Have short-term liquidity needs? GMG Bridging Loans can help

Bridging Loans

Globally, but especially in the main overseas investor markets like the U.S., UK, Canada, and Australia, the housing market has seen intense competition, massive price surges, and dwindling inventory since 2020 – but if you’re a real estate investor, all of that may be about to change, and for the better. 

Using the U.S. as a reference, mortgage rates are rising. In mid-June of 2022, the 30-year fixed-rate mortgage averaged 5.81%. That may seem high; however, rates now are where they were right after the financial crisis of 2008 when many people were actively trying to obtain a mortgage. 

What makes this type of market great for real estate investors?

These higher rates make it more difficult for would-be home buyers to afford new homes. It’s not that people are trying to buy extravagant houses, but that a modest home with an increase of $50 a month in mortgage payments could be the difference between buying or renting. 

These higher costs are putting pressure on the housing market. It has already led to a decrease in mortgage applications to purchase and refinance for owner-occupied property, but an increase in investor mortgage applications getting in on high rental prices, demand, and lack of available rentals.

What once was a seller’s market is shifting slightly, causing properties to stay on the market longer. This has resulted in liquidity issues for investors looking to sell their properties quickly to buy additional properties.

Luckily, there is a relatively simple and easy financing solution – GMG bridge loans.

What is a Bridging Loan?

Investors use real estate bridge loans as a short-term financing tool to bridge gaps in financing. For example, an investor might take out a bridge loan against a property they are selling in order to purchase or act on another investment property immediately. 

In this case, the homeowner may need the money before their property sells. They can now use a GMG Bridge loan to extract equity today while waiting for the right price to sell.

Bridge loans can be secured quickly, often closing within a week to 10 days, and with little paperwork, because lenders are more interested in the collateral (i.e., a house) than a credit score or cash flow.

We offer Bridging Loans in: USA, UK, Canada, Australia, Singapore, Hong Kong, and Thailand.

How to use Bridging Loans to free up liquidity

Bridge loans allow investors to quickly free up liquidity using their real estate assets as collateral. This is a quick asset-backed mortgage where your financials or credit are not the primary underwriting criteria; the asset is. In order to better understand how this works, let’s take a look at two examples;

1. Waiting for a property to sell at the right price:

You’re selling a property but waiting for the right price. Another investment property becomes available that is too good to pass up, but you won’t have the available funds until after you sell the existing property. No problem. Extract the equity from the property you’re selling. Take advantage of the new investment. Wait for your property to sell and pay off the bridge. It’s that easy and quick! 

2. Financial strain:

Often, unpredictable circumstances can impact our financial position. The equity in your property can be the perfect way to ride out the storm without worrying if you’ll qualify for a “conventional” mortgage loan. It is easy, quick, and straightforward to release up to 70% equity from your property based on the asset value alone. We can also structure these loans to where you do not have to make any monthly debt servicing for up to 12 months. This allows you to get the liquidity you need and then relax, reset and focus on your situation at hand. 

When do Bridging Loans benefit investors?

As explained above, bridge loans are a great way to free up liquidity. A bridge loan may also be a good fit for you if you:

  • Need to free up liquidity in a fast-moving market
  • Can’t afford to take out a mortgage on a new property without selling your other property.
  • Need to secure funds to acquire or renovate real estate quickly.
  • Already purchased a property, but you can’t sell your current property quickly enough.
  • Financial strain where conventional financing won’t work or is difficult to obtain. 

The housing market is evolving rapidly. Investors would be wise to understand their options so that they are able to adapt, take advantage of opportunities, and free up liquidity when they need it. 

As a company, we only focus on non-resident mortgages for major international real estate investor markets: USA, UK, Canada, Australia, Singapore, Hong Kong, and Thailand.

In the U.S., our wholly-owned subsidiary, America Mortgages, is the only U.S. mortgage specialist outside the U.S.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions at hello@gmg.asia.

www.gmg.asia

Liquidity Issues? AM Bridge Loans to the Rescue!

Bridge Loans

The housing market has seen intense competition, massive price surges, and dwindling inventory since 2020 – But if you’re a real estate investor, all of that may be about to change, and for the better. 

