In many respects, all private mortgages could be classified as bridge loans as they are short term in duration.
But for our purposes, we are talking about bridge financing with private mortgages in the traditional sense whereby money is required for a defined period of time with a clear beginning and end.
And the use of funds for the bridge loan can pretty much be for anything, provided that there is real estate security being offered to secure the private mortgage.
Most types of bank or institutional mortgages are going to be very particular as to what the funds can be used for and how they will be repaid.
A private lender may still want to know the reason for the financing, but he or she will likely have a great deal of concern over the use of funds provided that its going towards a legitimate need.
As we mentioned, a bridge loan has a defined beginning and end, which means there is a clear exit strategy to repay the loan in the future.
This is also a major plus to securing a private mortgage because outside of the security value of the property, the next most important aspect of the lending decision is the exit strategy for repaying the loan in the future.
If you have a transaction or funding requirement that must be satisfied in a very short period of time and you have real estate that you can pledge for security, the turn around time from applying for financing to having money in your hand can be as quick as two to five business days.
In the financing world, outside of payday loans, merchant cash advances, factoring, and other high cost forms of short term borrowing, a private mortgage is the fastest, lowest cost financing you can arrange from scratch in a matter of days.
While all private mortgage lenders can provide bridge loans, not all are going to be set up for a faster closing if required and many can be restricted by the amount of funding you may require for bridge financing.
So its going to be important to be spending your time and effort concentrating on private lenders that can actually help you get bridge financing in place for the amount you require and within the time you have to work with.
The best way to accomplish this is to work with a private mortgage broker with direct access to a broad spectrum of private lenders so that you’re not wasting your time with those brokers or private lenders that either are not going to be able to help you, or will take too long to approve and advance funding.
Part of work with an experienced mortgage broker that provides bridge financing is that they already deal with private lenders and lawyers who are prepared to move quickly and get the transaction completed right away. This is hardly the norm, especially when it comes to involving outside legal counsel to perform the necessary registrations to complete the process.
If you’re looking for bridge financing for a real estate or non real estate related transaction, and you have property to offer as security to a private mortgage lender, I recommend that you give me a call so I can quickly assess your requirements and provide private mortgage bridge financing options for your immediate consideration.