Hard Money and Bridge Loans Are Perfect for Real Estate

Hard Money vs Bridge Loan


Real estate deals come in all shapes and sizes. You have residential deals involving buyers purchasing
primary residences. There are deals involving residential landlords, too. In the commercial realm, real
estate transactions can involve developers, commercial landlords, and different types of investors. All
have one thing in common: they find hard money and bridge loans are perfect for getting deals done.
Here at Actium Partners, we don’t fund loans for primary residences, house flipping, and that sort of
thing. We primarily work with real estate investors interested in commercial properties for development
or lease. Hard money and bridge loans are perfect for what they do. It is no surprise that we routinely
fund projects here in Salt Lake City, across Utah, and even around the country.
Hard Money vs. Bridge Loans
The terms ‘hard money‘ and ‘bridge loans‘ are sometimes used interchangeably with little distinction
between the two. That’s fine. From our perspective though, there are distinct differences worth noting.
A hard money loan is similar to a traditional loan in terms of function. Clients borrow based on need,
while we lend based on the value of collateral and an established loan-to-value (LTV) ratio. Hard money
loans from other lenders can offer terms ranging from 6-36 months. We prefer to keep ours in the 6-12-
month range.
Bridge loans are, by definition, a means of bridging a current need with future income. More often than
not, clients apply for bridge loans in order to access cash while they arrange for more traditional
funding. For example, a client might get a bridge loan from us to quickly close on a real estate deal. Later
on, he will apply for traditional funding that will be used to pay off the Actium loan.
Why Clients Borrow from Us
Hard money and bridge loans are perfect for real estate transactions because they can fund so many
things. A good way to fully understand this is to consider the reasons clients borrow from us. They are
many and varied, but here are just a few examples:
Quick Closing – There are times when securing a piece of property requires closing quickly.
Investors eligible for bridge loans do not have to worry so much about losing great deals
because they know they can get funding fast.
Property Rehab – Real estate investors are known to turn to hard money and bridge loans for
rehab projects. They get access to fast cash that allows them to quickly improve properties and
get them on the market, where they can start generating income.
Lending Requirements – Banks and standard private lenders often have requirements real
estate investors are either unable or unwilling to meet. Hard money lenders offer a much easier
process with fewer requirements.
Underwriting Process – Hard money lenders almost always offer simpler underwriting processes, too. That means less documentation, fewer hoops, and faster funding. Simplicity
really does make a difference.
Investing in real estate can be a tricky business. Even when it seems like all of your ducks are in a row,
unexpected circumstances can derail the best laid plans. The last thing real estate pros need is funding
hassles. That’s why so many of them turn to hard money and bridge loans.
We make hard money lending as easy and as comfortable as possible. If you are a real estate investor
looking for a new way to fund your deals, we hope you’ll consider hard money and bridge loans. Actium
Partners is here to help you reach your goals. Contact us to learn more about how we can help