Benefits of a Bridge Loan

Bridging the Gap with Jcap Private Lending

Potentially one of the most common hurdles that novice real estate investors encounter when they are attempting to acquire property assets is obtaining reliable mortgage financing. There are a number of potential options that new real estate investors can pursue, including conventional mortgages. The downside to these types of loans, however, is that they are often significantly challenging to get approved for as opposed to hard money loans for investment properties. Hard Money loans are usually the easiest loans to get; they are “Hard”, because they are more expensive than Fannie Mae loans.

Choosing to make your first real estate investment or substantially diversify your portfolio with numerous property types across different geographic regions can be a financially lucrative endeavor. While you have the option of investing in real estate passively via real estate crowdfunding programs or real estate investment trusts (REITs), the vast majority of experienced investors want to exercise sole ownership of their properties. This lets you keep control of your real estate investment.

If you want to control our real estate investment and don’t want the hassle of getting a real estate loan through a bank, to buy a rental or other investment property, a hard money loan is an ideal financing solution. Here’s an overview of how JCAP has earned its reputation as a trusted nationwide direct lender in the 30-year rental and short-term bridge loan space. Jcap Private Lending leverages their industry experience and proven track record of success to offer you flexible funding options through each and every stage of your real estate investment journey.

Imagine that you’ve found the perfect investment property to add to your portfolio, but don’t have the cash to close until your current property has sold or you generate more capital. Or, alternatively, youneed a loan for your renovation project. In these kind of scenarios, real estate investors turn to bridge loan financing (Hard Money) to acquire the cash they need when they need it.

Jcap Has You Covered—Every Step of the Way

As the name suggests, a bridge loan quickly fills the financial gap for your real estate purchase  or renovation project. It enables you to pull cash out from an investment property in order to pay off an existing loan or settle other debt obligations in order to free up capital to cover part of the cost of buying a new asset and entice the selling party with a fast close of escrow. Bridge loans offer several key benefits over conventional financing, including but not limited to:

  • Speed: Waiting around for a conventional loan to be underwritten and processed can cost valuable time and lead to missed opportunities—especially in today’s hot market. By contrast, Jcap bridge loans are closed in a matter of days or weeks as opposed to the several months it can take banks.
  • Prerequisites: The experts at Jcap take into account your entire story—not just the bank cursory glance ofcredit score and debt ratio. Jcapconsiders yourinvestment strategy and success in the past, other assets, the viability of your plan and payback plans.
  • No Penalties: Unlike a traditional commercial lender, we’re on your side–we want the loan to be paid off quickly. Jcap residential and commercial real estate bridge loansdo not have a prepayment penalty, with payback periods generally ranging from three  months to one year or more. Real estate investors can benefit by paying off a bridge loan early without incurring fees or other penalties.

Making the Transition

Once you’ve utilized the benefits of Jcap’s dynamic bridge loan options, it’s time to consider long-term financing. This transition always seems to give new real estate investors considerable anxiety. No need to worry, we’ve got you covered with our competitive and dynamic 30-year rental loan that can be used anywhere in the country for investments ranging from anywhere between $50,000 to $3million. And because it’s still a private money loan, all the benefits over traditional financing still apply:

  • Fast Funding
  • Less Paperwork
  • Flexible Loan Terms
  • No Hidden Fees
  • Local Lending