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The Bridge Loan That Funds Your Real Estate Deals, Perfectly

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Investigating finance options with established bridge loan lenders in New York can be a smart way to leverage financing for deals when you don’t want to use your own funds.

Private money lenders are more concerned about the deal than the borrower’s credit score.  They also care more about the borrower’s investing track record. So whether you require a quick closing on potential investment property, or an LLC is looking to fund a sizeable down payment to buy multiple investment properties – a bridge loan allows the deal to fund quickly to start generating profits faster.

To learn more, below are the pros and cons of bridge loans and why they are such a great option for real estate investors.

All You Need to Know About Bridge Loans

stacks of coins behind a wood home model

Many investors go with the popular option of bridge mortgage loans as they give the best rates and the most extended terms, which make them an affordable option as well.

“A bridge loan is a short-term asset-based loan.”

How Does an Investment Bridge Loan Work?

A bridge loan is also known as a short-term loan or asset-based loan. They are used to acquire investment properties relatively quickly as they do not use conventional standards to measure the creditworthiness of a borrower.

To a large extent, securing a loan from a bank is a long process that requires the borrower to provide extensive paperwork. By eliminating this cumbersome processing, investors arm themselves with ready cash – when they need it — to close the deal.

When Are Bridge Loans a Great Option?

Bridge loans are a good option when:

Real Estate Investors Need to Acquire Properties Quickly 

Instead of waiting it out in the market through a traditional bank lender, investors can secure a loan on almost any real property of value from the best bridge loan lenders in New York.

Investors Need to Close on Land or Construction Deals

Men shaking hands

Loans for construction or renovation enable experienced investors and contractors to find access to funds to finance the construction.

A flexible underwriting criterion also allows them to secure the required funding otherwise not available to them through other institutions. At Gauntlet Funding, the underwriting process can take anywhere from 7 to 10 business days to fund and close the deal.                                                               

Require a Quick Access to Money

Any seasoned investor knows how crucial time can be for a quick close. Good deals often move quickly, with many having an average closing time of 10 days. This means with access to the required cash, you’re able to move the deal to a quick closure.

Borrowers Need to Consolidate Multiple Loans

An investor can simplify their financial life by consolidating multiple loans. These transitional loans usually carry a maximum loan term of two to three years.

“A flexible underwriting criteria allows you to secure the bridge loan.”

What Are the Risks to Consider?

The Cost of the Bridge Loan May Vary

The lending costs for a bridge loan will always be more expensive than conventional loans due to its higher risk. They typically carry a much higher interest rate.

It is Not for Conventional Borrowers

a woman holding dollar bills in front of face

A conventional mortgage borrower follows guidelines established by government-backed or bank institutions.

But because private bridge lenders NYC can set their own guidelines, a borrower does not need to use other collateral/investment, such as stocks and bonds, as security for hard loan money.

The Borrower Has the Ability to Afford Higher Rates

It is okay for borrowers with a bad credit score to approach a bridge lender in New York, but they should have the ability to afford the higher rates that come with private loans.

Contact Gauntlet Funding – Bridge Loan Lenders in New York Today

If you are looking for hard money lenders NY, Gauntlet Funding is the perfect choice for you. We are available to provide immediate assistance with your real estate investing needs. Call us today at (631) 465-2161 or contact online.

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