IS A BRIDGE LOAN THE RIGHT FIT FOR YOU?
A bridge loan is a loan that facilitates funding gaps, just like bridges cover physical gaps. Homeowners and real estate investors use it to meet current financial obligations before securing permanent financing. These loans give you access to immediate cash flow when funding is needed but is not yet available.
A bridge loan attracts relatively high-interest rates, and you must back it using some form of collateral, such as a property or business inventory. People mainly use such loans in cases where a borrower expects to sell a property quickly or refinance soon.
Fix and flip loans are short-term, real estate loans designed to help an investor purchase and renovate a property in order to sell it at a profit—generally within 12 to 18 months.
A hard money loan is a type of loan that is secured by real property. Hard money loans are considered loans of "last resort" or short-term bridge loans. These loans are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks.