RTC’s Bridge Program provides lending on assets that are in transition with less documentation than traditional financing options.
"When I bought the fourplex in San Francisco last year, I got a Bridge Loan from Red Tower Capital. The property was substantially damaged and mostly unrentable. Only one of the tenants was paying." - Trisha P., Real Estate Investor
What Is a Bridge Loan?
A bridge loan is a short-term loan used until the borrower secures permanent financing. It affords the borrower time to take care of an existing problem until the property can be restored to a more stable, more valuable, state.
Usually this means fixing physical or legal problems with the property and/or improving the income so it can be refinanced with more conventional sources or sold retail.
Situations that might require a Bridge Loan:
- Property is damaged.
- Property is not producing income or enough income to debt service.
- Borrower doesn't have enough time to procure a bank loan or can't qualify owing to credit history.
- Borrower or property has legal problems.
- Borrower "got a good deal" on the property purchase recently and needs the property to "season" before it can be sold for retail price or before a bank will give it market value for a loan.
Do not hesitate to reach out to discuss your loan scenario and get a quote!
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