Competing with cash buyers? Consider a bridge loan for the win.
Over the past 18-24 months, we’ve closed dozens of bridge loans.
Many of our clients are pulling cash out of their existing homes to buy new homes. In order to compete with cash buyers, we will cross-collateralize our loan to fund enough so that the homebuyer is effectively paying cash for the new home.
This allows the buyer to close within 10-14 days (the same as a cash buyer) with no financing contingencies. This could be huge for many of your clients.
A recent client success story:
As an example of a recent transaction, our borrower owned a home in Saratoga. The home is worth $4.5M, they owe about $500k. The home they were buying was on the market for $3.9M, also in Saratoga. They did have some cash to put down but wanted to keep some as reserves and some for the improvements they want to make to the new home.
We funded a $3.8M loan secured by a first mortgage against the new home and a second against the existing home. They will do some improvements before moving into the new home. Likewise, once they’ve moved, they will do some clean-up and painting prior to staging and placing the existing home on the market.
The freedom of a bridge loan.
This bridge-loan home buying scenario provides borrowers with:
- the freedom to work within their own timeline
- the ability to compete with “all-cash” buyers
- the option to avoid jumping through the mountains of paperwork that conventional lenders require.
If you would like to close your transaction within a few days without all of the hassles conventional lenders require, please give us a chance to show you just how seamless and easy we can make this process.
Founder, VP Investment Lending
Excel Trust Deed Investments
Sheldon founded Excel Trust Deed Investments (formerly Excel Financial) in 1986. Specializing in expedited and efficient loan closings, he applies creative problem-solving skills to every facet of the private lending process for his clients.