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Hard Money Bridge Loans for Your Real Estate Financing Needs A bridge is something that connects two different areas to overcome the difficulty of getting to the other side. Bridge loans can be looked at in the same manner. The situation when you need a bridge loan is when you want to purchase a real estate property and the home owner is in need of quick cash. To be able to purchase that property you need go get a quick loan, or money that can bridge that need. So the bridge money is able to get you quickly to the other side which is to purchase the property. As much as it is possible, we use bridges to get to the other side fast. It is short term and the people who use the bridge already know their destination and that is the reason why they can also decide what their exit strategy should be. The bridge then between you and the property to purchase is hard money financing. Ideally, to understand it more, you want to purchase an almost foreclosed property which the owner wishes to dispose with quick cash. You are willing to buy the property but you need financing. One option is by getting financing through ordinary bank loan or from a traditional lender but this will take months before it is released and it will entail a lot of paperwork also. If the owner needs quick cash, then this long period of waiting for the loan can make you lose the deal. So the best option for you is to get the hard money bridge loan because the loan is short terms and can be acquired within a few days. An exit strategy for returning the loan is also important to have. It is important that you get hard money with a good equity position, meaning that you loan application is based upon good collateral.
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Even if you have a poor credit history or even if you have just lost your job, you can still take advantage of bridge loans. A good equity is what you must have. Bridge lenders will immediately release funds once the independent evaluators they send to you come back with a good report. These loans are usually good for six months maximum.
Practical and Helpful Tips: Options
With hard money bridge loans, what is important is your good equity and your loan will be approved immediately based upon the property to be purchased and nothing else. So if you have a clear cut exit strategy and need short term financing, then hard money bridge loans is for you. With traditional banks loans and lender loans, the best deals on property purchases can be lost.