Why Get a Multifamily Bridge Loan?
Two of the main reasons investors secure multifamily bridge loans are:
- Construction completion: Multifamily bridge loans can keep a property financially secure while construction is still in effect. Whether it’s for upgrades or putting the final touches on a property, a multifamily bridge loan provides the financing your property needs to stay a float.
- Borrower or property legal, financial, and credit issues: Some people turn to multifamily bridge loans when all cash is not an option for purchasing a property.
Multifamily bridge loans are ideal for repositioning a property so that the investor can eventually get the competitive permanent financing they want or sell the project after the property has been stabilized. That’s why many people use multifamily bridge loans for fixer-upper apartment complexes. These loans keep the property in question financed while the investor completes the upgrades to the point where they can lease out the property.
Plus, unlike other loans that are based on parameters like the income the property generates and guarantor credit, multifamily bridge loans are based on the value of the property. They tend to close quickly and make funds available when other lines of credit may not be.
