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November 14, 2013

5 Advantages of Bridge Loans for Investors

Bridge financing, as the name suggests, serves as a “bridge” to another transaction. In our case, these loans have assisted real estate projects and have also allowed borrowers to pay off loans or take advantage of new opportunities quickly.

Bridge loan financing is a smart alternative for borrowers when traditional lenders are moving too slow or are too rigid. Hard money lenders, like AgAmerica Lending, offer speed, a professional service, and convenient short-term financing, helping investors to take advantage of great opportunities that do not fit easily into the tight structure of institutional lending. Regardless of if you’re a seasoned borrower or a newbie, AgAmerica is here to assist you.

Through our Transitional Lending program we offer these non-conventional asset-based loans, often called hard money loans, which are based on collateral and can be beneficial for a variety of purposes.

5 Advantages of Bridge Loans:

  1. You do not miss out on an opportunity when a traditional lender (i.e. a bank) cannot close the deal in a timely fashion. Bridge loans are fast. When time is of the essence, AgAmerica Lending’s bridge loan can make all the difference in securing an opportunity.
  2. The bridge loan holds you over until the property is sold. If you need to sell your investment property now, but know it may take a few months on the market to sell, a bridge loan is a great option.
  3. You can buy out an investment partner. Paying off a partner who is no longer interested in the real estate investment/partnership can have long-term benefits.
  4. Flexible payback may be an option. Proving adequate income to repay the debt is one of the requirements a borrower must meet. However, there is an option of utilizing an interest reserve if there is sufficient equity in the property to grant a larger loan.
  5. There are no concrete specifications for a bridge loan, as there are for conventional loan types. The bridge loan is provided by the lending company based on their own judgment and if it makes sense.

With our simple and competitive bridge loans, you have the advantage to respond quickly to business opportunities. Contact AgAmerica Lending for more information regarding Florida hard money loans and our Transitional Lending Program.

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