The homeowners source for private money loans.

How to obtain a bridge loan from a private money lender.

Short term loans to acquire or leverage a property temporarily are referred to as “bridge loans”. A bridge loan's terms could range anywhere from a few days to a few years, depending on the needs of the borrower. The are used for both commercial real estate and residential real estate to enable a quick closing, allowing a borrower to take advantage of an opportunity, then arrange for more permanent financing at a later date.

The amount of time that it takes to arrange this financing is often of paramount importance in bridge loans. Usually one of two scenarios in is play. The borrower has found a tremendous opportunity for the the purchase a property or business, but the transaction must close quickly. Another scenario might involve a borrower trying to stave off an immediate problem, such as restructuring debt or avoiding bankruptcy.

Bridge loans are made based upon the value of the real estate to be collateralized. These loans can close with very little paperwork in as little as 10 days to two weeks. As the primary focus will be on the collateralized property, you’ll need to assemble a complete property package. This would include a recent rent roll and appraisal, photos of the property and surrounding area, and a brief synopsis of you plans on how you intend to retire the loan. There is generally little review of your credit, business activities, residences, etc., this type of loan is focused on the project as it stands today.

One of the quickest paths to success in obtaining a bridge loans is to work with a direct lending source, rather than a broker. Most lenders who represent themselves as making bridge loans (hard money or otherwise) are actually brokers. Being specific about your needs and whether the direct lender is actually responsible for the making the lending decision can save you an enormous amount of time and money. Given the “need for speed” that is involved in a bridge loan, it is time and money that you cannot afford to lose. If you are in need of these types of loans as a regular course of business, finding a direct private money mortgage lender will be worth the effort.
 

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