Loans On Your Schedule, Not Ours

October 15, 2015

Why Having a Fixed Funding Date Matters

In our regular meetings with potential borrowers, one of the points that we like to stress is the advantage of having a fixed funding date. As we outlined in our “Bridge Loan Basics” post, one of the key advantages of private financing, aside from their flexibility, is that they provide the borrower with the comfort of having access to capital within a pre-determined time frame. This allows real estate investors and developers to focus their time and resources on what matters most to them—whether it be the taking advantage of a market opportunity to acquire an attractively-priced commercial asset or launch pre-construction of a highly coveted project.

At BridgeInvest, we understand that our borrowers come to us because they seek an alternative to traditional financing and the often onerous and time-consuming underwriting requirements that come along with it. In fact, a traditional lender, such as a bank, may require more than 90 days to fund a commercial real estate deal.  Further, these institutions do not typically provide a fixed funding date at the time of commitment.

For borrowers that can afford to wait, traditional lenders may be the best financing option. However, for the opportunistic borrower focused on closing a time-sensitive, complex real estate deal, an uncertain funding date can often be a deal breaker.

“Common Sense” vs. “Box Checking” Underwriting Process

In order to meet our borrowers’ specific financing needs, we have developed a flexible, “common-sense” underwriting process that allows us to fund on a fixed date that the borrower is comfortable with. This is different from traditional lenders who typically have a rigid, “box checking” underwriting process and may need to adjust the funding date depending on their due diligence requirements. BridgeInvest can commit to fund a loan in as little as two weeks. And we take our commitments very seriously. In fact, we have never missed a funding date.