A
Florida bridge loan is an immediate, short-term loan,
one to sixty months, usually made in anticipation
of intermediate or long-term financing. Pay back the
bridge when permanent financing is in place with no
prepayment penalties .
Florida
Bridge loans "bridges" two different types
of cash gaps. The first "bridge" is a loan
that institutional banks refuse to approve. The second
"bridge" is for the individual investor
or company who is between deals and requires immediate,
short-term funding until a traditional loan is issued.
BRIDGE
LOAN LENDERS
Bridge lenders only use private capital. "Loan
Committees" are comprised of one or more principals.
This creates an efficient and expeditious decision-making
atmosphere that enable lenders to quickly perform
their due diligence and fund loans as quickly as in
seven business days.
EXAMPLE
An owner of a $2,600,000 office building in excellent
condition, with a good positive cash flow, needs $800,000
to pay the IRS within 15 days. He is willing to sell
this property for $800,000 down to pay off the IRS.
The prospective buyer is property rich but cash poor,
and cannot raise this amount of cash within this time
period through conventional means. To take advantage
of this very narrow window of investment opportunity,
the buyer obtains the $800,000 bridge loan within
10 days to quickly secure property title. The buyer
then paid back the $850,000 within 30 days with no
prepayment penalties when loans from conventional
sources came through.
BRIDGE
LOAN GUIDELINES
Loan Amounts: $250,000 to $35,000,000 in all 50 states
and some foreign countries. Credit Ratings: Will consider
any credit rating: A+ to D, including bankruptcy.
Amount of Loan: Up to 65% of property value. Minimum
Down Payment: As little as 5% or 10% if seller carries
a second mortgage. Terms: 400 plus basis points over
corresponding U.S. Treasury index. This is subject
to credit rating, location, type and condition of
property. Loan Quote: 2 business days or less. Speed
of Loan: Loans are issued as quickly as 7 days.
Thank
you, for your interest in a Florida Bridge Loans.