First Capital Trust Deeds secured a quick $150,000 hard money bridge loan against this free and clear rental condo in Irvine. The owners wanted to acquire another property quickly and needed down payment funds to close on the other property within two weeks.
Over the past few years, we’ve seen dozens of hard money bridge loan situations similar to this one where the owner of the property needs access to the “trapped equity” in the property. They want this in order to capitalize on a great opportunity to pick up another discounted property to flip within a week or two. Active real estate investors who both flip houses and have a few buy/hold rentals seem to always be re-balancing debt against the equity in their rentals by using hard money financing. Often times, they’ll have a rental that’s owned outright, or close to outright, and will borrow against it for the 25-40% down payment funds on a fix and flip property, which will also be leveraged with a hard money loan.
Once they flip the new property, they will pay off the hard money bridge loan against their rental property, making it completely unencumbered. Real estate investors do this all the time.
12-Month Hard Money Bridge Loan Terms:
- $150,000 Loan Amount
- 11.00% Interest Only
- $1,375/Month Payment
- 12-Month Term
- No Prepayment Penalty