For those who are new to investing in real estate, the common question is, what is bridge financing? A better question is, what is bridge financing, and how does it benefit commercial Real Estate investors?
For investors that are well-versed in bridge financing you understand the importance of having access to reliable and reputable bridge lenders.
Bridge financing is short-term financing, sometimes referred to as private money, smart money, or hard money. Bridge loans are typically made by private individuals and not banks, so the interest rates on bridge loans are higher than on bank loans. International bridge lending allows non-U.S. citizens / Foreign Nationals to invest in U.S. or other global Real Estate projects by providing the needed capital in a quick and efficient manner.
Many of the commercial real estate investors who were able to purchase distressed commercial properties in recent years made out very well. In order to act on multiple opportunities at the same time, many real estate investors have turned to bridge financing.
Bridge financing benefits investors in 3 important ways:
1. Bridge financing allows investors to make their money go further. For example, if two properties come together at the same time, an investor can purchase both properties using a bridge loan on each purchase.
2. Bridge financing removes partners or family members from a deal. Investing with family members or business partners can be tricky. Bridge loans can remove other partners from the equation, allowing an investor more freedom and flexibility with a newly acquired asset.
3. Bridge loans fund faster than bank loans. If an opportunity is good, it won't last long. Bridge loans have fewer requirements than bank loans and thus close quicker. Bridge financing allows investors can grab a fleeting opportunity before another investor snatches it up.
International bridge financing for global/international real estate projects?
Global Mortgage Group's extensive network offers numerous options for Bridge Financing regardless of your citizenship. Whether for a hotel project in Spain, land in Thailand, or a dairy farm in India, GMG is your solution for reliable capital sourcing.
Our capital network and experience in international bridge lending expands borders.
With over 70 combined years of experience in the mortgage and investment banking industry and with access to funds around the world, GMG will consider most international bridge funding requests. Currently, we offer bridge lending on international and foreign borrowers with a minimum loan amount of US$3M with a maximum of 50% LTV/LTC.
"We close loans, others can't"GMG Partners
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