Mortgage rates are rising. In mid-June of 2022, the 30-year fixed-rate mortgage averaged 5.81%. That may seem high; however, rates now are where they were right after the financial crisis of 2008, when many people were actively trying to obtain a mortgage. 

What makes this type of market great for real estate investors? These higher rates make it more difficult for would-be home buyers to afford new homes. It’s not that people are trying to buy extravagant houses, but that a modest home with an increase of $50 a month in mortgage payments could be the difference between buying or renting. 

These higher costs are putting pressure on the housing market. It has already led to a decrease in mortgage applications to purchase and refinance for owner-occupied property, but an increase in investor mortgage applications getting in on high rental prices, demand, and lack of available rentals. What once was a seller’s market is shifting slightly, causing properties to stay on the market longer. For some, this has resulted in a liquidity issue for investors looking to sell their properties quickly to buy additional properties.

Luckily, there is a relatively simple and easy financing solution – AM bridge loans

What is a Bridge Loan?

Investors use real estate bridge loans as a short-term financing tool to bridge gaps in financing. For example, an investor might take out a bridge loan against a property they are selling in order to purchase or act on another investment property immediately. 

In this case, the homeowner may need the money before their property sells. They can now use an AM Bridge loan to extract equity today while waiting for the right price to sell.

Bridge loans can be secured quickly, often closing within a week to 10 days, and with little paperwork, because lenders are more interested in the collateral (i.e., a house) than a credit score or cash flow.

How to Use Bridge Loans to Free up Liquidity

Bridge loans allow investors to quickly free up liquidity using their real estate assets as collateral. This is a quick asset-backed mortgage where your financials or credit are not the primary underwriting criteria; the asset is. In order to better understand how this works, let’s take a look at two examples;

1. Waiting for a property to sell at the right price:

You’re selling a property but waiting for the right price. Another investment property becomes available that is too good to pass up, but you won’t have the available funds until after you sell the existing property. No problem. Extract the equity from the property you’re selling. Take advantage of the new investment. Wait for your property to sell and pay off the bridge. It’s that easy and quick! 

2. Financial strain:

Often, unpredictable circumstances can impact our financial position. The equity in your property can be the perfect way to ride out the storm without worrying if you’ll qualify for a “conventional” mortgage loan. It is easy, quick, and straightforward to release up to 70% equity from your property based on the asset value alone. We can also structure these loans to where you do not have to make any monthly debt servicing for up to 12 months. This allows you to get the liquidity you need and then relax, reset and focus on your situation at hand. 

When do Bridge Loans Benefit Investors?

As explained above, bridge loans are a great way to free up liquidity. A bridge loan may also be a good fit for you if you:

  • Need to free up liquidity in a fast-moving market
  • Can’t afford to take out a mortgage on a new property without selling your other property
  • Need to secure funds to acquire or renovate real estate quickly
  • Already purchased a property, but you can’t sell your current property quickly enough
  • Financial strain where conventional financing won’t work or is difficult to obtain

The housing market is evolving rapidly. Investors would be wise to understand their options so that they are able to adapt, take advantage of opportunities, and free up liquidity when they need it. 

As a company, our only focus is providing U.S. market-rate mortgages for Foreign national and U.S. expat investors. Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions hello@americamortgages.com.

www.americamortgages.com

Taking the “Pain” out of High Net Worth mortgages for U.S. Real Estate, without AUM requirements.

U.S. Real Estate

With inexpensive funding and various tax advantages, everyone should take advantage of the benefits of a mortgage when investing in U.S. real estate regardless of the loan size. However, why do the wealthy often find it increasingly difficult to obtain mortgage financing without AUM?

With a portfolio of assets worth millions of dollars, one may assume that securing credit would be a straightforward task for a high net worth (HNW) individual. Unfortunately, the reality can be quite different especially if you’re a foreign national or U.S. Expat.

The unique nature of a HNW’s wealth – their income, investments, and liquidity – puts this group of people at a surprisingly high risk of being turned away by conventional banks unless they are willing to deposit a significant amount of funds for the bank to manage. This is certainly true in the mortgage market, and what’s more, it is an issue that has become more prevalent post-Covid.

