It’s a big world out there when it comes to real estate investment opportunities. Especially in growing cities like Dallas, Texas, where you need to be on the ball when it comes to land acquisition for commercial real estate ventures. If you’re not ready with the funds when it’s time to move forward, you could lose out on a valuable opportunity.

The good news is that private money lenders for real estate like RoseRock Capital Fund are available with short term bridge loans and other hard money loan options so that when it comes time for you to make a land purchase or other commercial real estate venture, you’ll be ready.

Private money lenders like RoseRock Capital Fund are the best option for commercial real estate ventures for multiple reasons:

• Unlike traditional bank financing, direct private lenders offer short term loans that are generally available much quicker than if you worked with a traditional lender such as a bank.
• Private lenders offer more loan flexibility to fit your unique financial situation.
• Direct lenders can provide private lending options like a land bridge loan that is specifically tailored to commercial real estate financing solutions.

What is a Bridge Loan?

If you’re in need of funds quickly to finance or finish a commercial real estate project, a bridge loan “bridges” the gap until a more long-term financial solution is available. For example, if you’re looking to purchase a development property, and have secure entitlements for the development, but need fast capital to make the purchase happen, a bridge loan can be the funding solution you need.

What is the Average Length of a Bridge Loan?

As it says in the name, bridge loans are a stop-gap measure meant as a short-term financing solution until more permanent funds can be secured. While each loan, lender, and project are unique, most bridge loans are typically one month to a year in length.

This can be considered both a pro and a con. A commercial real estate short-term loan could be exactly what’s needed to make your project happen. However, it’s crucial that you have a full understanding of the loan’s terms and don’t get in over your head when it comes to paying it off in a small amount of time.

Working with an experienced and trusted direct private lender in Texas makes a big difference because your lender will work directly with you to help ensure the project stays on task and the loan is paid on time.

Pros of Bridge Loans

Bridge loans are known for their quick approval and funding timelines. This is ideal when you need to move fast on a property or project before someone else grabs the opportunity.

A big pro of working with a direct private lender to acquire a bridge loan for your commercial real estate project is that you can close on an opportunity in the short-term, in instances where the project is not ready for long-term financing.

Having additional lenders at your disposal who can offer short-term solutions will allow you to build lasting partnerships with these groups and expand the number of commercial real estate opportunities you can pursue.

You may start with a bridge loan to get the project off the ground and then move to a longer-term loan through a more traditional lender. In doing so you’re building a trusted financial partnership with multiple organizations.

Cons of Bridge Loans

One potential con that should be mentioned is that sometimes bridge loans can be "riskier" because of a shorter time window to pay the loan back. However, when working with an experienced direct private lender, the risks are minimized because reputable commercial real estate private lenders aren’t likely to take on a loan that is high risk.

Direct lenders such as RoseRock Capital Fund work directly with their clients in a partnership relationship that helps provide guidance and resources to help ensure the project is a success and benefits both parties.

While it can be difficult to know what type of loan you need for your commercial real estate venture, a bridge loan through a trusted hard money lender in Texas might be exactly what you need to turn your business ideas into reality.