Bridge Loans
When it comes to securing a bridge loan for a real estate transaction in California, it can be challenging to find a lender who offers flexible terms, quick turnaround times, and reasonable interest rates. This is where Hard Money Lenders California stands out as the premier lender for anyone seeking a bridge loan in the state.
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Hard Money Lenders California is a leading private lending firm that specializes in providing bridge loans to real estate investors, businesses, and individuals in California. With a team of experienced professionals, we have built a reputation for providing fast, flexible, and reliable financing solutions to our clients.
What sets Hard Money Lenders California apart from other lenders is our ability to offer customized loan programs that are tailored to the unique needs of each borrower. Whether a borrower needs a short-term loan to purchase a new property, renovate an existing property, or cover business expenses, Hard Money Lenders California can provide a loan program that meets their specific requirements.
A bridge loan, also known as interim financing, is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing property. It is typically used by individuals or businesses to cover immediate cash flow needs while waiting for a longer-term financing solution to become available.
Contact Hard Money Lenders California anytime, to speak with one of our very helpful and highly knowledgeable loan specialists about your property investment funding in California
Real Estate Types Funded by LA Hard Money Loans
- Apartment Complexes
- Motels and Hotels
- Mixed Use
- Fix and Flip Properties
- Storage Rentals
- Improved Lots
- Warehouses
- Condominiums
- Retail Stores
- Distribution Facilities
- Land Development
- New SFR
- Refinance
- Rehab Loans
- Foreclosures
- Short Sales
- Industrial Properties
- Office Buildings
- Apartments
- Executive Suites
- Single Family Residences
- Duplexes
- Triplexes
- Quadraplexes
What Is A Bridge Loan?
A bridge loan is a short-term loan that is typically secured by the borrower’s existing property. The loan is designed to provide funds that can be used to cover expenses associated with the purchase of a new property or the renovation of an existing property. The loan is typically repaid when the borrower’s existing property is sold, or when a longer-term financing solution becomes available.
How Bridge Loans Work
The loan is typically structured as an interest-only loan, which means that the borrower only pays interest on the loan for the duration of the loan. The loan is typically due within a few months to a year, and the borrower is expected to pay back the loan in full at that time.
One of the most common reasons why someone might need a bridge loan is to purchase a new home before selling an existing one. In this scenario, the borrower might not have enough cash on hand to purchase the new home outright, but they do have equity in their existing home that they can use as collateral for a bridge loan. Bridge loans can also be used by individuals who are going through estate planning. In this scenario, the borrower might need cash on hand to cover the costs associated with settling an estate, but they do not want to sell any assets until the estate is settled.
For California hard money lenders, the focus of loan application evaluation is the property value and down payment in the deal that the borrower is looking to close. With these two priorities, vs. stringent scrutiny of the credit history, lenders have much more flexibility in funding than traditional lenders using more rigid criteria.
A down payment of about 25% to 30% is common in California hard money loans. This rate might seem substantial to new real estate investors who are pricing hard money loan funding for the first time. However, this structuring is fundamental to the investor’s opportunity to acquire a property through a strategy of reducing the traditional requirements.
Cumbersome requisites are what otherwise bog down and so frequently thwart the process of obtaining loan approvals for real estate investment loans through institutional lenders.