American Mortgages has a dedicated HNW Team that focuses on mortgage solutions for foreign nationals and U.S. expatriate clients.

“As a company, our focus is finding solutions that go beyond what Private Banks can offer was the cornerstone of why this has been so successful. Our goal is to be a viable solutions provider and a trusted partner for the private banks and their clients. None of our loans require AUM, hence there are no funds taken away from their current investments or portfolio.” – Robert Chadwick, co-founder of Global Mortgage Group and America Mortgages.

America Mortgages HNW mortgage loans have a multitude of options when it comes to qualifying for a large mortgage loans regardless of the passport you hold.

1. Asset Depletion – a surprisingly simple way to establish your income. AM Liquid Portfolio uses a unique view on “asset depletion” to qualify HNW clients using their investment portfolio without an encumbrance or pledge of assets. Essentially, all of your assets are entered into a calculation, and a final number is churned out. The final number is then used as the income to qualify. In most cases, as long as the income is sufficient, no other person’s income documentation is required. This makes an often complicated and tedious process simple, transparent, and painless.

2. Debt Service Coverage – When it comes to HNW borrowers, one of the most overlooked and misunderstood loan programs is debt service coverage. HNW borrowers tend to own multiple properties in various asset classes. If the property is used as a rental, then there may not be any requirement to go through the tedious process of providing and verifying personal income. Again, as HNW borrowers tend to have very complicated tax returns, this is a straightforward way to show the borrower’s debt serviceability.

Debt service coverage ratio– or DSCR – is a metric that measures the borrower’s ability to service or repay the annual debt service compared to the amount of net operating income (NOI) the property generates. DSCR indicates whether a property is generating enough income to pay the mortgage. For real estate investors, lenders use the debt service coverage ratio as a measurement to determine the maximum loan amount.

3. Bridge/Asset Based Lending – With Covid still in play, it’s not uncommon for investors to experience a temporary liquidity event. Rather than selling their property, they are using their real estate to release equity. Asset-based lending is an option for both residential (non-owner-occupied) and commercial properties.

Simply stated, HNW bridge loans are used for residential and commercial investment property when more traditional institutional financing sources may not be available. Due to temporary liquidity, many borrowers have capital needs that traditional sources often can’t meet. For example, a borrower purchases property out of bankruptcy or foreclosure and needs to close quickly “same as cash” before long term financing can be arrange.

4. Simplified Income – HNW borrowers often have personal and business tax returns, which are complicated. The complexity of these returns often turns into an administrative nightmare for the borrower when dealing with a mortgage lender. What makes America Mortgages unique is the fact that 100% of our clients are living and working outside of the U.S. We are dealing with HNW clients from Shanghai to Sydney. Simply put, translations and understanding tax codes, deductions, net income, etc., is painful.

America Mortgages HNW Simplified Income documentation is just that. We do not require years or, in some cases, decades of tax returns, P&L, A&L, bank statements, etc. We take an often complicated process and simplify it; 1. If you’re self-employed, we will request a letter from your accountant stating the last two years’ income and current YTD. 2. If you’re employed, then a letter from your employer on company letterhead stating your last two years’ income and current YTD is sufficient. Yes, it’s that simple and painless.

As 100% of our clients are either Foreign Nationals or U.S. Expats, we understand the intricacies and complexities of this type of lending for our borrowers. It’s as simple as that. Our HNW loan programs are structured to meet our client’s requirements. Providing competitive pricing with the assurance that your loan will close is our only focus, and no one does it better.

hello@americamortgages.com

www.americamortgages.com

 

AM Bridge Loans – The Swiss Army Knife of Financing Solutions

bridge loans

In this edition of the Launchpad Series – we introduce the most widely-used tool for property investors at the moment, A Bridge Loan – often considered the “Swiss Army Knife” of financing solutions.

What are bridge loans?

A bridge loan is a type of asset-based, short-term loan, typically taken out for a few months to a couple of years pending the arrangement of longer-term financing or an exit, such as the sale. It is used to ‘bridge’ the gap during times when financing is critical but not readily available.

Bridge loans let homebuyers take out a mortgage against their current home to make the down payment on their new home. A bridge loan may also be a suitable choice for you if you want to purchase a new home before your current house has sold. This financing structure may also be beneficial to businesses that need to cover operating costs while waiting for long-term funding.

