Unleashing On-Demand Liquidity: Real Estate Bridge Loans for Savvy Investors

Bridging Companies

In the fast-paced world of real estate investing, seizing opportunities and accessing immediate liquidity is paramount. Savvy investors understand the need for a financial solution that bridges the gap between the present and the future, allowing them to capitalize on lucrative investments, time-sensitive deals, and business expansion. Introducing real estate bridge loans – a powerful tool designed to provide experienced and sophisticated U.S. real estate investors with the flexibility and speed required to navigate the ever-changing landscape of property transactions. In this article, we explore why real estate bridge loans have evolved beyond the realm of Ultra High Net Worth individuals, becoming an excellent option for anyone seeking liquidity – a true game-changer in the market.

real estate

Here are some of the advantages of real estate bridge loans:  

    1. Speed and Certainty: Bridge loans can be approved and funded quickly, which is essential for investors who need to act quickly to seize an opportunity.
    2. Flexibility to optimize returns: The terms of a bridge loan can be tailored to the specific needs of the borrower, which gives investors more control over their financial strategy.
    3. Risk Mitigation and Overcoming Obstacles: Bridge loans can be used to acquire properties that do not meet the stringent criteria of traditional lenders, such as distressed assets or properties requiring significant renovations. This can help investors unlock hidden value and achieve their financial goals.
    4. Competitive advantage: Bridge loans can give investors a competitive advantage by allowing them to negotiate more effectively and secure desirable properties.
    5. Smooth transition and timing: Bridge loans can help investors align their financial strategies seamlessly, eliminating the need to wait for the sale of existing properties or long-term financing to materialize. In conclusion, real estate bridge loans are a powerful tool that can help investors achieve their financial goals.
    1.   

    They offer speed, flexibility, risk mitigation, a competitive advantage, and seamless transition. If you are an investor who needs quick access to liquidity, a real estate bridge loan may be the right option for you.

    America Mortgages is a leading provider of real estate bridge loans in the United States. They offer a variety of loan products to meet the specific needs of investors, and they are known for their fast and efficient approval process. America Mortgages is a member of Global Mortgages Group (GMG), a Singapore-based real estate financing firm with offices in 12 different countries. With their global reach and extensive experience, America Mortgages is the trusted partner for investors around the world. For more information, please visit www.AmericaMortgages.com or www.GMG.asia

    Secure Your Investments Anywhere with Fast Bridging Loans

    Fast bridging loans

    As the business world becomes increasingly dynamic and interconnected, the need for fast bridging loans is more important than ever. Whether you’re a U.S. expat, a global entrepreneur, or an international property investor, securing the funds you need to move quickly on new opportunities is crucial. This is where Global Mortgage Group comes in, offering fast bridging loans to help you finance your urgent projects or property purchases anywhere in the world. What makes it even better is that personal or company financials are not required.

    Why Choose Fast Bridging Loans?

    Bridging loans are a form of short-term financing designed to ‘bridge’ gaps in your cash flow. They can be a game-changer when it comes to seizing time-sensitive business opportunities, launching new projects, or investing in residential or commercial property abroad. A bridging loan could be the financial instrument allowing you to make your next big move.

    The Advantages of Fast Bridging Loans

    1. Speed: The major advantage of fast bridging loans is, as the name suggests, their speed. Traditional loan approval processes can take weeks or even months – time that you simply might not have when an opportunity arises. Bridging loans from Global Mortgage Group can be processed quickly, providing the funds you need in a short timeframe.

    2. Flexibility: Bridging loans provides the financial flexibility you need to act on opportunities as they arise. Whether you’re purchasing property, funding a new venture, or investing in a time-sensitive project, these loans offer a short-term solution that can be repaid once your primary financing is secured or the property is sold.

    3. Ease of Application: Applying for a fast bridging loan with Global Mortgage Group is simple, with no need for personal or company financials. This streamlined process eliminates the typical paperwork hurdles, allowing you to focus on what’s most important – your investment.

    4. Global Reach: As the name suggests, Global Mortgage Group has a truly global reach. Whether you’re looking to invest in the bustling metropolis of Tokyo, the coastal areas of France, or the luxury property market of London, fast-bridging loans can help finance your ventures no matter where they are.

    Conclusion

    In an increasingly globalized world, the ability to move swiftly on investment opportunities can make all the difference. Global Mortgage Group’s fast bridging loans offer a speedy, flexible, and simple solution for short-term financing needs.

    Whether you’re a U.S. expat looking to invest overseas or an international investor seeking to purchase commercial or residential property anywhere, fast-bridging loans could be the financial boost you need to secure your next project or property investment. 

    Get in touch with us today to learn more about the structures and options of fast bridging loans at hello@gmg.asia.

    www.gmg.asia

    Go beyond ordinary banking. AM Real Estate Bridge Loan

    Bridge loan

    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, cash is king these days. With the current value of the U.S. dollar, it may be time to look at accessing liquidity quickly and easily. Normally regardless of your current financial situation, a bridge loan gives you quick access to up to 70% of your property value with simple, easy-to-understand terms. 

    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 27% 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;

    •  Where is the asset?
    •  What is the value and the outstanding debt?
    •  What situation are you trying to solve?

    Number 3 is the most crucial and often the hardest to rationalise. 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 of 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 in executing 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 stabilisation 

    – 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)

    – Recapitalisations/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 stabilised and ready for exit through a sale or by refinancing the property through traditional channels.

    As a company America Mortgages’ only focus is to provide U.S. mortgage financing for foreign nationals and U.S. expats. 100% of our clients are working and living outside the U.S. For more information on AM Bridge, please send an email to hello@americamortgages.com.

    www.americamortgages.com

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

    Singapore - Mortgage 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

      America Mortgages Introduces U.S. Bridge Lending

      America Mortgages - Offer Bridging Loans

      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.