Are you a real estate broker? Do you make a living flipping houses? If your livelihood is contingent on moving real estate properties quickly, you have likely encountered cash flow problems and unexpected hang-ups in the lending process from conventional banks and lenders. Fortunately, there is an alternative solution available to real estate investors. At RJ Funding Services (Rafter J Funding) one of our most popular offerings for real estate brokers and investors is access to private money. Also referred to as bridge loans, private money allows those in the real estate industry quick access to cash so that funds can be reinvested into new projects.
How Private Lending & Bridge Loans Work
Private lending and bridge loans are short-term loans that normally do not exceed 24 months (2 years). These loans are intended to give access to capital to purchase new properties or make repairs and cover remodeling costs for existing properties that will be sold in the near future. This type of money is ideal for rehabbers, home flippers, and investors because access to funding is provided much more quickly than traditional mortgages. Those applying for this type of business loan will leverage existing real estate assets as collateral and simply make monthly repayments until their loan is paid off. In some instances, these loans are repaid quickly, in full, after the sale of an investment property is complete.
Benefits of Bridge Loans and Private Money
There are unique benefits to receiving private money when it comes to real estate investments and transactions. For instance, if your capital is tied up in the sale of another property that you have rehabilitated or flipped, you likely will not be able to invest in another property unless you have liquidity. If funding your next real estate project is contingent on an upcoming sale or is tied up in a lengthy closing process, applying for a bridge loan might be the best way for you to move forward with your business as usual.
Our firm, RJ Funding Services has experience providing real estate investors with private money for residential and commercial properties throughout the United States and Canada. To learn more, call our team today at (325) 942-8685. Our team will be happy to help you navigate your varied alternative lending options.