What are Hard Money Bridge Loans?
We all know what a bridge is for; connecting two areas so that one can get to their other side without difficulty. Bridge loans function in a similar way as physical bridges do. You are in a situation where you want to purchase real estate property where the owner is in a hurry to sell. You can only purchase that property if you have quick cash which you can get from a bridge loan, or money that can bridge that need. The bridge loan then is the means by which you can get to the other side - to purchase the property.
As much as it is possible, we use bridges to get to the other side fast. Knowing where you are going and deciding on you exit strategy is definite when one uses a bridge. It just illustrates that hard money financing is the bridge between you and the property you wish to purchase.
The ideal situation to understand this scenarios is that you are looking at a very good property that is getting foreclosed and the owner needs quick cash. You are willing to buy the property but you need financing. It will take around two or three months to get money from a bank loan or traditional lender application and besides, there are still many documents that you need to submit. Losing this deal is very possible in that long period of time because the owner needs quick cash. So the best option for you is to get the hard money Bridge Loans because the loan is short terms and can be acquired within a few days. You need to have an exit strategy when you would be able to return the loan. Getting hard money also needs a good equity position or good collateral.
What is great about bridge loans is that nothing affects the loan, not a poor credit history, nor losing a current job. The only requirement is to have good equity. When independent evaluators are able to give a good reports about you to the bridge lenders, then they will immediately release the funds to you. These bridge loans are good for a maximum of six months. To learn more about hard money loans, visit https://en.wikipedia.org/wiki/Hard_money_loan.
You need to understand that hard money is equity driven and they lend based upon the property and nothing else. So if you have a clear cut exit strategy and need short term financing, then hard money bridge loans is for you. You don't want to lose of your deal with bank loans and traditional lender loans which takes very long to process and release. Please check out https://www.pconsultingdfw.com if you have questions.