Commercial Bridge Loans for Your Short-Term Real Estate Opportunities
When we talk about bridge loans we are normally talking about opportunity costs with commercial real estate. There is an opportunity that exists and we want to jump on it while it is still available before someone else does. We may also be talking about a scenario in which we have to bridge a gap between where you are right now and where you want to go. Hence the term "bridge loan".
Banks usually look at the last three years of financials to see if there is proper cash-flow and collateral needed to fulfill their lending requirements for a project. When the financials are not currently sufficient or have not been sufficient for a long enough time period to appease the bank this will usually result in a turn-down. This is exactly why "bridge" financing exists and where we come in.