Introducing AM Bridge!

AM Bridge – A liquidity tool once reserved for the wealthy is now available for everyone!

Real Estate investors are often asset rich but cash poor. On paper, their net worth may be significant, but their wealth can be tied up in real estate or other businesses. Accessing such funds might mean sacrificing a stake in their business or surrendering some influence over its future – neither of which may be appealing.

It is not always the case that a real estate investor has a few hundred thousand dollars just sitting in the bank readily available to fund a property immediately. Even if they do, they may not wish to tie all their cash upon one property. In today’s market, the property that investors want could be in high demand and needs to be acted on quickly; these could be higher-yielding investments that need immediate funding. Having access to large sums of cash quickly and easily is what HNW investors have had at their disposal for decades. America Mortgages has now made this powerful liquidity tool available to everyone.

How is it used?

Here are some popular uses of “Bridging” Loans:

– Filling the contingency sale of an old property before you can purchase the new property. You can take a Bridge Loan and use your old house as collateral for the loan. The proceeds can then be used to pay a down payment for the new house and cover the costs of the loan. In most cases, the lender will offer a bridge loan worth approximately 80% of both houses’ combined value.

– To purchase based on the asset value of the new build so the borrower can meet the final payment before delivery.

– For the initial purchase until entitlement or for refinancing after a cash purchase until entitlement.

– To purchase greenfield land to begin commercial development. Once certain stages of development have been completed, it’s easier to obtain traditional bank financing.

– Cash-out Bridge Loan for short term personal or business use.

The Market

The pandemic has created a boom in the bridge loan market in several ways.

Firstly, it has created an economic environment filled with uncertainties, and as a result, more businesses need capital as soon as possible and can’t afford to wait for a traditional loan. They will thus turn to bridge loans.

Secondly, with the threat of the Delta variant and the increased number of companies delaying return-to-office plans, many are looking for new homes in more spacious areas. However, with how hot the property market is – data from Zillow show that houses are currently on the market for an average of 6 days only. Hence, it is critical for buyers to purchase their house as soon as possible to avoid disappointment. But, they may not have sold their old house yet and do not have enough money for this new house, which is why a bridge loan would be extra helpful.

Thirdly, there has been an accelerated trend of people migrating to Sunbelt cities due to greater job opportunities. This has driven up rents in these cities – the Phoenix area had the biggest rent increase in July, up 17% from a year ago. Due to the profitability of the rental trade, more developers and businesses are looking to acquire multifamily rental units. Short-term commercial bridge loans will provide them with the needed flexibility to take on such assets while they look for permanent financing options. This will help businesses get their assets to perform at maximum potential.

The Problem

When an American Mortgage bridge loan specialist gets a request for short term financing, they ask three things;

1. Where is the asset?

2. What is the value and the outstanding debt?

3. What situation are you trying to solve?

Number 3 is the most crucial and often the hardest to rationalize. Even the wealthiest people have used short-term bridge financing to access liquidity even when “conventional” options are still possible. This is mainly due to the time and effort required to obtain long-term financing. Cash-flow, credit issues, or asset use may prohibit a “conventional” bank loan. When time is a factor in a transaction, it is important to see the opportunity cost in not closing quickly or obtaining a simplified equity release.

Our Solution

Typically, the timeline for traditional bank loan processing from origination to closing is longer than most borrowers prefer for a time-sensitive funding solution or if the project lacks sufficient stable cash flow. The short-term nature of bridge loans generally allows alternative lenders to provide an approval decision and funding with greater speed than a more traditional lender. At America Mortgages, we’ve funded loans in as little as a couple of days since the initial contact.

To allow for such a speedy funding process, the sponsor’s expected property value and experience to execute the business plan are the determining factors in the decision-making process. For this reason, the loans are commonly non-recourse, which is another benefit to the borrower.

