We help you manage your bridge loans. Our relationship with a bridge loan originator allows you to help business projects and real estate investments come to fruition. Our services offer peace of mind and the ability to have a hands-off investment experience.
Have some money that you wish to invest and a desire for it to grow. Leverage compound interest for your benefit.
Invest your money in a Bridge Loan & help another company acquire the assets they need.
Collect your interest and re-invest, or take it to the bank. You’re in charge of what happens next!
There has never been a default from borrower to lender, meaning a failure to repay the loan. However, due to bank operations, there can be delays with regard to when one actually receives a check. For example, let’s say you have a note that matures on 04/15/2022, and you (the lender) decide to withdraw the full amount of money, and not roll any over into another note. In this case, it could take about 3 weeks for that check to be in hand, due to the 10-business day hold the escrowing bank places on matured funds. So, as you define the word default, in a strict sense, our loans do not meet that criteria, because they are paid out ~10 business days after they mature. But, people have ALWAYS received their money—there just may be a 2-3 week delay.
No. There is no opportunity to withdraw funds early. You can only withdraw funds after a bridge loan has matured, and the 10-business day hold has been released by the bank. In light of this, we advise clients NOT to invest money they believe they may need access to.
Unfortunately, we can’t provide this information, because our broker is bound by client confidentiality. We obtain very general information about the type of businesses he works with such as commercial real estate, tech start ups, someone who started an orange grove, etc. We do not have company specifics or percentage breakdowns.
No. Loan rates are always determined through our broker’s negotiating savvy. The risk stays consistent, because he will not lend to anyone who can’t procure collateral that equals six times the amount of the loan.
These rates do factor into our broker’s negotiation of loan terms to some degree, however bridge loan rates are ultimately independent of these indices. They are determined more so by a company’s urgent need for funding, and how quickly our broker can get borrowers qualified. When many of the bank lending operations were shut down or slowed down during COVID, our broker had the ability to negotiate higher rates of return for us and our clients. This was because he was able to get borrowers qualified more quickly, so his loans were more desirable than bank loans. The higher rates he negotiated had to do with greater access, not higher risk.
Our broker does request financial disclosures from businesses, such as P & L statements and such, but we’re not in the loop with regard to all the different ways in which he vets a business. After a company passes his initial criteria to qualify as a borrower, they must ALWAYS meet his requirement to secure collateral that is equal to or greater than six times the amount of the loan.
Typically, funds are rolled over the Friday after the 10-business day bank hold is released. On occasion, there can be some lag time between roll overs, if our broker is funding a jumbo loan. In this case, he may need to wait for other loans to mature, in order to have enough money to fund the larger loan. In our experience, the lag time can be somewhere in the realm of 2-4 weeks. It doesn’t happen often, but sometimes it does. We believe the trade off is worth it, since we’re permitted to participate without financial minimums.
No. We haven’t experienced any shortage of borrowers.