Property flips, whether residential or commercial, are some of the most accessible undertakings for real estate investors. People who are new to real estate and seasoned pros alike take on real estate flipping projects to generate revenue in a short period through sales instead of rentals. Bridge loans play a big role in ensuring a property flip stays on schedule so real estate investors can go from purchase to sale smoothly and efficiently.
What Are Bridge Loans?
Bridge loans get their name from their ability to quickly fill in any gaps in funding during projects. For example, a real estate investor lines up a great property flip and the seller accepts the offer. The property investor then takes out a loan to cover the sale price. Next, the real work begins as the investor needs to line up contractors, materials, permits, and more to start renovating the property and getting it ready to list.
While the larger loan is still in the pipeline, having access to a source of capital to cover those immediate costs can mean the difference between completing the property flip early and having to put everything on the back burner for weeks or months. Bridge loans are designed to cover those gaps in financing, as well as any unexpected costs that may crop up along the way, such as replacing plumbing or electrical work. Bridge loans can also be used for staging properties to give potential buyers an idea of how they can utilize space as a residence or for commercial and industrial purposes.
Get the Bridge Financing You Need
At Web Finance Direct, we share in the vision of property flippers and commend them for their larger positive impact. Let us help you with your next property flip through our commercial real estate financing solutions, including bridge loans. From purchasing to renovating, staging, and listing, we work with real estate investors to understand their needs and provide a funding solution to help them reach their goals and generate revenue. If you are lining up your next property flip and need funding to cover time-sensitive expenses, contact us today and ask about our bridge loan options.