Bridge loans are often the preferred funding option for uses such as:

– Highly structured transactions

– Discounted note payoffs

– Lease-up stabilization

– Redevelopment of existing properties

– Repositioning of a tired or underperforming asset

– Property acquisitions with a short closing timeline (or challenges on the property or sponsor)

– Recapitalizations/Debt Restructuring or Partner Buyouts

– Other uses on a case-by-case basis depending on borrowers specific funding needs, where traditional funding sources like banks or insurance companies will have a hard time approving such loan requests.

– Lending to foreign nationals with a “same-as-cash” basis

Short-Term vs Long-Term

Unlike short-term financing, longer-term financing is susceptible to the regulatory hurdles associated with securing long-term fixed-rate mortgages. This is why bridge loans are often provided by unregulated lenders, family offices, or in some cases, HNW investors. In addition to the regulatory scrutiny, banks or insurance companies require, the sponsor’s credit history and financial strength also take a front seat in the credit decision for long-term loans. Keep in mind, America Mortgages will never work with “lend-to-own” investors and lenders. Our goal is to find you a solution that works with your situation with a long-term solution and exit from the bridge loan.

While bridge loans are the preferred option for many specific financing needs, several downsides come with short-term financing that is meant to fund projects. When assets need work, lenders will consider these higher risks and, therefore, charge higher interest rates.

Additionally, bridge lenders generally do not exceed 70%-85% of the property cost basis to limit their financial exposure. However, this leverage is higher than traditional lenders would advance for the same project. This is because bridge lenders rely on the sponsor to fix the issues, which made the property ineligible for long-term financing in the first place. This enables the asset to become stabilized and ready for exit through a sale or by refinancing the property through traditional channels.

There’s no denying a bridge loan can be convenient if you’re prepared for a change but don’t want to risk a contingent offer. A bridge loan can also be an excellent way to finance a new house if you need to relocate for a job. For more information on AM Bridge, please connect with us via email at hello@americamortgages.com

www.americamortgages.com

What is a Bridge Loan?

Commercial Bridge Loan Lenders

What is a Bridge Loan?

A bridge loan is a type of asset-based, short-term loan, typically taken out for a period of a few months to a couple of years pending the arrangement of longer-term financing or an exit such as the sale. It is usually called an asset-based bridge loan in the U.S, a bridging loan in the United Kingdom, or a “caveat loan,” or a swing loan.

What are the benefits of a bridge loan?

Let’s say you’re selling your house and need money to buy another house, but you’re short. In this case, a bridge loan can take care of the financing issue that emerges before your current home sells. Bridge loans fill the gap where traditional lenders cannot provide the speed of funding and flexibility of terms required by the borrower. It is used when financing is fundamental, and a favourable rate is not accessible – think of them as a form of secured debt upheld by collateral.

In addition, bridge loans fund faster than bank loans. Good opportunities don’t last long, which is why using a loan with fewer requirements that closes quickly is an excellent choice. It allows investors to grab a fleeting opportunity before someone else snatches it up.

How can you use a bridge loan?

1. Purchase transactions

In residential real estate, bridge loans are used to rapidly close on a deal before a long-term loan or mortgage with a lower financing cost is acquired. When a homebuyer wants to buy a new property before selling their previous home, a bridge loan can be used to pay off the old mortgage and purchase the new home.

2. Liquidity

Let’s imagine a scenario. Like many of our clients today, Covid has impacted your business and you need capital now. You’ve applied for a loan with your bank, but the lender tells you that it could be weeks before you get your funds or you may not qualify based on current cash flow. You don’t want to play the waiting game. Anything can happen in the time it takes for a “standard” mortgage to be approved and disbursed.

On the other hand, if you own real estate you could use a bridge loan and receive funding with a much shorter turnaround — even as quickly as a week depending on the complexity, location, LTV, and structure.

3. Flexibility

Bridge loans can give you the flexibility you need to buy your dream home in a competitive market. At America Mortgages, we provide U.S. short-term “bridging” loans for overseas borrowers and are certain to find you the right mortgage.

Often America Mortgages Bridge financing is a cheaper alternative to the standard hard money or private lending options, while just as flexible underwriting and fast with the turn around to fund.

America Mortgages provides bridge loan financing for companies, developers, and individuals on a global scale. These interim financing services have been designed to assist real estate investors with financial solutions that offer quick relief in challenging times when liquidity or cash flow is an issue. America Mortgages Bridge has normal terms of 12-36 months with interest-only payments.

