John, a real estate investor, wishes to purchase an office building for a million dollars plus spend another million dollars to renovate it. He believes the building will be worth approximately $2.5 million after the renovation. John doesn’t have the $2 million it will take to make this happen right away and he doesn’t want to miss out on this incredible opportunity.
The clear solution is a bridge loan.
Bridge loans, also known as gap financing, swing financing, or hard money loans, tides you over financially during the gap in time between the purchase of a property and arranging its long-term financing. As the name implies, they serve to bridge the financial gap between current and future circumstances. A bridge loan can essentially allow you to buy a property quickly and without a contingency.
Using a bridge loan for speed to purchase a newly available property before the competition can get it is the most common example, but here are other situations:
In general, bridge loans are granted based upon the value of the property that serves as collateral rather than on the credit score of the borrower. Focus Capital has over 50 years of experience in commercial loans, with bridge loans being the most utilized. We deliver lending solutions that are quick, transparent and personalized in determining the best solution to get you the funding you need.
The clear solution is a bridge loan.
Bridge loans, also known as gap financing, swing financing, or hard money loans, tides you over financially during the gap in time between the purchase of a property and arranging its long-term financing. As the name implies, they serve to bridge the financial gap between current and future circumstances. A bridge loan can essentially allow you to buy a property quickly and without a contingency.
Using a bridge loan for speed to purchase a newly available property before the competition can get it is the most common example, but here are other situations:
Focus Capital Terms for Bridge Financing | |
Loan Amount | $1 million – $100 million |
Interest Rates | Starting at 5.25% |
Loan Terms | Up to 36 months |
Loan-to-Value Ratio | Up to 80% |