Why Private Mortgages Make Great Bridge Loans
“If You Need To Get Financing On a Property Fast, a Private Mortgage May Very Well Be The Answer”
In the world of finance, especially these days, there is a group of words that’s seldom used when speaking about getting commercial financing in place. If you haven’t already guessed it, I’m talking about words like speed, quick, fast, immediate, right away, in the bag.
Business financing takes time to get in place and in many cases its time you don’t have.
Here are a few examples.
The bank calls your demand loan for no reason other than they can. Your suppliers cut back your credit because they feel like it. You’ve got a purchase order in hand that can double your business, but you don’t have enough money to cash flow the deal. You’re behind on your government payments that you’ve got 60 days to pay up or they’ll seize your bank accounts and call your customers directly for payment of your receivables. The property you’ve been dreaming about getting finally has come on the market, but you only can hold on to the right to buy for 30 days. You’re in the middle of a construction project and you’ve run out of money. etc. etc. etc.
In all these cases, money is required and its required fast, quickly, right away.
And one of the only truly fast ways you can get money these days is via private mortgages on real estate.
Now of course you need to have a piece of real estate that someone is interested in mortgage financing that has some equity in it. And you should have a basic package of information together including a recent appraisal and potentially an environmental report. These two pieces of information are something you should always have done in the last 5 years so you can quickly leverage a property.
You also have to have the willingness to pay more than prime plus one on the mortgage. Private lenders are not cheap, but when you consider the costs you may be incurring for not getting the money in time, or the opportunity cost being lost, the price of a private mortgage can pale in comparison.
So how fast is fast.
Well, for some private mortgage scenarios where everything is readily available to the lender for review, a commitment and disbursement can happen in a matter of days. That’s right, days. Not weeks and months, but days.
Of course, in most cases the process may take a week or two, but compared to the alternative, you’re talking about a rocket sled on rails.
If you have a need for cash right now and need a source of bridge financing for a piece of real estate you own or are trying to acquire, then give me a call right away so I can quickly assess your requirements and come up with relevant options for your review.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel