… Bridge Loans Available For …
- Property Acquisition including quick closings
- Mortgage Refinancing
- Equity Take Out
- Second Mortgage Financing
- Debt Consolidation
- Land Development
- Construction Financing
- Construction Budget Shortfalls
- Working Capital
- Kid's Condo or House Deposits
- Non Resident Equity Take outs
- Purchase New Home Before Current Home Is Sold
- Many, many other applications.
The term bridge financing relates to getting capital in the form of a loan for a specific purpose and a specific length of time.
Bridge loans are most common in real estate transactions where the timing of the close requires a certain amount of cash by a certain date.
The amount of cash the transaction is short from equity is covered off by a bridge loan.
The loan is called a bridge in that it will be repaid in a very specific period of time from a known future event.
One of the more common examples is when a real estate transaction needs to close by a certain date and the borrower is not able to complete the process of getting their ideal financing in place from a bank or institutional lender. In these situations, a private bridge loan could be used to close the transaction on time and when the preferred form of financing becomes available, the bridge mortgage would be paid out.
Another example would be a construction loan that provides capital for building purposes and will be paid out in a number of months through a long term take out mortgage.
As you can see, the above examples demonstrate the need for a specific amount of capital in the form of a loan that will be repaid by a specific and known future event. The added twist here is that the short term bridge loan is secured by real estate.
This is a large part of what we do … placing bridge financing solutions for our clients in Ontario.
While all the bridge loans we place are backed by real estate, the actual transactions that are being funded may or may not be real estate based.
For instance, a business could have a transaction to close that requires the delivery of goods and services and requires incremental working capital to complete the order.
If the business owner has equity in a residential or commercial property, then there exists the potential to raise the capital required by leveraging the available equity.
Real estate backed bridge financing is very popular due to the potential speed with which the transaction can be completed.
There are other forms of bridge financing available, but virtually all of them have a longer due diligence and loan administration process.
With a property backed bridge loan, capital can be secured and funded in two to five business days provided everything required by the lender is in order.
Bridge financing can be provided through private lenders and institutional lenders. The choice as to which one to use will depend on 1) what you can qualify for, and 2) the the time you have to work with.
There are three key elements to getting this type of financing in place quickly.
First, you need to have a property with equity to leverage.
Second, there needs to be a clear exit strategy for repaying the bridge lender’s advance.
Third, you need to be working with the right team of professionals. The right team includes a mortgage broker, private lender, and lawyer that regularly work together with respect to placing these types of deals.
Most private lenders and/or their lawyers are not set up for the fast close, so you need to focus in on the ones that are and the best way to do that is to work with an experienced mortgage broker who has successfully facilitated the placement of bridge loans in your area.
Joe helped us out with our financing and all the questions we asked. The rates and service was excellent and he even came to our house to sign all the papers.
We have recommend him to our co-workers, friends and family.
Mortgage Needed In a Hurry!
We needed to arrange something quickly and Joe Walsh was able to provide us with a commitment on the same day;
I would definitely recommend Joe.
A Satisfied Customer!
If you have a bridge financing request, I suggest that you give me a call so we can quickly go over your requirements and immediately provide relevant funding options for your immediate consideration.