Buying commercial property is often the gateway to big profits. Securing a great piece of commercial real estate can come at a hefty price. Many people need to finance these types of purchases. One possibility for financing is a bridge loan.
Bridge Loans: A Brief Review
A bridge loan is a short-term loan used most commonly for real estate purchases. Its name is suggestive of its main use: It is taken out to “bridge” the gap between property purchase, and the arrival of funds from the selling of another property or securing a long-term mortgage.
Why Utilize a Bridge Loan?
A person interested in purchasing commercial property may be interested in obtaining a bridge loan for several reasons:
The deal may be available only for a very short time and speed is of the essence
A cheaper long-term mortgage is coming, but the funding won’t arrive for a period of time
You intend to purchase the property using the proceeds from the sale of another property that hasn’t closed yet
A bridge loan can come with high rates, so those considering one need to be fully aware of the costs involved. That is why they are generally used for short-term situations.
Using a Bridge Loan for Commercial Real Estate
In some cases, a bridge loan may be the ideal method to secure a coveted commercial property. For example, if there are no good deals available in the traditional mortgage market, a bridge loan may be preferable.
If you are looking to purchase commercial property, look to Artis Commercial Capital for your financing needs. They will answer any additional questions that you might have about bridge loans as well as suggest other options that may be suitable for your specific situation.