Bridge loans are the most flexible financing option for an individual as well as a company. This loan type is a short term loan granted to people who are yet to secure permanent financing solution.
Bridge loan can be acquired by securing real estate assets. Such loans have floating rates and the interest rate is much higher when compared to the other permanent financing options. Bridge loans can be used for many reasons including purchasing, renovating or selling a property under tight closing deadline.
Some of the other reasons when one can apply for bridge loans are
- Looking for a new renter
- Stabilizing the inflow of cash on property
- Settling down any short term issue related to the property
Pros of Bridge Loans
The main advantage of bridge financing is the flexibility that it offers. It allows borrowers to meet any immediate expenses, a quick closures on property, find new tenants, complete renovation, etc.
Such loans are non-recourse, meaning the borrowers need to repay the outstanding funds through property. Personally, the borrowers are not financially responsible for the loan. In case the worth of property does not cover the outstanding loan balance, the lenders cannot ask for compensation. Considering the current real estate market, this is the best financing option.
Nicholas Kahrilas, one of the leading entrepreneur and the CEO and president of Kahrilas Group suggests that bridge loan is the best flexible financing option for borrowers, as it allows them to access money to suffice their short term expenses. To apply for bridge loan, you could contact them through their website or by calling them on their official phone number.