Bridge Loan
A loan pending the arrangement of larger or longer-term financing. It is used to bridge the gap between buying one property but using the equity from another. Typically provided by non-banking entities, these types of loans are usually for a 6 month to 1 year term. The name Bridge Loan has also become synonyms with a Private or Hard Money equity based loan. more...
Construction
A construction loan is a short-term loan used specifically to finance the building or reconstruction of a residential or commercial property. Lender guidelines typically are limited to 65% or 70% of the current value And then a portion of the expense, like 80%. Once a lender has determined the amount of the renovation budget, some lenders will charge interest on the whole amount from the beginning, and some will only charge on the draws. more...
Hard Money
A short-term loan from individuals or private companies that a accept a property with equity as collateral. The term Hard Money is often considered synonyms with Private or Bridge Loans. But loans and lenders that are referred to as Hard Money are typically focused on the asset itself, and not the credit worthiness of the borrower or cash position. more...
