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How Does a Bridge Loan Work in 2023?

Are you considering your next real estate purchase? In many cases, the first or most common choice for real estate investors is to seek traditional financing. Although some financial institutions may be able to close on time, they aren’t always the best option. 

Alternatively, you may want to consider bridge loans as a practical financing option for your upcoming real estate investment. This article will cover the various uses of bridge loans, explain how the process works, and weigh the advantages and disadvantages. 

Different Uses for a Bridge Loan

A bridge loan can be used for financing both commercial and non-owner-occupied residential real estate. On the residential side, bridge loans are commonly used to pull existing equity out of an individual’s current investment property to put towards a new purchase. They can also be used to delay a looming balloon payment owed to the current lender. A bridge loan will help fill any cash shortages, while maintaining the borrower’s financial health. 

Commercial bridge loans also have a variety of uses. For one, commercial bridge loans infuse speed and flexibility into the purchasing process. This allows commercial real estate investors to close quickly on competitive real estate opportunities. In addition, commercial bridge loans can be used for fix-and-flip scenarios, which traditional financial institutions are hesitant to finance.

How Does a Bridge Loan Work in 2023?

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.

How Does a Bridge Loan Work in 2023?

How a Bridge Loan Works

The bridge loan process is fairly straightforward. Once you identify a property you want to purchase, you will reach out to a private lender, like Wilshire Quinn Capital. It’s best to have a target property already identified since the process moves quickly. 

Then, you will go through an application process. One advantage of this process is the flexibility. Although credit can factor in, other aspects, like the loan-to-value ratio and location carry more weight in the lending decision. With Wilshire Quinn Capital, after receiving a completed loan application, they can let you know their interest in your loan request within hours.  

After you’ve been approved for a bridge loan, a term sheet will be issued immediately and you’ll receive funding in as little as 5 business days. 

What are the Pros and Cons of Bridge Loans? 

Bridge loans have both pros and cons. First, bridge loans are great if you are looking for a quick turnaround time. Most loans have the ability to close within a few days, which is important given recent market conditions. Leniency in the application process is another benefit. Investors who have less than ideal credit scores or high debt-to-income ratios can still close on their real estate transactions utilizing a bridge loan. 

The main disadvantage of bridge loans are the high interest rates. Since bridge loans are not meant to be a long-term solution, lenders will charge higher interest rates, typically ranging from 9% to 12%. However, most real estate investors aren’t concerned about this, as they will refinance their investment property with a traditional lender at lower terms, or sell an existing property to pay off the bridge loan. 


Are you ready to take out a bridge loan? If so, it’s important that you work with the right bridge loan lender. Our team at Wilshire Quinn Capital has over 12 years of experience helping real estate investors finance their investment properties nationwide. Reach out today and secure financing for your next real estate investment.

  • Funding typically in 5-7 business days
  • Loan Amounts from $500,000 to $20,000,000

  • Interest Rates from 9% to 12%

  • Loan Term: 6 – 18 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.

Recently Funded Hard Money Loan Transactions

Slide Hollywood, California Hard Money Bridge Loan Funded LOS ANGELES, CA Loan Amount: $5,075,000 Loan Type: Refinance Property Type: Multi-Family Loan-To-Value: 64% Term: 12 Months San Clemente, California, Hard Money Cash Out Refinance Loan Funded SAN CLEMENTE, CA Loan Amount: $2,580,000 Loan Type: Refinance Property Type: Single-Family Loan-To-Value: 59% Term: 12 Months BERKELEY, CA Loan Amount: $3,575,000 Loan Type: Purchase Property Type: Multi-Family Loan-To-Value: 68% Term: 12 Months Loan Amount: $12,550,000 Hard Money Loan Funded on Two Hotel Properties in Laguna Beach, California LAGUNA BEACH, CA Loan Type: Refinance Property Type: Hospitality Loan-To-Value: 51% Term: 12 Months Loan Amount: $12,550,000

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By |October 15th, 2023|Categories: Bridge Loan|Tags: |
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