4. Delayed purchase exit

Using a bridge for purchase is almost “same-as-cash” and could get your offer accepted when other offers may be tied to “traditional” financing. The big question, how do you exit out of a higher interest bridge loan? The answer is simple; Delayed Purchase.

In a delayed purchase transaction, you can take out a “traditional” mortgage on the property immediately. This allows you to have the advantage of being a “cash buyer” and gives sellers the chance to know the transaction will close while giving you the time and flexibility to obtain a long-term permanent mortgage. Depending on the loan program, this normally needs to be done within three months of closing.

Bridge loan Case Studies

Here are two case studies of America Mortgages Bridge financing solutions:

Canadian investment fund purchases hotel in Texas. Read More.

Chinese National closes US$5.6m purchase with GMG Bridge Loan. Read More.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions www.americamortgages.com

Introducing the “BREFI” (pronounced /brèːfè/), A New Loan Programme by GMG

New Loan Programme

Over the past 12 months, the most common funding problem is the lack of financing options at the early stages of a real estate project: land acquisition, initial development, real estate purchase before the renovation, equity cash out towards new development, etc.

GMG receives high-value financing requests in almost all major countries, and it’s been very clear that traditional banks are less willing to take on the risk of financing the early stages of a real estate development or project. There has never been a greater need for non-bank alternatives than now.

Many of our high-net-worth clients have relied on the ‘long relationship’ with their banks (Implicit Put option) to be their lender of last resort, and when they are not, there is a scramble for financing options in a short period of time, which we see now. A separate issue is that banks, in general, may require recapitalization from losses due to Covid-19 and are looking to preserve capital.

Bridge Lending (the B part of BREFI).

As many of you know, one of the advantages of bridge loans is that they allow the borrower to secure opportunities that you would otherwise miss. Another advantage is bridge loans allow for flexible payment terms depending on the loan agreements. You can choose to start paying off the loan before or after securing long-term financing.

Also, qualifying and getting approved for a bridge loan takes less time than a traditional loan, giving the borrower the convenience of quickly owning the asset and begin getting the project off the ground with the intention of replacing the bridge loan with a more permanent construction loan, as an example.

GMG BREFI (short for Bridge + Refi).

We created the BREFI to combine 2 types of mortgage origination effort into one single offering to help clients with their initial bridge and onto the next stage of funding, usually a construction or development loan.

For example, in some cases, the initial bridge loan is used to purchase the property or land and prepare it to be “Shovel-ready.” That is land or structure that has plans, zoning, and issued permits in place. Having these ready allows for construction to begin immediately after closing.

A major difference between these two is that new construction loans fund the construction of a new structure, whereas bridge loans allow investors to purchase land or property but typically do not fund any construction costs. A GMG BREFI combines them both into one service offering.

Investors who obtain a bridge loan will usually begin construction after they have refinanced out into their long-term loan.

Typical Bridge Loan

  • Used to purchase “shovel-ready” land or land with an existing structure for a quick flip
  • Used to pay off the existing loan by refinancing into another loan
  • Not normally used to fund construction

Typical Construction Loan

  • Used purchase “shovel-ready” land or land with an existing structure to tear down and rebuild
  • Used to pay off the loan upon selling the property
  • Always used to fund construction

Our team uses GMG BREFI by finding lenders that will take both portions of the funding stack, Bridge + Construction.

Some common uses of GMG BREFI

Purchasing a plot of land to build a new development

Investors looking to purchase a plot of “shovel-ready” land would normally use a construction loan which is not available in this market environment. A BREFI will allow you to acquire the desired land and finance the new development on the property.

Purchasing an existing property (IE en bloc in Singapore) to tear down and build a new one

For clients planning to tear down and rebuild a structure on a piece of land, a BREFI can be used as a financing option.

Financing required to purchase land and begin construction immediately

Property developers who have the required documentation to begin construction on a piece of land can use the BREFI, where typical construction loans are not available with traditional banks. The hardest part of any new construction is getting the needed permits; once this is done, our lenders can disperse the funds in “construction draws” to start building.

We have many Case Studies for the GMG BREFI for transactions globally.

