the right loan for you, and they do their best to make the process as clear and as simple as possible. That's why their representatives are so great to work with: they make it easy on you! When you work with a private money lender like Montegra, you're also working directly with the lender rather than having to deal with a third party loan broker. They have direct control over the decisions and the funds, which makes it easy for you to rest assured that you are getting exactly what you are looking for. Here are a few of the steps in the process. Understanding these steps at the outset can help ensure that you are getting the most out of your lending:
The next steps that follow solidify the terms and finalize the process, which is usually completed in under thirty days! Talk about a simple and easy process!