Tony Hartman and the Basics of Bridge Financing
Often referred to as easy money or hard money, bridge financing is a type of short-term financing by a company before their initial public offering (IPO). This method of financing is often used to make a forwarded payment for a future sale or to obtain the necessary funds for advanced maintenance of operations. Since bridge loans are usually made privately instead of through a bank, the interest rates tend to be higher than they would be on bank loans.
Homeowners will usually use a bridge loan to fund a down payment on a property while they still own another property. This usually means that the homeowner is responsible for two mortgages at the same time and they are using the bridge loan to pay off a mortgage in their old home and to make a down payment on their new home. This option does not require any monthly payments, and the only payment that the homeowner will make is to their new home.
Another way a homeowner might use a bridge loan is to keep the old mortgage and use the equity built up on the existing mortgage to put toward a down payment on the new property. This use of the loan is considered more of a home equity line of credit (HELOC), which can be paid off along with your previous mortgage once the old home is sold.
For investors such as Tony Hartman in Colorado, providing bridge financing can be beneficial if used correctly. First, it allows investors to expand the use of their money and use a bridge loan on two properties at once. Bridge loans also allow real estate investors less stress and more flexibility because they do not include financing partners or family members. Lastly, bridge loans are much quicker than bank loans and come with less requirements, which makes the process of financing much faster, leaving more room for quicker results and more opportunity to sell a home before the offer is taken by an investor.
For more information on how bridge loans work, contact real estate investor, Tony Hartman to see if they are the best option for you.
Denver Finance Group and Tony Hartman offer real estate solutions from the most experienced professionals in the industry. Services offered by Tony Hartman Colorado Financial Group include Bridge Financing, Bridge Loans, Real Estate Investment Strategies and more. To learn more about Tony Hartman Denver, please visit: http://tonyhartman.org/
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