What Is a Bridge Loan and What Are Its Benefits for Real Estate Investors?
Blog Summary: Bridge loans are short-term financing tools typically 6 to 24 months long that help real estate investors act quickly on real estate opportunities. They offer fast capital, flexibility, and access to equity, making them ideal for competitive markets. Investors can secure deals, fund improvements, and scale portfolios without traditional financing delays.
- Key benefits: speed, equity access, asset repositioning
- No personal income verification
- Fast approval and funding timelines
- Close in as little as 10 days
- Terms: 6 to 24 months. Extensions possible on a case-by-case-basis.
- Provide cash out when property is already owned and has substantial equity
- Acquire or finance properties that are in disrepair
Investors often face situations in which they need to move fast on a real estate opportunity. Sometimes, they need to act before selling an existing asset or securing long-term financing.
When timing is everything, bridge loans become one of the most powerful tools real estate investors can use. They’re key to avoiding the delays of traditional funding.
What is a bridge loan, and how can it help savvy investors scale their portfolios, especially when time is of the essence? In this blog, we’ll discuss how bridge loans work. We’ll explore their benefits and discuss what real estate investors should consider when choosing this type of financing.
Continue reading to learn how short-term funding keeps deals moving.
What Is a Bridge Loan?
A bridge loan is a short-term financing solution. These unique loans are designed to "bridge the gap" between the purchase of a new property and the sale or refinancing of another.
Essentially, they allow real estate investors to access capital quickly without the long approval times of traditional mortgages.
Bridge loans for investors differ from bridge loans for consumers. For example, consumer borrowers might use a bridge loan to buy a new home before selling their current one. In contrast, real estate investors use bridge loans more strategically.
Reasons an investor might use a bridge loan include:
• Property acquisition
• Renovations
• Repositioning assets
• Tapping equity from existing holdings
A bridge loan delivers capital so investors can secure properties, make improvements, and refinance into a long-term mortgage.
How Does a Bridge Loan Work?
Bridge loans provide fast capital backed by real estate collateral. They’re commonly interest-only, with repayment due at the end of the term. In most cases, the term ends once the investor sells, refinances, or stabilizes the asset.
Benefits of Bridge Loans for Real Estate Investors
Real estate investors use bridge loans for several key reasons:
- Speed and flexibility that help investors close in days rather than weeks.
- Opportunity-driven financing, allowing investors to capitalize on distressed or undervalued properties.
- Asset repositioning to fund property upgrades or repositioning strategies.
- Access to equity without needing to sell a property.
- Portfolio growth without waiting on sales or approvals.
Bridge lenders like Myers Capital offer streamlined underwriting, expedited approvals, and flexible terms when traditional financing won’t apply.
Who Offers Bridge Loans?
Private lenders, specialty mortgage brokers, and direct lenders may offer bridge loans. Myers Capital is a trusted source for real estate investors in Hawaii and beyond. We offer tailored bridge loan solutions that support fast acquisitions on deals with a strong profitability margin.
How Do You Qualify for a Bridge Loan?
Bridge loan requirements vary by lender, but most investors will need:
- Sufficient equity in existing or target properties.
- A strong investment or exit strategy.
Myers Capital’s mortgage professionals work closely with investors to streamline the approval process. Our team will work with you to create creative financing strategies to help our investors execute on deals that make sense.
How Long Does It Take to Get a Bridge Loan?
How long it takes to get a bridge loan depends on deal complexity and documentation readiness.
With that said, one of the biggest advantages of bridge loans is speed. Strong, prepared candidates can often receive bridge financing efficiently. With Myers Capital, many bridge loans can be approved and funded in as little as 10 days.
The Bottom Line: Are Bridge Loans a Good Idea?
For investors with a strong investment and exit strategy, bridge loans can make a tremendous amount of sense. They provide access to opportunities that traditional financing would miss. If you are an aspiring or experienced real estate investor, bridge loans can help you capitalize on competitive opportunities.
Ready to act fast on your next investment opportunity? Contact us to learn more about Myers Capital’s flexible bridge loan options to get started.
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