Fix & Flip/ Bridge Loans

Fix-and-Flip Loan

Many real estate investors start their careers with fix-and-flip projects. True American Funding offers bridge loans to help first-time investors and experienced firms alike get their fix-and-flip projects off the ground.

A Classic Real Estate Investment

In a fix-and-flip project, an investor buys a property that needs some repairs or renovations, and then sells it for a profit. This is a classic real estate investment strategy that has been used for decades.

Quick Financing

In the competitive fix-and-flip market, investors need to act quickly to secure the best properties. This means finding lenders who can provide fast funding with short closing times.

Why Choose a Bridge Loan?

Bridge loans are a type of short-term loan that can be used to finance the purchase of a property while you wait for the proceeds from the sale of your current property to close. This can be a great option for fix-and-flip investors, as it allows them to move quickly and acquire a new property without having to wait for the sale of their current property to close.

Bridge loans typically have shorter terms than traditional mortgages, and they may have higher interest rates. However, they can be a valuable tool for investors who need to close on a property quickly.

Additional Benefits

Flexibility

Bridge loans offer more flexibility than traditional loans. You don't have to sell your assets right away, and you don't have to worry about holding them for a long time.

Cash Availability

Individual investors and small investment firms often don't have enough cash on hand to buy properties outright. Bridge loans provide them with access to cash.

Higher Acquisition Volume

As you gain experience in fix-and-flip investing, you'll likely want to acquire multiple properties at once. Bridge loans can help you get the cash you need to do so.

Great Timing

If you see a great investment property while you're out and about, you can get the bridge loan funds you need to purchase it in as little as one week.

Bridge Loans

True American Funding provides bridge loans to real estate investors of all experience levels. We can help you secure the funds you need to purchase a property quickly and easily, with competitive rates and fast turnaround times.

What Are Bridge Loans?

Bridge loans are short-term loans that real estate investors can use to finance fix-and-flip projects and ground-up new construction projects. These loans are designed to help investors close on a property quickly while they wait for more permanent financing. Bridge loans typically have higher interest rates than traditional mortgages, but they can be a valuable tool for investors who need to move quickly.

Fix-and-Flip Bridge Loans

Bridge loans are a short-term financing option that can help fix-and-flip investors acquire the funds they need to purchase a property and complete the necessary renovations. The property’s projected post-renovation value serves as collateral for the loan, which means that the lender can seize the property if the borrower defaults on the loan.

Fix-and-Refinance

Bridge loans can be used in the BRRRR method, a real estate investment strategy that involves buying, renovating, renting, refinancing, and repeating. In this method, an investor purchases a property, renovates it, rents it out, and then uses the proceeds from the rental income to repay the bridge loan and take out a cash-out refinance loan to purchase another property. This process can be repeated to build a large portfolio of rental properties.

Ground-Up New Construction Bridge Loans

Bridge loans can also be used for ground-up new construction, but this is not always the best option. In some cases, the cost of building a home is significantly lower than the home’s projected selling price, making it a good way to secure capital. However, bridge loans for ground-up new construction can be more difficult to obtain and may have higher interest rates than other types of bridge loans.

What Do Bridge Loans Cover?

True American Funding offers bridge loans for a variety of property types, including single-family homes, condos, multifamily properties, and mixed-use properties. Our bridge loans have loan-to-value ratios up to 90% and interest rates starting at 9%. We also fund up to 100% of construction costs.

What Do You Need?

To qualify for a bridge loan, you will need a minimum FICO score of 620. Once you contact us, we will assign you a personal loan officer who will work with you through the entire process. This loan officer will email you a list of documents required to process your funding request.

What to Know About Bridge Loans

Once you provide your loan officer with the required documents for verification, we will begin processing your loan. We will review your documents carefully and get back to you within 24 to 48 hours. If your loan is approved, we will work with you to close your loan within seven business days. We understand that time is of the essence in real estate, and we are committed to providing you with the funding you need quickly.