Why is bridge financing valuable in the commercial real estate market?īridge loans serve to bridge the gap between a borrowers’ short-term capital needs and longer term financing. The advantage of bridge loans, aside from their flexibility, is that they allow the borrower the comfort of access to capital- allowing them to focus on other aspects of the project. They may need to rush to close a deal, pull the property out of foreclosure, take advantage of obscure business opportunities, satisfy working capital needs, or they may even have trouble qualifying for a traditional institutional loan. Why would a borrower obtain a bridge loan?īorrowers-including experienced real estate developers and opportunistic investors-seek bridge loans for a variety of reasons. Further, bridge lenders are primarily focused on the value of the underlying collateral, rather than the creditworthiness of the borrower requesting the loan. Alternatively, a traditional lender, such as a bank, may require up to 90 or more days to fund.įocus on collateral. These loans can usually be made available to borrowers within less than 30 days, due to the flexibility of structuring and reduced due diligence requirements. The higher costs attributed to bridge loans are partially offset, however, by the speed in which bridge lenders are able to provide the loan. As bridge lenders take on additional risks when underwriting loans-including liquidity risk, default risk and limited access to information-bridge loans typically have higher interests rates when compared to the typical mortgage. In addition, negative amortization and zero-coupon notes may be an option. Typically the entire principal is due at maturity. Bridge loans tend to be interest-only loans, with little to no principal amortization. These short-term loans are used until the borrower can obtain institutional refinancing or liquidate the property, thereby “bridging” their financing gap.Īmortization.

While a traditional mortgage tends to be longer term, typical bridge loan terms do not exceed two years. Often referred to as hard money loans, these loans differ from a traditional mortgage in several ways, including:ĭuration. to a sales associate or executive before meeting with an important client (or potential client) in order to help make that essential great first impressionĪnyone receiving a Soho Leather Business Portfolio will know that you're making the extra effort to give them something truly special, so order yours today.What is a bridge loan? What differentiates it from a traditional mortgage?īridge loans are short-term loans often used as interim financing until a longer term solution becomes available to borrowers.as a stylish alternative to a simple envelope when passing on contract and project details to a new client.to your co-workers at the next company-wide meeting, so they'll have something for taking notes.The Soho Leather Business Portfolio is a great gift to hand out Your business logo will be pressed into the front, promoting your business wherever this beautiful accessory is taken. This portfolio includes three inner pockets and a ruled 8.5'x11' writing pad. The Soho Leather Business Portfolio from Quality Logo Products ® is made from glazed cowhide leather and accented with a calfskin spine.

Soho notes coupon