Please contact your GMG International Loan Specialist for more information: hello@gmg.asia

America Mortgages Introduces U.S. Bridge Lending

America Mortgages

A bridge loan is short-term financing used to facilitate the financing of a property for a short period. It is used to either acquire, maintain or improve a property with quick access to funds while more permanent financing is being arranged.

America Mortgages Bridge is a unique arrangement with various funds globally that gives America Mortgages the ability to source immediate asset-based capital in most countries worldwide. America Mortgages has funds and lending partners specializing in U.S.A., SE Asia, Central Asia, Europe, Central America, and the Caribbean. These unique relationships and volume give America Mortgages a lot of negotiating power on behalf of the client.

Regardless if you’re in the U.S., Singapore, Hong Kong, HCMC, or Phnom Penh, America Mortgages Bridge is a viable short-term financing option to assets you may own globally and wish to keep but have a short term liquidity issue. In many cases, these events are unforeseen and can be resolved in a few months to a year. We understand the situation and the implications and, in most cases, take a loan from application to funding in a matter of 10 days. In most cases, we don’t like to exceed 55%LTV (loan-to-value); however, in some cases, we have been able to secure as high as 70% LTV. Anyone that knows bridge financing – that is extremely aggressive.” Robert Chadwick | America Mortgages

AMERICA MORTGAGES OFFERS BRIDGE FINANCING ON A VARIETY OF PROPERTY TYPES:

  • – Commercial buildings
  • – Hotels and casinos
  • – Land
  • – Warehouses
  • – Retail shopping centers
  • – Mixed-use residential
  • – Apartment buildings
  • – Luxury homes
  • – Multi-family commercial

REASONS COMPANIES OR INDIVIDUALS APPLY FOR BRIDGE FINANCING:

  • – Avoiding foreclosure
  • – Quick close on the property
  • – Partner Buy-Out
  • – Financing a project beyond standard bank limits
  • – Pay off debt

“When America Mortgages issues a bridge loan, a viable exit strategy is in place before the loan ever funds. Normally America Mortgages Bridge loans, regardless if they are in Vietnam, Cambodia, Hong Kong, or the U.S., the terms are relatively the same. 12-36 months interest-only payments with rates ranging from 9%-15% depending on the location, the rule of law, and the collateral. More often than not, with the proper time frame, we can refinance these assets into long-term financing through America Mortgages’ commercial or residential mortgage programs.”Robert Chadwick | America Mortgages

Often America Mortgages Bridge financing is a cheaper alternative to the standard hard money or private lending options, while just as flexible underwriting and fast with the turn around to fund. Both are non-standard loans acquired due to short-term or uncommon situations. A bridge loan term may be closed, only available for a pre-determined time, or open with no fixed payoff date. There may be a required payoff after a specific date. America Mortgages Bridge has normal terms of 12-36 months with interest-only payments.

America Mortgages provide bridge loan financing for companies, developers, and individuals on a global scale. These interim financing services have been designed to assist real estate investors with financial solutions that offer quick relief in challenging times when liquidity or cash-flow is an issue.

As one of the leading International property bridging finance companies in the market, we pride ourselves on creating long-term client-lender relationships.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions hello@americamortgages.com.

What Is Bridge Financing And How Does It Benefit Investors?

What Is Bridge Financing

For those who are new to investing in real estate, the common question is, what is bridge financing? A better question is, what is bridge financing, and how does it benefit commercial real estate investors?

For investors that are well-versed in bridge financing you understand the importance of having access to reliable and reputable bridge lenders.

Bridge financing is short-term financing, sometimes referred to as private money, smart money, or hard money. Bridge loans are typically made by private individuals and not banks, so the interest rates on bridge loans are higher than on bank loans. International bridge lending allows non-U.S. citizens / Foreign Nationals to invest in US or other global Real Estate projects by providing the needed capital in a quick and efficient manner.

Many of the commercial real estate investors who were able to purchase distressed commercial properties in recent years made out very well. In order to act on multiple opportunities at the same time, many real estate investors have turned to bridge financing.

Bridge financing benefits investors in 3 important ways:

1. Bridge financing allows investors to make their money go further. For example, if two properties come together at the same time, an investor can purchase both properties using a bridge loan on each purchase.

