How Bridge Loans Help Brokers Close Faster (and Smarter)

In today’s competitive real estate environment, brokers who are able to deliver funding quickly and reliably can solve more financing issues and close more loans. There are many short-term projects, such as fix and flip investments and value-adds which demand immediate funding. In these scenarios, traditional lending doesn’t make the cut, and brokers turn to bridge loans provided by private lenders.

Read on as we explore some of the basics of bridge loans and how they help brokers and lending partners expand their deal pipelines.

What Exactly Is a Bridge Loan?

A bridge loan is a short-term loan that ranges from 6-24 months in duration, typically offered by private lenders who operate in the real estate space. They can be used to fund a wide range of deals, but investors often use them to “bridge” gaps in their finances. The most common use case is purchasing a property while still in the process of selling an existing home. Bridge loans also offer many advantages which make them ideal for other projects. They’re more flexible than conventional loans, which makes them great for major renovation projects, and they can be approved faster, which is key when securing time-sensitive deals.

Why Speed Matters for Brokers

Speed is key in today’s highly competitive market where deals go in a matter of days. However, the speed bridge loans provide can also help brokers in other ways. You can build a reputation as a broker who funds deals quickly and reliably, growing your pipeline from referral business. Investors will choose you because you can help them navigate complex financing roadblocks. Faster closings also mean you get to see commissions sooner, vastly boosting your earning potential.

How Bridge Loans Help Brokers Close Faster

Bridge loans can close quickly because they are designed to deliver funding in time-sensitive deal scenarios. Private lenders have a much more flexible approval than conventional lenders. It is based on the property’s value rather than the borrower’s personal credit, which means even borrowers with non W2-income can still easily secure funding. Terms can be adjusted more easily, and funds can be delivered in as little as 10 days. Immediate access to capital also removes contingencies from offers, helping borrowers win more in competitive markets.

How Bridge Loans Help Brokers Close Smarter

These loans don’t just provide speed though; they can also serve as a relationship building tool. Bridge loans are often a way to rescue deals when traditional financing falls through. They can serve to expand your clients’ options in complex deal scenarios, and this helps position you as a financing problem solver. This can be a great way to increase repeat business and grow your client base through referrals. You can even market yourself as a broker who gets deals done fast and reliably.

Key Takeaways for Brokers:

• Bridge loans provide borrowers with speed and flexible terms to close more deals

• They offer brokers a way to fund short-term investment projects, where traditional financing doesn’t make the cut

• Brokers can integrate bridge loans into their toolbox to solve a variety of client financing problems

• Helping clients navigate their roadblocks builds trust and stronger investor relationships, leading to increased 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 to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.