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Bridge loans are a powerful tool that investors can use to secure funding fast, a key feature that helps them find success in competitive markets. Bridge loans also provide borrowers with unmatched flexibility and the ability to customize loan terms to fit a project’s needs. For brokers and wholesale lending partners, bridge loans can also be a great offering that allow you to expand your business and reach a new segment of clients.
Are you looking to add bridge loans to your product offerings to reach more customers? Read on as we break down the benefits of these loans and how adding a bridge lender to your network can be a major advantage as a broker or wholesale lender.
What Are Bridge Loans & Why Do Investors Need Them?
A bridge loan is a form of short-term investment financing that is backed by collateral rather than the borrower’s financial standing. The collateral is often the property being financed, but it can also be other forms of owned property. This aspect helps make bridge loans much more flexible than traditional financing methods, and they can be used for a wider variety of purposes. Investors also choose bridge loans because they can be approved much faster than conventional mortgages, which is a key benefit in time-sensitive deal scenarios. These loans are designed to help “bridge” gaps in finances, giving borrowers enough time to secure funding through property sales or refinancing.
The Broker’s Advantage: How Bridge Loans Help You Close More Deals
The benefits of bridge loans are two-fold, they help investors finance more deals, and they help brokers expand into new markets and acquire more customers. Bridge loans are known for their unmatched speed; they can be approved with funds delivered in as little as 10 days. Their flexibility is also important since it means borrowers with unconventional financial profiles (like those without W-2 income) can still qualify for financing.
As a broker, offering these loans can help you solve more of your clients’ financing problems. Bridge loans allow you to finance a wider range of projects, especially when traditional financing doesn’t fit the bill, like for example in home flipping.
Why A Reliable Bridge Loan Lender is Essential in Your Network
The effectiveness of a bridge loan solution depends on the reliability of the lending partner you choose to work with. A trusted lending partner will be able to ensure a smooth transaction, with an emphasis on speed and customer service should problems arise. Choosing the right partner will help you retain more clients, leading to more business opportunities for you in the future. This will, however, require that you do some research of your own and investigate lender reviews and their process before deciding whether to work with them. A standout lender will not only have a variety of program offerings but will also be able to provide customized lending solutions to help you solve your clients’ financing problems.
What to Look for in a Bridge Loan Lender
When choosing a bridge loan lender to work with, there are a few specific qualities you should look for. Ideally, you want a lender that has a proven track record of delivering funding for real estate investments, and that specifically offers bridge financing programs. These lenders should prioritize speed and fast closing times, as this will help your clients close more deals. Also, a lender that prioritizes customer service and broker support will be exceptionally helpful if there are any issues with the loan. Being able to reach out to a dedicated loan representative allows you to sort these problems out quickly and keep your clients’ investments on track.
How to Build Relationships with Bridge Loan Lenders
So how do you actually connect with reliable lenders that offer bridge loans? Aside from doing online research, you can attend industry events to make new connections or ask for referrals from your existing network. Also, for each lender you should seek out reviews from their existing partners to get an understanding of how they typically operate. Lenders that offer programs and resources specifically for their brokers will be easier to work with.
From there, it is up to you to keep updated on lending guidelines and send deal scenarios to your chosen partner. As you continue to close deals with a certain lender, you may gain access to benefits like customized programs and a streamlined application process.
RCN Capital
The easiest way to save on an investment is to obtain financing from a real estate 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. If you are looking to finance a real estate project, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.