risk of bridging finance
Maybe the biggest advantage to using bridging loans for commercial projects is that they can be closed very quickly, almost immediately. Individual property developers and corporate property developers at times need to secure a foreseen profitable opportunity. They need to have the relevant sources where they can close a deal within seven days without having to wait for thirty days like conventional lending. Sellers love it when the prospective buyer can close the deal immediately, and will almost certainly do a deal with you.
The disadvantages are:
• Risky • High interest rates and points • Short terms • Lower loan to value ratio janelkv
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