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If you want to get to the other side of something with an obstacle in between, you need a bridge to get there.  Bridge loans function in a similar way as physical bridges do.  Here is a real property which you are interested in and the owner needs quick cash to dispose of it.  A quick loan or money that can bridge that need is what you need so that you can purchase the property.  The bridge loan then is the means by which you can get to the other side - to purchase the property.

Bridges are meant to help us cross the distance as fast as possible.  Knowing where you are going and deciding on you exit strategy is definite when one uses a bridge.  It just illustrates that hard money financing is the bridge between you and the property you wish to purchase.

Think of it as a way of getting a property that is almost getting foreclosed but the home owner will sell it if you offer quick cash.  You can actually purchase the property if you can get financing.  It will take around two or three months to get money from a bank loan or traditional lender application and besides, there are still many documents that you need to submit. For more details about loans, visit http://www.encyclopedia.com/topic/loan.aspx.

Losing this deal is very possible in that long period of time because the owner needs quick cash.  To get immediate loan, your best option is hard money bridge loan because in a few days it can be released, and it is a short term loan.  You need to have an exit strategy when you would be able to return the loan.  It is important that you get hard money with a good equity position, meaning that you loan application is based upon good collateral.

Bridge loans are also easy because even if you have a poor credit history or even if you have recently lost your job, it will not affect the loan.  The only requirement is to have good equity.  The lenders will send independent evaluators and when they are able to give a good report the bridge lenders will give you the funds.  Payment for the loans are to be done after six months maximum. Click here to understand more about loans.

You need to understand that Hard Money Financing is equity driven and they lend based upon the property and nothing else.  So if you have a clear cut exit strategy and need short term financing, then hard money bridge loans is for you.  You may think that bank loans of traditional lenders can help you finance these properties but since it takes time to receive the money off these loans, you can lose of your deal with it.

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