If you are a business owner looking to obtain commercial real estate, then you may need to act quickly when you come across a desirable property. Of course, these opportunities can fall through if you do not have the necessary funds immediately available. A commercial bridge loan can help you navigate the transition between purchasing new properties and selling old ones.
How Commercial Bridge Loans Work
With commercial bridge loans, borrowers obtain new properties by borrowing against the equity of properties they already own. After securing the purchase of the new properties, they sell the old ones and use the funds from the sale to pay off the bridge loans.
Unlike traditional lenders, commercial bridge loan lenders can approve applications and distribute funds in under a week. They can also offer loan terms from one to 11 months. Commercial bridge loans have higher interest rates than traditional loans, but the impact of these higher rates is often diminished by the easy acquisition and short terms of the loans.
Why You Need a Commercial Bridge Loan
Your business does not have to stagnate just because you do not currently have a large cash flow. If you have strong equity in your current property, then you can use this equity to fund the down payment on your new property. Commercial bridge loans also allow you to borrow against properties that are already on the market, enabling you to pay the balance of your loan in a matter of months. A bridge loan can help you make positive strides for your business without losing time scraping together a down payment.
Lenders You Can Trust
If you have realized that a commercial bridge loan or a hard money loan is right for you, then you need to act fast. Choosing a lender with a solid reputation can help expedite and improve the loan approval process. North Coast Financial has over 36 years of experience in the industry and a long history of satisfied customers. For more information, give them a call or visit their website.