Short-term Funding for Commercial Real Estate Investing

One of the major economic imperatives that commercial real estate buyers face is how to fund a new property while waiting for a pending sale. A10 Capital provides primary interim loans for commercial real estate transactions. They enable buyers to produce temporary cash flow to “bridge” the gap between funding.

Lack of funding can affect the entire commercial real estate process, making it difficult for buyers to close deals without obtaining intermediate loans. In looking at the at A10 comprehensive assets, they can supply financing, because of their streamlined liabilities. This means that the company is able to provide funding for commercial real estate purchases, because they have secure assets that offset the number of liabilities.

Bridge loan financing is available for all phases of commercial real estate, including the developmental phase for new construction. When waiting for a building permit, the developer cannot begin work, so they worry about what will happen to project if they cannot secure funding without subsidy. A10 is able to move the project to completion, funding is based on the appraised value of the completed property. Thus allowing the developer to complete construction, developers are usually satisfied with how this works. Because the short-term loan allows them to finish a project that is on the verge of being built, the property becomes the collateral, the earmark funding repositions the assets to help the developer get through the integration phase.

A10 strives to meet the needs of a fast paced and fluid commercial real estate market. Borrowers who need temporary funding for small to mid-size properties are connected to real solutions, and they can receive an infusion of cash to offset the period of waiting for properties that are not yet stable. Upon sale of the asset, the “due on sale provision” is in effect and the borrower agrees to make payments or pay the loan off in one lump sum payment as per the written terms of the agreement.

Bridge loans (http://www.a10capital.com/lending/bridge-loans) helps qualified commercial real estate buyers, they provide an opportunity to obtain temporary funds, based on actionable financial insight. The borrower must agree to the terms of the loan, confirming that they have a defined interest in the property; ideally, they have a sizable amount of equity that exceeds the value of the bridge loan. In short, while the effects of the economic recovery slowly trickled down, bridge financing can leverage commercial real estate purchases in highly effective and measurable ways.

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