How to Make Money with a Bridge Loan
Let’s talk about how you can make money with a bridge loan, especially if you’re stuck in a project or need temporary funding.
Now, you might be wondering, “What the heck is a bridge loan?” Well, it’s basically a short-term loan that closes a financial gap.
Let’s take a look at an example. If you have a hard money loan for a fix and flip or another value-add property, but you’ve run out of money, then this could be a perfect solution to help you finish it.
Because it’s way cheaper to get temporary funding than to get stuck in an expensive loan. It could take months or years for you to figure out a way to come up with the money to complete the project.
Not to mention dealing with the costs of an incomplete project. You have to think about things like materials, contractors, taxes, insurance…the list goes on and on.
Bridge loans also work great for starting a new project while waiting for current project to wrap up. You can use the equity in the current project to secure a new one. Once your current project closes, you can pay off the bridge loan and move on to your next real estate deal.
You can even use this type of funding to make a cash offer on a value-add property.
Essentially, a bridge loan is immediate cash flow.
It’s an excellent way to keep your projects moving along and your cash flow, well, flowing! Bridge loans prevent you and your bank account from growing stagnant—or worse, depleting. And that’s the last thing we want to see happen.
If you’re ready to chat about your options, we’re here to help! Our team is eager to set you on a path that helps you make the kind of money you need to live the life you want.