When an investor is looking up for business opportunities in Miami real estate, the range of possibilities is vast. But sometimes, if we don’t have enough liquidity, we could end up with our hands tied up. This is the moment when bridge lending comes to be the star in this game.
Bridge lending is related to short-term loans, that aim to solve a special kind of needs that traditional bank mortgages couldn’t. Every now and then, a delay of one month could imply the loss of a great opportunity. This average mortgage bureaucracy can be skipped if we choose a bridge loan. Easily and quickly, the real estate investor can access the amount in need, and this will allow him or her to grab the opportunity, avoiding the loss of time due to paperwork or terms.
The lack of funds doesn’t necessarily imply that we have to let go of great business opportunities, or the house you’ve always dreamt. Maybe there’s simply a gap, a period in which you need to solve some matters in order to gain liquidity. In that instant, an opportunity shows up. ¿What would you do? ¿Would you let it pass? Bridge loans can save this gap for you to jump, to bridge that gap from one point to another one. They can afford your investments for a short-term period when you don’t have money enough in your account, or if you’re waiting to close another delayed transaction. If this is not enough, this kind of mortgages offers a lot of advantages among other kinds of financing. Following, let’s dig in deeper on each of them.
The 8 most important advantages of bridge lending
Bridge loans are not like any kind of known mortgage, they offer more flexibility and customization according to the investor’s needs and taking into account the transaction about to perform.
- When an investor can’t access a mortgage because of times, it’s common to immediately think in other financing options. Bridge loans rates are a little higher than mortgage rates but, at the same time, lower than personal loans rates, or rates of other kinds of loans.
- The investors can choose between options with variable or fixed rates. According to the length of the bridge loan, if the cancellation is in the short-term, it will be better a variable rate. If it’s a long-term bridge-loan, we suggest choosing fixed rates.
- A bridge-loan lender, knows everything related to business investments and the real estate market. For this reason, the loan can be personalized and approved faster, according to the investors business strategic plans. For example, the investor could cancel the loan with another property, with other businesses incomes, or refinancing the loan with a traditional mortgage.
- Bridge loans can be canceled at any point, anticipating its maturity, without any fee or penalty.
- It can be accorded for bridge loans, the possibility of making monthly interest payments (small payments), and cancel the initial amount when the loan expires.
- Bridge loans can be backed up by other assets, instead of being tied to the credit score or job incomes.
- This kind of mortgage loan is an excellent choice for foreign investors, when there’s no possible way of ascertaining funds or applying to local banks in Miami.
- The bridge loans are usually provided for periods from one to three years, with a possibility of renewal. It’s an excellent option if the investors don’t have exact dates of other related businesses in motion.
Bridge lending offers the last advantages we’ve mentioned, and some other ones. If you wish to calculate different possibilities you can try our loan calculator.
Bridge loans are the most convenient loans for foreign investors in Miami real estate. The customization of terms, rates and cancellation, are the best option when it’s time to request a loan in the Florida area.