A bridge loan, sometimes called a cross-collateralization, is a short-term loan that gets real estate investors from point A to point B by freeing up the equity in a property they already own. It’s the ideal option if your cash is tied up in other real estate investments and you need approval within a few short days.
To learn more about hard money bridge loans in DC, MD, and VA, contact us today!
When to Take Out a Bridge Loan
There are many circumstances in which it makes sense to obtain a hard money bridge loan. Here are some examples:
- A homeowner wants to sell his investment home, but it requires numerous repairs before he can list it. A bridge loan gives him the short-term funding he needs to make the improvements so he can sell the property for top dollar.
- A real estate investor has multiple projects and is awaiting the sale of one property so he can move on to the next one. A bridge loan provides him with the funds he needs to keep moving forward, and he can pay off the loan as soon as that sale goes through.
- An investor wants to purchase a property, but she must do so quickly because the price point is just right and the competition is high. Because banks require copious documentation, it can take over 45 days to receive loan approval. A bridge loan gives the investor the hard money she needs to close faster.
- An experienced rehabber is looking to purchase another property to flip. However, all his funds are tied up in other real estate deals. In fact, he is running so low, he can not even make a minimum contribution to qualify for a hard money loan. A bridge loan allows him to tap into the equity in his existing real estate portfolio.
- A novice investor has significant equity in her primary residence. She is excited about real estate investing opportunities but does not have much actual cash to start with. Our hard money loans can help her get a head start by tapping equity in her home.
How Do Bridge Loans Work?
To qualify for a bridge loan with us, you must have at least one property — whether it’s your primary residence or your investment property — with a significant equity in it. With some rare exceptions, the funds you receive must be used exclusively for the renovation of that home or for a purchase and rehab of another investment property. If you are using that bridge loan for another fix-and-flip, the loan will be secured by both properties: a property that you already own and a new property that you are buying. This process is often referred to as cross-collateralization.
Why Work with New Funding Resources?
Our bridge loans are just another way to help you make money in real estate. We have a unique expertise in helping you leverage your existing real estate equity to expand your real estate portfolio. Our cross-collateralization program is uniquely designed to help you keep your costs low by avoiding separate closings and multiple lien releases. We can even roll your monthly payments into your loan, so you can keep your undivided attention on completing your rehab as fast as possible.
Contact New Funding Resources for Bridge Loans in MD, DC & VA
To learn more about our hard money loan bridge loans, contact the professionals at New Funding Resources today.