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What is a Colorado Bridge Loan?

  The premise of a “bridge loan” is to bridge the financing gap for a borrower. These are typically short-term loans anywhere from six months to
five years. The idea behind a bridge loan is to provide financing for a borrower to take advantage of time sensitive situations.  A bridge loan is comparable to a cash transaction so borrowers are able to use time to their advantage

 6 reasons borrowers use a Colorado Bridge Loan

  1.  Property/Borrower not “plain vanilla” meaning that the borrower doesn’t feet the very narrow box of conventional lenders
  2.  Credit issues: there are various items that can impact credit, a bridge loan focuses on the property as opposed to just the borrower’s credit
  3. Timing:  Traditional lenders take months to close, a bridge lender like Fairview, can close a loan in as little as 5 days
  4.  Under performing asset:  A property might be an owner occupied commercial property or a residential property that is not operating to its potential, a bridge lender can see the value in the property
  5.  Discounts:  many times if someone can close quickly with a bridge loan they can get a property for less on a purchase or many times, depending on the situation, existing lenders might provide discounts to get paid off quickly if there are issues on an existing loan/property
  6.  Cheaper than borrowing money other ways: A bridge loan is substantially cheaper than other financing methods from credit cards, to unsecured loans, to bringing in partners.

Fairview is recognized as the leader in Bridge Loans both in Denver and throughout Colorado.

There are many misnomers about bridge loans both in Denver and throughout Colorado. Below are frequent questions I have received about bridge loans:

  • What is a bridge loan?
  • When is a bridge loan used?
  • Why would someone need a bridge loan?
  • What should I know about bridge lenders?
  • What is needed to get a bridge loan?
  • Who are the Bridge Lenders in Colorado?
  • Are there local bridge lenders in Denver?
  • How can I trust a bridge lender?
  • What should I expect from a bridge lender?

The questions above along with many other questions about bridge loans are answered in a recent article that was written by Glen Weinberg (the COO of Fairview Lending) for the Colorado Real Estate Journal. Glen is widely known throughout Denver and Colorado as an expert on bridge loans and non-conventional financing including private lending and hard money lending. Below is an excerpt of the article on Colorado Bridge Lending along with a link to the full article. Colorado Bridge Lenders: what borrowers/brokers need to know.

As banks continue the strict underwriting guidelines put in place during the recession, many loans are falling out of these guidelines. If one has a non-bankable loan as a result of either the property or the borrower there are options available. One option available is a product called a bridge loan. The premise of a “bridge loan” is to bridge the financing gap for a borrower. These are typically short term loans anywhere from 6 months to 3 years. The idea behind a bridge loan is to provide financing for a borrower to allow time to get into a more conventional product or in some cases buy the borrower time to sell the property. Bridge loans have increased in popularity as the downturn in the economy has created many more unique situations for borrowers including credit issues, tenant issues, etc… Click to continue reading the full article on Bridge loans.

There are many circumstances when a bridge loan is appropriate. Below are the top six reasons Fairview Commercial Lending has seen bridge loans utilized.

Resources on bridge lending in Denver and throughout Colorado

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