Bridge loans, very similar to a Hard Money loan, is a financing option that serves as a source of funding until you get permanent financing in place or repay the debt. Bridge loans are typically shorter in term, lasting 3-18 months on average.

Bridge loans offer a unique opportunity to acquire assets, often distressed or outdated properties, and provide you with the financial ‘bridge’ necessary to transform them from neglected structures into attractive, competitive real estate assets.

These loans not only cover the property purchase but can also include the essential funds required for its revitalization. This loan type acts as a “bridge” between the two sales.

Typically structured as interest-only loans with a principal balloon payment due at the end, bridge loans offer the flexibility to refinance or sell the property without incurring prepayment penalties.

Bridge loans are a great short term financing option but before you decide which type of loan is best for you it’s beneficial to discuss your options with a pro. There are many factors that go into financing and we are here to guide you through this process. There is never a cost or obligation for a quote!