Reasons to Consider Property Bridging Finance

real estate financeReal estate is both complex and beautiful in that it delivers value and yet it also requires it at some point. It’s not a matter of surprise then that investors have constantly sought for the right financing not just to acquire but also to maintain them. But in a sea of options, what makes property bridging finance a rightful nominee? Let’s discuss.

  1. It’s an interim solution. – Everyone knows by now that properties cost a lot of money and such amount of resources take time. Where income sources like salaries, wages, profits and sales take a while to reach a certain threshold, credit options require a lot of patience to acquire given an often stringent set of requirements and qualifications. Add to this the fact that property acquisition comes with pre-purchase costs like security deposits and down payments that are upfront in nature. If someone beats us to it, the asset is a lost cause. What property bridging finance does is provide for these immediate short term liquidity needs thereby linking them up with a pending permanent cash source. It is for this reason that experts have labeled it as one of the most powerful stop gap measures of our time and we couldn’t agree more.
  2. They are short term in nature. – Which only means that they come with lesser if not no risks and burden. Their temporary nature, often between two weeks to three years, creates an environment that relieves users from the possibility of an unpaid liability should a financial struggle come up in the future. The longer loans are, the higher the burden and interests borrowers tend to shoulder.
  3. It champions flexibility. – There’s a lot of freedom that comes with property bridging finance. First, it features a non restricted use of funds. This means borrowers can spend and allocate them in any way they wish to and see fit. Second, payment comes in two options. Users can choose to pay out the bridge at its maturity date, the time by which the main fund line comes through, or before it to save up on interest expenses and free up liabilities should some other type of financing becomes available. The latter, as we’d all come to realize by now, is not a choice offered by other platforms. Lastly, it’s a resource available for use for everyone be it real or juridical entities, individuals or a group, profit or non-profit organizations, investors, owners, landlords and the list goes on.