Five Advantages of Bridge Loans for Rural Landowners

Learn more about how bridge loans can be used to seize opportunity and expand your land holdings.

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 their requirements are too rigid. Hard money lenders, like AgAmerica Lending, offer an alternative financing solution that provides speed, professional service, and convenient short-term financing. Through our range of land financing options, we’re able to provide rural landowners with both conventional and alternative financing options that enable them to take advantage of opportunity quickly while also having a long-term game plan in mind.

Whether you’re a seasoned landowner or an aspiring one, AgAmerica is here to assist you through every step of the way.

Through our transitional lending program we offer nonconventional 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 can be 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 of responding quickly to business opportunities. Contact AgAmerica Lending for more information regarding hard money loans for agricultural land and our Transitional Lending Program.