Bridge2NewHome

 By definition, a bridge loan is a real estate loan intended for a  relatively short time period – typically ranging from six months to three years. Its name is derived from its function: it literally bridges  a gap in financing, whatever the reason. Traditional commercial real estate loans funded by institutional lenders such as banks or life  insurance company are typically long-term loans, lasting between 5 and 30 years. Bridge loans are financed by private capital and hard money lenders. As such, they usually have higher interest rates and loan fees, but these costs are offset by the speed at which they can be obtained. As a Denver, Colorado-based hard money lender, Bridge2NewHome is able to underwrite bridge loans for local borrowers in a timely manner. 

How do bridge loans work? This loan type earned its name because it bridges a gap in traditional lending. Suppose for example, you have  finally found the right land to buy to build the commercial property you need but the seller insists on closing the sale in an extremely short time frame. If you have 100% of the cash for this land purchase in your bank account – no problem. If you, like almost all commercial real estate investors, need to leverage your purchase, it may be time to  learn more about bridge lending and bridge lenders.

When the perfect property, at the perfect location comes on the market, you do not want to take a chance to lose it to another buyer.  Many sellers are more willing to sign a contract that does not have a  loan contingency. Working with a bridge lender, such as Bridge2NewHome, you may be able to commit to buy the property without a loan contingency because your initial contact at the bridge lender typically  is with the decision maker, not a junior employee, and you can often get  a commitment for a loan within 24 hours.