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Hard Money loans
by Strategy
Hard money loans are popular among real estate investors for their speed and flexibility. Unlike traditional bank loans that can take weeks or even months to process, hard money loans are designed for quick turnaround times. At BridgeWise Lending, the process can often be completed in as little as 5 to 10 days.
Fix & Flip
Key Features of BridgeWise Lending Fix and Flip Loans
Rates as low as 8.25% – Competitive interest rates to maximize your returns.
Loans from $100K to $3MM – Flexible loan amounts to suit projects of any size.
to 95% of Purchase Price – High leverage so you can invest with less out-of-pocket capital.
Up to 80% of After-Repair Value (ARV) – Finance the project and realize post-renovation value.
100% of Rehab Costs Covered – We fund the full renovation, freeing up your cash flow.
12, 18, and 24 Month Terms – Choose flexible loan terms tailored to your project timeline.
Interest-Only Payment Options – Keep monthly payments low during renovations for better cash flow management
New Construction
For developers or investors looking to build new properties, new construction loans provide up to 85% of total project costs, from purchase to construction. They offer flexibility with 24-month terms and extensions, allowing you the time to complete your project and realize its potential. These loans are tailored for high-return projects, giving you the financing you need to build from the ground up.
BRRRR
The "Buy, Renovate, Refinance, Repeat" (BRRR) strategy is a real estate investment approach that involves a cyclical process of acquiring, improving, and refinancing properties to build a rental portfolio. Here's a step-by-step explanation of each phase:
1. Buy: Identify and purchase a property that has the potential for improvement and increased value. Consider factors such as location, market trends, and potential return on investment. Secure financing for the purchase, often with the intention of obtaining a short-term loan with favorable terms for the renovation phase.
2. Renovate: Once the property is acquired, initiate necessary renovations and improvements. Focus on upgrades that add value to the property, increase its appeal, and potentially raise its market value. Budget carefully to ensure that renovation costs are manageable and aligned with the property's future rental income potential. Work with contractors and professionals to execute the renovation plan efficiently.
3. Refinance: After completing the renovations and enhancing the property's value, refinance the property with a new mortgage. The new mortgage amount should ideally cover the initial purchase cost and renovation expenses. Take advantage of the increased property value to secure a more favorable loan-to-value ratio and potentially lower interest rates. The refinancing provides access to the equity created through the improvements.
4. Repeat: With the property refinanced, the investor now has access to funds that can be used for the next real estate investment. Reinvest the released equity into the acquisition of another property and repeat the process.
Continuously cycle through the BRRR strategy to build a portfolio of income-generating rental properties.
Each repetition of the cycle contributes to expanding the investor's real estate portfolio while optimizing financial resources.
Key Considerations: Thoroughly research and analyze the market to identify properties with potential for value appreciation. Develop a realistic budget for renovations and closely monitor costs to ensure profitability. Build relationships with reliable contractors and professionals to streamline the renovation process. Work with lenders who understand the BRRR strategy and offer flexible financing options.
Stay informed about local real estate trends and regulations that may impact the success of the BRRR strategy.
The BRRR strategy is a dynamic and iterative approach that allows real estate investors to leverage their capital efficiently, create equity, and gradually expand their rental property portfolios. Success in the BRRR strategy requires a combination of careful planning, market knowledge, and effective execution.
Buy and Hold
It's crucial to emphasize that DSCR loans are far from the loosely originated loans of the past.
They follow strict underwriting standards, limiting loan-to-value ratios and ensuring conservative evaluations of rental performance. Furthermore, DSCR loans typically offer fixed-rate, 30-year mortgages, avoiding the complexities of exotic loan structures.Now, let's explore the documentation requirements for DSCR loans:
Application: BridgeWise Lending provides a streamlined application tailored for DSCR loans, focusing on essential information like property details and financial profiles.
Credit Authorization: Borrowers authorize credit reports, crucial for assessing their financial history and real estate debt.
Bank Statements: Typically, two months of bank statements are required to demonstrate minimal liquid assets, ensuring stability in debt service payments.
Property Insurance: BridgeWise Lending mandates adequate insurance coverage against property damage or destruction, protecting both the borrower and the lender.
Leases: For leased properties, copies of leases must be provided, ensuring clarity on rental terms and income.
Short-Term Rental History: For properties used as short-term rentals, recent booking records are necessary, showcasing income stability.
Entity Documents: If borrowing through an LLC, specific entity documents are required, ensuring compliance with legal structures.Renovation Documentation: For properties undergoing renovations, detailed documentation of the work is necessary, including receipts and invoices.
While additional documents like appraisals and title insurance are handled by BridgeWise Lending, the overall documentation process for DSCR loans remains reasonable and straightforward.
This ensures thorough underwriting without overwhelming borrowers with paperwork, making DSCR loans an attractive option for investors seeking financial growth through real estate.