First, they are not used to buy a bridge.
Bridge loans are short term loans that bridge a gap to long term financing or for another property to sell.
These loans are use to fill a need for a short term capital. The bridge loan is always secured and will be paid out typically in less than a few months.
Bridge loans may be used to purchase a property while waiting on another property to close. Once the property sells the bridge loan would be paid off.
The loan works perfect when a bank is dragging its feet to close a loan and needs another 30 to 60 days for their processing.
As long as there is a property with good equity available it can be used as the collateral for the bridge loan.
If you have questions about bridge loans we are always here to help.
Shoot us a question at firstname.lastname@example.org and we will get right back to you.