2. Bridge financing removes partners or family members from a deal. Investing with family members or business partners can be tricky. Bridge loans can remove other partners from the equation, allowing an investor more freedom and flexibility with a newly acquired asset.

3. Bridge loans fund faster than bank loans. If an opportunity is good, it won’t last long. Bridge loans have fewer requirements than bank loans and thus close quicker. Bridge financing allows investors can grab a fleeting opportunity before another investor snatches it up.

International bridge financing for global/international real estate projects?

Global Mortgage Group’s extensive network offers numerous options for Bridge Financing regardless of your citizenship. Whether for a hotel project in Spain, land in Thailand, or a dairy farm in India, GMG is your solution for reliable capital sourcing.

Our capital network and experience in international bridge lending expands borders.

With over 70 combined years of experience in the mortgage and investment banking industry and with access to funds around the world, GMG will consider most international bridge funding requests. Currently, we offer bridge lending on international and foreign borrowers with a minimum loan amount of US$3M with a maximum of 50% LTV/LTC.

Contact us to find out more at hello@gmg.asia

Global Mortgage Group Introduces GMG Bridge

global mortgage Group

A bridge loan is short-term financing used to facilitate the financing of a property for a short period of time. It is used for various reasons to either acquire, maintain or improve a property with quick access to funds while more permanent financing is being arranged.

GMG Bridge is a unique arrangement with various funds globally that give Global Mortgage Group the ability to source immediate asset-based capital in most countries around the world. GMG has funds and lending partners that specialise in the U.S., UK, Europe, Canada, Australia, Singapore, Hong Kong, Thailand, and UAE. These unique relationships and volume give GMG a lot of negotiating power on behalf of the client.

“Regardless if you’re in the U.S., UK, Europe, Canada, Australia, Singapore, Hong Kong, Thailand, or UAE, GMGBridge is a viable short-term financing option for assets you may own globally and wish to keep but have a short-term liquidity issue.”

“In many cases, these events are unforeseen and can be resolved in a few months to a year. We understand the situation and the implications and, in most cases, take a loan from application to funding in a matter of 10 days. In most cases, we don’t like to exceed 55%LTV (loan-to-value). However, in some cases, we have been able to secure as high as 70% LTV.”

“Anyone that knows bridge financing, that is extremely aggressive.”

Robert Chadwick | GMG

Global Mortgage Group offers bridge financing on a variety of property types:

  • Commercial buildings
  • Hotels and casinos
  • Land
  • Warehouses
  • Retail shopping centers
  • Mixed-use residential
  • Apartment buildings
  • Luxury homes
  • Multi-family commercial

Reasons Companies or Individuals apply for bridge financing:

  • Avoiding foreclosure
  • Quick close on the property
  • Partner Buy-Out
  • Apartment buildings
  • Financing a project beyond standard bank limits
  • Pay off debt

“When GMG issues a bridge loan, a viable exit strategy is in place before the loan ever funds. Normally GMGBridge loans, regardless if they are in Europe, the UK, Canada, Australia, Singapore, Thailand, Hong Kong, UAE, or the U.S., the terms are relatively the same. 12-36 months interest-only payments with rates ranging from 9%-15% depending on the location, the rule of law, and the collateral. More often than not, with the proper time frame, we can refinance these assets into long-term financing through Global Mortgage Group’s commercial or residential mortgage programs.”

Robert Chadwick | GMG

Often GMGBridge financing is a cheaper alternative to the standard hard money or private lending options while just as flexible underwriting and fast turnaround to fund. Both are non-standard loans acquired due to short-term or uncommon situations. A bridge loan term may be closed, only available for a pre-determined time, or open with no fixed payoff date. There may be a required payoff after a specific date. GMGBridge has terms of 12-36 months with interest-only payments.

Global Mortgage Group provides bridge loan financing for companies, developers, and individuals on a global scale. These interim financing services have been designed to assist real estate investors with financial solutions that offer quick relief in challenging times when liquidity or cash flow is an issue.

As one of the leading International property bridging finance companies in the market, we pride ourselves in creating long-term client-lender relationships.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions hello@gmg.asia