When you venture into real estate, it becomes immediately clear that you’ll need access to both long-term loans and the short-term variant. Acquiring property in the first place is a considerable investment that requires large sums of capital; long-term loans are best-suited for this. On the other hand, short-term loans known as bridge loans can serve to expand the reach of your real estate portfolio.
Bridge Loans Are Also Called Credit Lines
More specifically, they are known as acquisition credit lines. One of the primary benefits of having access to one is the ability to fund purchases for your real estate portfolio. Even if you’ve got plenty of hard cash, you will almost certainly run into issues with cash flow given the time it takes to become profitable with the new property. In particular, you will appreciate the flexibility of bridge loans, as well as the ability they have to make many times the amount of cash available to you.
Fast Turn-Around Time
It’s a reality of business that excellent opportunities will come around even as the bulk of your resources are tied up presently. Bridge loans ensure that you needn’t miss out on an especially rare chance to super-charge your real estate portfolio – particularly with the superior turn-around times when compared to traditional loans. You can have the money you need in mere days, instead of the months required for federal loans or the weeks required for bank loans.
Perhaps not surprisingly, bridge loans are highly regarded for their adaptability and flexibility – the interest rates can be negotiated; unlike in the case of bank loans. The latter is dependent almost entirely on your creditworthiness, as judged by your credit history and length of time in business. The flexibility means that you needn’t depend on immediate profitability to secure the loan in the first place; furthermore, the terms are easier to change depending on economic forces in the real estate industry.
Contact Lionheart Commercial Capital today to get the bridge financing you need.