Short Term
Real Estate Loan
When real estate opportunities arise, timing is everything. Whether you’re looking to purchase a property quickly, finance a renovation, or bridge a gap in funding, short-term real estate loans provide the fast, flexible financing you need to seize those opportunities. We specialize in a range of short-term financing solutions tailored to real estate investors and developers.
What is a Short-Term Real Estate Loan?
Short-term real estate loans are designed to provide quick access to capital, typically for periods ranging from a few months to a few years. These loans are ideal for real estate investors who need to close deals quickly, complete renovations, or bridge financing while waiting for longer-term funding options. With shorter loan terms and more flexible approval criteria, they offer the speed and flexibility that traditional mortgages may not.
When to Consider a Short-Term Real Estate Loan
Short-term real estate loans are ideal for:
- Fix-and-Flip Projects: Purchase, renovate, and resell a property within a short time frame.
- Bridge Financing: Secure funding for a property purchase while waiting for long-term financing to close or sell another property.
- Auction Purchases: Quick access to capital is essential when purchasing properties at auction.
- New Construction: Finance the construction phase of a development before transitioning to long-term financing upon completion.
- Property Improvements: Fund renovations or repairs on an investment property to increase value before refinancing or selling.
<Types of Short-Term Real Estate Loans>
1. Bridge Loans
Bridge loans are short-term financing options that allow you to “bridge” the gap between purchasing a property and securing permanent financing or selling another property.
- Loan Term: Typically 6 to 60 months
- Quick Funding: Fast approval and funding, ideal for time-sensitive purchases
- Interest Rates: Higher than traditional loans, but provide quick access to capital
- Use Case: Purchasing property while waiting for long-term financing or sale of another asset
2. Hard Money Loans
Hard money loans are asset-based loans primarily used by real estate investors for short-term projects, such as fix-and-flip investments. These loans are based on the property’s value rather than the borrower’s credit score.
- Loan Term: Typically 6 to 18 months
- Fast Approval: Quick underwriting and disbursement of funds
- Flexible Credit Requirements: Approval is based on the property’s value
- Use Case: Renovations and quick resale of properties for profit
3. Fix-and-Flip Loans
Fix-and-flip loans are specifically designed for investors who plan to buy, renovate, and resell a property in a short period. These loans provide the funding needed to purchase and renovate the property, often with fast approval times.
- Loan Term: Typically 6 to 12 months
- Fast Access to Capital: Quick funding for both the purchase and renovation
- Interest Rates: Higher due to the short-term nature of the loan
- Use Case: Investors looking to buy, fix, and resell properties for a profit
4. Construction Loans
For developers building new properties, short-term construction loans provide the funding necessary to complete the construction phase before transitioning to long-term financing. These loans cover the cost of building materials, labor, and other expenses during the construction process.
- Loan Term: Typically 12 to 36 months
- Flexible Draw Schedules: Funds are released in stages as construction milestones are met
- Use Case: Residential or commercial property developments