Bridge Loans

"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:

1. Property is damaged.
2. Property is not producing income or enough income to debt service.
3. Borrower doesn't have enough time to procure a bank loan or can't qualify owing to credit history.
4. Borrower or property has legal problems.
5. 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!