BRIDGE LOANS

Bridge loans is another name for loans that are not made by institutions like banks and insurance companies and companies making loans related to government agency programs and the money markets. For the most part these are private companies and individuals. They are not regulated by a government agency, banking department or securities commission. Some may be regulated by bond indentures signed when they issued bonds. In general they are making loans at higher interest rates and shorter maturities. That is their disadvantage. Their one advantage is that they can act quickly and their underwriting can be more forgiving. They can do loans that others will not do.

There are an enormous number of companies in this business, both regional and national. Some specialize in a particular area, especially in areas where conventional lenders do not venture or are very hesitant. If we can work out a conventional loan for you or we can do one of the loans described elsewhere on our website you will be better off. There are some times when a bridge loan is the only way to go.

A borrower's personal financial statement will have a lot to do with the kind of loan that we can get for you. If you have a lot of assets and no cash liquidity you are creating difficulties for your borrowing ability. A lack of free cash flow is often another problem. Trying to do a very complex or a unique deal is often a problem. Borrowing against something that has limited future liquidity is usually a problem.

Many borrowers tend to hide their financial statements. They also try to minimize their cash. This is a mistake. We have the experience to refinance properties and to create liquidity. This will solve many problems but it does require some time to accomplish. Discuss your financial position with us. Hopefully we can help solve your problems. Call us with any questions that you may have in connection with borrowing and financing Commercial Real Estate. We have been in the business a long time. We are licensed and bonded. We are working for you.