Bridge loans and private money loans are often confused by investors. Furthermore, if they are not clear on the difference between the two, there is the potential for a misinterpretation of which loan is ideal for their investment property.
What is a Bridge Loan?
Loans taken out for only a brief period, such as a few months or a few weeks, are referred to as a bridge loan. It provides rapid cash flow so that the user can meet current obligations. Borrowers should expect high-interest rates and short-term repayment terms of up to one year on bridge loans, which are secured by property or stock.
