Bridge loan is a financial aid for commercial real estate purchases, retrieve property from foreclosure or quickly close on a property. This may also be when you want to take advantage of a short-term opportunity to secure long-term financing. It is a lending, normally taken for two weeks or a few years. When applying for commercial bridge finance loans Atlanta GA residents should know the following.
This kind of lending might be expensive when compared to conventional types. This may be done to counter additional financial risks involved. The interest rates fixed are quite high. The financier may demand less loan-to-value ratio and cross-capitalization. The application process is straightforward where you will be required to present a few documents, for instance, your ID card.
You should be cautious of the repayment terms and dates. The repayment falls due once you have sold the estate. You must repay the full amount before the expiry of the repayment period stipulated. Delayed clearance may attract additional charges and fines. Prompt payment is one of the ways you can enhance your credit worthiness. Therefore, you can secure financial aid in the future.
This kind of borrowing is similar to hard money. Both may be considered as non-standard lending and are applied on a short-term basis. However, there are some disparities. Hard money is given by an individual, an investment pool and a non-banking company. The former is a borrowing advanced to clients to minimize gaps in long-term lending.
Some companies allow their customers to make the application online. The cash is deposited in their accounts after a simple process. This is a plus for most clients since they avoid the complicated procedures linked to these applications. You would get a form at the website and after filling it out, the company processes the amount you need. Remember that giving false details is illegal.
You will find plenty of firms offering this kind of loan. Therefore, you will not struggle to look for one. You only need to evaluate the terms and conditions for a given company. If you are comfortable, then make an application. You should undertake a detailed consultation with business advisers and financiers to assess the viability of the lending.
Therefore, it is your duty to approach the company of your choice and consult financial experts regarding the amount of money you need. You should be familiar with the repayment dates. Make sure you repay before the due date. This will improve your credit worthiness.
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Wholesale Commercial Lenders he recommends you check out www.ifundinternational.com.Google+