5 Reasons Every Broker Should Offer Bridge Loans

Bridge loans can be a greatly useful tool for investment projects, allowing borrowers to fund deals in situations where traditional financing doesn’t make the cut. These financing programs offer unmatched speed and flexibility, and for brokers they open the door to a new client segment. Having a short-term, quick-close financing program gives both you and your borrowers a competitive edge in today’s fast-paced real estate market.

Are you a broker or wholesale lending partner who’s been considering offering bridge loan programs? Here are 5 great reasons to add them to your product offerings.

Reason #1: Speed Is Everything in Real Estate – Especially Today

Speed has always been crucial to winning deals, and that has become especially true in today’s highly competitive real estate market. Bridge loans offer unmatched speed, with the ability to get projects funded in as little as ten days. There’s really no comparison; a traditional mortgage loan can take weeks or months for approval in some cases. When investors need to move fast to beat competitors and secure hot properties, speed is crucial. Brokers who can deliver fast funding are indispensable, and offering bridge loans strengthens your position as a financial problem solver.

Reason #2: Expanding Your Product Offerings Means More Clients

Put simply, having a diverse range of loan products lets you fund a wider range of investments and expand your client base. Bridge loans can be used in a variety of deals where traditional loans don’t make sense. They are often used to purchase auction or foreclosure properties, and their shorter timeline is perfect for fix & flip or value-add projects. This is because unlike conventional mortgages, bridge loans can provide additional funds to cover renovations on top of property acquisition costs. Bridge loans are also useful for acquiring a home before selling an existing property, such as in a 1031 exchange.

The more problems you can solve, the more deals you close, but you also become a more valuable business partner to your clients.

Reason #3: Earn More, Faster

Bridge loans allow brokers to earn more in commissions because they often come with higher transaction amounts when compared to standard mortgages. Even better, their shorter loan duration means a quicker turnover and more opportunities to earn. Short-term investors tend to perform multiple projects per year, and they can become some of your best clients. Positioning yourself as a financing partner that specializes in short-term deals allows you to vastly increase your loan volume through repeat business.

Reason #4: Build Long-Term Investor Relationships

There are some great advantages that come with being a client’s go-to lending partner. Not only will they think of you first when they need financing for a property, but you will also be the first investment professional they refer friends and business partners to. Bridge loans open the door to lasting relationships, as the investors who use them typically go on to fund other quick projects or occasionally shift to a long-term strategy.

If you want to stand out as an investment partner, it comes down to providing value beyond financing. Utilize your expertise to guide clients from acquisition to exit and help them refine their investment strategy to maximize returns.

Reason #5: Compete in a Tight Market

Today’s real estate market is incredibly competitive, and so is the market for financing options. Bridge loans don’t just offer your clients a competitive edge; they can give you one too. Bridge loans help set you apart from the standard financing provider who only focuses on standard 30-year mortgages. These loans can be customized to fit the unique scenarios investors find themselves in, and your clients will surely value having a flexible lending partner who can provide financing options tailored to their situations.

Partner with a wholesale lending partner who understands the unique needs of these investors and values communication and transparency. This will make it easier for you to provide stellar service to your clients, and in turn, grow your business.

RCN Capital

To help your clients maximize the returns on their next investment, partner with a lender that can provide you with the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors and lending partners. If you are looking to offer bridge financing programs to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.