Bridge Loans – When Things Have to Get Done Quickly

In today’s market environment, anyone wishing to achieve good returns from real estate has to respond quickly and flexibly to opportunities, which means “striking while the iron is hot”. This is precisely where so-called “bridge loans” come into play. They have a term of only a couple of months and are set up and drawn down within a short space of time. The aim is to tide over the period between the time when real estate is purchased and the disbursement of the bank financing. This enables investors to purchase real estate quickly, which can have major advantages when looking for properties. A long-term loan can then be set up in parallel without any time pressure, thereby structuring an optimal financing solution. Optimising the long-term financing structure means that the costs of the bridge loan can be offset over the term.