How Bridge Loans Can Benefit Real Estate Buyers
Buying and selling real estate are often parallel experiences, each exciting and stressful. Ideally, real estate investors would have enough cash to make a down payment on a new property without having to sell their existing property.
However, some real estate investors have to sell their property before financing the purchase of another, and in today’s seller’s market that can be a daunting task. Fortunately, bridge loans offer a solution to would be buyers trapped between one property and the next.
How Bridge Loans Work
Real estate investors looking to swap their current property for a new one often face difficulties securing a buyer for their property and purchasing a new one at the same time. Additionally, many real estate investors can’t afford to make a down payment on the new property before securing money from the sale of their old home.
As a solution, many in this situation choose to secure a bridge loan to cover the down payment on the new property, using their existing property as collateral. Bridge loans are typically issued for 12 months and borrowers can use the proceeds from the sale of their first property to pay off their current lender.
When Bridge Loans Benefit Real Estate Investors
A bridge loan may also be a good fit if:
- You are looking for a new property in a seller’s market and properties are selling quickly.
- The seller of the property you’re considering won’t accept an offer contingent on the sale of your existing property.
- You can’t afford a down payment on a new property without selling the one you currently own.
- The sale of your current property is scheduled to close after closing on the new property.
- You want to secure a new property before listing your existing property even though you are confident it will sell.
Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.
Bridge Loan Example
It can be difficult to envision just how beneficial a bridge loan can be for real estate investors without a practical example. Below is a situation demonstrating the value of bridge loans.
Mortgage Payoff and Down Payment
Imagine you currently owe $1,000,000 on the mortgage of your $3,000,000 property. You then take out a bridge loan for 60% of your property value, or $1,800,000. The bridge loan would pay off your current loan, leaving you with $800,000 (minus the bridge loan closing costs and fees) to put towards the purchase of another property or another business venture.
How to Find a Bridge Loan Lender
The most important part of taking out a bridge loan is finding a reputable, established lender that you can trust. At Wilshire Quinn, we have been providing rapid and reliable funding for borrowers since 2011. We have since grown to become one of the premier bridge lenders in California. Contact us today and find out how we can help you reap the benefits of a bridge loan the right way.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
- Interest Rates from 8% to 10.5%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
About Wilshire Quinn
Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.
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