You should consider a commercial bridge loan when you need quick access to funds for purchasing new property, renovating an existing property, or when you're in the process of selling a property and need interim financing.

Eligible properties typically include:
-Single-family homes
-Multi-family properties (e.x., duplexes)
-Condos or townhomes
-Office buildings
-Retail spaces (e.x., Shopping mall
-Industrial properties, and hospitality establishments.

Interest rates for bridge loans can vary widely based on market conditions, the borrower’s creditworthiness, and the property’s appraisal value. However, they are usually higher than traditional long-term financing options (typically 8%-12%)

The required credit score is 650 min.
While most lenders continue to examine your credit report during the loan application process, this review is not the primary determinant for loan approval. Instead, assessing your credit score serves as a way to assess your eligibility for refinancing into a traditional commercial loan, which can be a strategic exit strategy

Yes, most bridge loans require a down payment. The amount varies by lender and can range from 20-30% of the property’s purchase price.

Lenders determine the loan amount by evaluating the loan-to-cost (LTC) and loan-to-value (LTV) ratios. The LTC is based on the property’s acquisition and renovation costs, with loans typically ranging from 65% to 80%.
They also consider the after-repair value (ARV), which reflects the market value after renovations and potential cash generation. Bridge loan lenders may offer up to 85% LTV based on the property's completed value.

Yes, our bridge loans comes with various fees, including origination fees, and closing costs, so it’s essential to review the terms before proceeding.

No Prepayment Penalty.

Our bridge loans are specifically crafted for:

1.)Real Estate Investors: Take control of your property purchases by financing a new asset while your current one is on the market.
2.) Business Owners: Keep your operations running smoothly by covering essential expenses or seizing urgent project opportunities during cash flow challenges.
3.) Developers: Gain immediate access to funds for construction or renovation, allowing you to move forward without waiting for long-term financing.
4.) Entrepreneurs: Grow or expand your business confidently and swiftly, without the unnecessary delays of traditional loan approvals.

These loans can be used for a variety of purposes, such as acquiring real estate, financing renovations or improvements, providing working capital during transitional periods, or facilitating a quick purchase before securing long-term financing.

Bridge loans are perfect for situations where:

1.) Time Is of the Essence: Need fast access to capital? Bridge loans can be approved and funded much quicker than traditional loans.
2.) Short-Term Financing Is Required: Bridge loans typically have terms ranging from 6 to 36 months, ideal for temporary funding needs.
3.) You’re Pursuing Opportunities: Bridge loans allow you to act swiftly on lucrative opportunities, such as purchasing real estate, funding renovations, or acquiring equipment.
4.) Collateral Is Available: Bridge loans are often secured by assets like real estate, providing you with lower interest rates and flexible terms.

Lenders typically require a solid credit history, a reliable business plan, details on the property involved (such as appraisals), and sometimes collateral, such as the property being financed.

One of the main advantages of bridge loans is the speed of funding. Depending on the lender and the complexity of your application, you can often receive funds in a matter of days to a few weeks (15 to 30 days).

Risks include:
1.) Higher Interest Rates: Bridge loans typically have higher interest rates than traditional mortgages because they are short-term loans that pose more risk to lenders.
2.) Shorter Term: These loans are designed to be repaid quickly, usually within a year. If you cannot secure a replacement loan or encounter other financial issues, this can create problems.
3.) Risk of Default: If the borrower cannot sell the property, secure permanent financing, or otherwise repay the loan by the due date, they risk default, which could lead to foreclosure or loss of the collateral.
4.) High Closing Costs and Fees: Due to the high-interest rates and origination fees, bridge loans can be quite costly.
5.) Owning Two Properties: If your current property does not sell as quickly as anticipated, you may end up owning two properties simultaneously.
6.) Market Volatility: Real estate or financial market fluctuations could impact the borrower’s ability to sell their property or refinance, potentially leaving them with an unpaid loan balance.

Risk Mitigation Tips:
-Plan Ahead: Have a clear and realistic strategy for repayment or exit.
-Work with Reputable Lenders: GGIG choose lenders with transparent terms and a strong track record.
-Understand the Terms: Review all fees, interest rates, and repayment conditions carefully.
-Monitor the Market: Stay informed about market conditions that could impact your plans.
-Avoid Overborrowing: Ensure the loan amount aligns with your needs and ability to repay.

At the end of the loan term, you will need to repay the loan, usually by refinancing with a longer-term loan or selling the property. Our team will work with you to secure long-term financing options well before your bridge loan matures, ensuring a seamless transition. It’s important to have a clear exit strategy in place.

While both types of loans are often used for short-term financing and may involve quicker approvals, hard money loans are typically based on the value of the property rather than the borrower’s creditworthiness and often come with higher interest rates.