Securing financing for your property investments is the most important step in a successful project. Such a vital step in the process often requires a hefty degree of finesse, deep study, and research – even for experienced developers. Commercial properties tend to move quickly when they hit the market, leaving considerably less time for investors to make decisions and secure traditional forms of financing. One route you can take to capitalize on this quick turnaround time is to secure a bridge loan. Consider the following three benefits of securing such a loan:
3 Benefits of Securing a Bridge Loan
- Lightning fast financing – Because bridge loans are offered in a short-term window, they are processed with a high degree of haste. Bridge loans offered from EMCAP Lending are often approved within a week of your submittal of the request. This high-speed approval and awarding of your finances allows immediate purchasing power. Having the power to submit a bid on your next property before your competitors gives you an immediate leg up in the process. The sooner you secure the property, the sooner you can begin your project.
- It can provide hold-over funds – One of the biggest risks in real estate investing is having a financial stream run dry. Due to the lack of traditional financial collateral required with EMCAP bridge loans our clients are able to provide funding for a project without current income. Oftentimes commercial properties are released to the market after a business has failed or vacated the property, meaning that investors must have the funds to provide for their project without having an active cash flow. Securing a bridge loan fills that gap in income, allowing you time to both procure and renovate a property before finding tenants to provide an active income stream.
- Spending flexibility – Traditional loans are often burdened by restrictive spending. While you can invest traditional loans in your properties fairly liberally, most often those funds are locked in specific spending categories. With a bridge loan, once the money is in your hands, you are able to spread it around to a multitude of needs. One common utilization of a bridge loan is backpaying previous loans from earlier projects – this can help you secure future traditional loans on new projects due to a less cluttered line of credit. Additionally, bridge loans can help you pay your employees. While between projects or while ramping up for a new project, budgets can get tight. With a bridge loan you can ensure that your business stays afloat and your employees are paid well before the profits from your next project begin to roll in.
Getting started on your next project should be quick and easy – bridge loans can help. With EMCAP Lending’s prequalification process, you can find yourself getting ready for your next project in as little as 30 seconds. If you’re curious about additional funding options you can secure, please feel free to contact us today. Our experienced team of experts would love to help you succeed!