How to Offer Bridge Loans to Your Real Estate Clients

Let’s face it—today’s real estate investors aren’t waiting around for traditional lenders to make up their minds. With bridge loan volume up 25% this year and rates holding steady at 11%, your clients are looking for brokers who can move as fast as the market does. If you’re not offering bridge financing yet, you’re missing out on one of the most lucrative opportunities in 2025.

The key? Knowing precisely what investors require today—speed, flexibility, and certainty. Whether you're dealing with fix-and-flip buyers, commercial buyers, or portfolio builders, bridge loans can be your competitive advantage.

That's where bridge loans enter the picture. As a broker, knowing how to provide bridge loans to your clients can position you as their trusted advisor, secure more business, and build deeper relationships with both borrowers and private lenders.

Continue reading as we cover:

• What Bridge Loans Are
• The 2025 Market Snapshot & Key Statistics
• Common Uses for Bridge Loans
• Pros & Cons of Bridge Financing
• How Brokers Can Present Bridge Loan Programs
• Partnering with RCN Capital for Bridge Solutions

1. What Bridge Loans Are

A bridge loan is a short-term, interest-only product financing usually 12 to 24 months in duration, used to "bridge" the interval from a property purchase (or construction) through to its permanent financing or sale. As opposed to regular mortgages, bridge loans are based mainly on collateral property value and the exit strategy of the borrower instead of personal income statistics.

Key characteristics:

• Term: Usually 12–24 months.
• Structure: Interest-only payments, often with principal due at maturity or via refinance.
• Rates: Higher than conventional (averaging around 11–12%).
• Speed: Can close in 7–14 days versus 30–60 days for bank loans.
• Collateralized: Secured by the subject property; LTVs generally range from 60–75%.

2. Market Snapshot & Key Statistics

The market for bridge loans has grown significantly over the past few years. Bridge loan volume grew by 51% year-over-year between January 2024 and January 2025, which reflects high demand among real estate investors for short-term funding options.

• Volume Growth: Bridge loan originations grew by 25% between January 2023 and January 2024 among a steady user base, which shows investors increasingly relying on quick liquidity in a tight market.
• Interest Rates: Bridge loan interest rates have been relatively constant, usually between 10% and 12%. The average interest rate dropped from 11.53% in January 2024 to 11.12% in August 2024.
• Transaction Sizes: The sizes of the loans have also increased, as average loan sizes went up from $583,060 in January 2024 to $667,527 in December 2024, before stabilizing at $634,321 in early 2025
• Top Markets: California (Los Angeles, San Diego), Florida (Miami), Illinois (Cook County) control volume; new hotspots in New Jersey, then break the top 10.

These trends illustrate the intensity of demand for short-term capital as well as borrowers' willingness to pay premium prices for expediency and assurance.

3. Common Uses for Bridge Loans

Bridge loans serve multiple investment strategies:

• Fix-and-Flip Projects
  Borrowers who intend to rehab and resell in a matter of months use bridge lending to buy and fix up, and then refinance or sell.
• Ground-Up Construction
  When developers require capital for the purchase of land and the early stages of construction, a bridge loan can finance the shortfall until a construction loan or permanent financing assumes responsibility.
• Bridge-to-Agency for Multifamily
  Multifamily investors employ short-term bridge finance to close transactions in a hurry, make value-adds, and then switch to Fannie Mae/Freddie Mac agency loans with lower long-term rates.
• Portfolio Refinance & Acquisition
  Owners can draw on bridge loans to refinance upcoming debt maturities or finance simultaneous purchases prior to implementing a bulk portfolio restructure.

4. Pros & Cons of Bridge Financing

Advantages

• Speed to Close: 7–14 day closings empower investors to win competitive bids.
• Flexibility: Custom structures—interest-only payments, deferred fees, equity participation—tailor to each deal’s timing and risk.
• Bridge-to-Long-Term: Allows time to stabilize, improve, or reposition assets before converting to permanent loans.

Drawbacks

• Higher Cost: Average rates around 11–12% versus 6–7% for 30-year mortgages.
• Short Duration: Necessitates clear, executable exit strategies or refinancing plans.
• Lender Fees & Prepayments: Some loans carry origination fees up to 2% and prepayment penalties if they are paid off too quickly.

5. How Brokers Can Package & Present Bridge Loan Programs

To effectively offer bridge loans, brokers should:

1. Educate Clients on Market Realities
   Highlight that the volume of bridges is up 25% and average balances are now more than $400K. Highlight that fast closings can lock in deals ahead of competitors.
   
   
2. Map the Exit Strategy
   All bridge loans must have a good exit—sale, refinance into construction or agency debt, or long-term portfolio recap. Lenders need assurance of how the loan is going to be repaid.
   
   
3. Leverage Local Data
   Pull comps at the county level and vacancy rates. If Miami moved 21 positions in volume rank, demonstrate to borrowers where the demand and rent rates are highest.
   
   
4. Bundle Bridge with Agency Options
   Offer a "bridge-to-agency" route: close rapidly on bridge lending, implement improvements, and then transition effortlessly into Fannie Mae or Freddie Mac programs—particularly effective for multifamily investors.
   
   
5. Streamline Documentation
   Pre-qualify consumers with minimal collateral and equity parameters. Collect property appraisals, title reports, and bids from contractors beforehand in anticipation of lender underwriting requirements.

6. Partnering with RCN Capital for Bridge Loan Solutions

At RCN Capital, we understand that wholesale partners require solid bridge loan products and quick support. Here's how we enable brokers:

• Competitive Bridge Loan Programs
  Adjustable-rate, interest-only structures up to 75% LTV, with terms to 24 months.
• Speed & Certainty
  In-house underwriting allows approvals in as little as 7-10 days and funding within two weeks.
• Co-Branded Marketing & Training
  Access to RCN's broker portal with customizable rate sheets, flyers, and loan checklists to make client conversations easier.
• Dedicated Wholesale Support
  One point of contact for credit approvals, deal structuring, and post-closing questions—so you can keep your clients on the move.

Final Thoughts

The winners in 2025 aren't those who have the most money. It's those with brokers who understand how to be resourceful with funds. Bridge loans are not a product; they're a relationship builder. When you can say to a client, "I can get this done in 10 days," you're not making a deal. You're becoming their first choice for every future possibility.

At RCN Capital, we've witnessed brokers double their production by incorporating bridge loans into their arsenal. The great news? You don't have to reinvent the wheel. With our pre-approved terms, underwriters focused on your business, and broker-friendly commissions, you can begin offering this solution tomorrow—no guesswork necessary.

Ready to offer bridge loans that close in days, not weeks?
Reach out to RCN Capital's Dedicated Lending Team today to learn about our bridge loan products and receive co-branded marketing materials to win more business in 2025.