If you are into commercial real estate projects and run a real estate business of your own, then it makes sense for you to spend some time going through this article. One of the biggest problems for commercial real estate businesspersons is access to funds when they need it the most. Speedy availability of funds is important for the success or otherwise of such projects. Hence they would be on the lookout for lenders who can fill in the gap at least temporarily. At the same time, the borrowers would like to be sure that the costs of such borrowings are reasonable and not exorbitant. Amongst the many such options available, there are reasons to believe that choosing quick bridge funding could be a good option. It would be interesting to have a closer look at the reasons as to why they are considered so very different from others.
Understanding Of This Form Of Lending
When you choose the correct lender for commercial real estate projects you can be sure that you will be dealing with somebody who knows the intricacies of such funding and they will be able to move speedily and get the job done for you as a borrower. All that is needed is a phone call and these specially trained and qualified lenders will get in touch with you and take the matter forward. They will try and understand the requirements fully well and come out with highly customized and customer-specific solutions so that it is a win-win situation both for the borrowers and the lenders. Speed and fast completion of the process is very important and you can expect the same when you deal with these professionals.
They Fund Bigger Amounts
However, we need to bear in mind that these types of lenders would be suitable only if you have requirements for big amount. Normally, the bridge loan funding is to the tune of $500,000 and above. It also would be pertinent to understand that these professionals could help in funding for a variety of real estate projects. It could be apartments, office condominiums, industrial buildings, factories, warehouses, self storage units, hotels and motels and also assisted living facilities. They also fund for convenience stores, malls and also commercial buildings that are owner occupied. Hence, you can be sure that you will be able to access funds for a whole range of commercial construction activities or even when it comes to outright purchase of such properties.
The Interest Rates Are Quite High
It would be pertinent to mention here that the interest rates for such quick bridge loan funding will be higher when compared to conventional mortgage loans. Normally, the interest rates would be in double digits though there could be instances where the lenders might be ready to offer the loans at 8%. The LTV ratio is usually capped at 65% and therefore this point should be kept in mind. The loan tenors usually range from 12 months to 36 months and it can be higher in some cases. Hence there are reasons to approach such lenders for your bridge loan funding requirements.