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What does waiting for the bank cost you?

When people compare a bridge loan with a bank loan, they usually look only at the rate. But waiting has a cost too, and it is often higher.

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The costs that don’t show in the rate

  • Cutting a property’s price just to get cash.
  • Stopping a build while costs keep running.
  • Losing a purchase because the seller won’t wait for the bank.
  • Commitments that fall due before the sale closes.

How to compare

A bridge loan costs more than a bank: 12% to 15% a year, plus the origination fee and the appraisal, legal and registration costs.

Compare that with what waiting would cost you: the discount you would give to sell quickly, the cost of a stalled build or the purchase that gets away. If waiting costs less, wait for the bank. If it costs more, a bridge loan buys you time.

Problem = opportunity

For us, a problem and an opportunity are the same thing: the property you don’t want to sell short, the build you want to finish, the purchase you don’t want to lose. Our job is to give you the capital and the time to take it.

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