Utah bridge loans are one of our specialties here at Actium Lending. We offer the short-term loans to cover a variety of needs, including real estate transactions and business expansion. Our clients appreciate our fast and streamlined service that requires minimal paperwork and absolutely no hoops to jump through. But to get you approved, we do need some basic information.
Note that bridge loans are designed to bridge the gap between an immediate funding need and a future source of income or alternative funding. If you need access to fast cash but aren’t interested in a long-term loan with a traditional lender, a bridge loan might be perfect for you.
While you think about that, here are three things you will need to tell us when you apply for a Utah bridge loan:
1. Your Funding Need
To move your application forward, we need to know exactly what your funding needs are. In other words, how do you intend to use the money if your loan is approved? We feel this information is important for a couple of reasons.
First, it is important to determine whether the requested bridge loan aligns with your financial goals. Bridge loans can be especially useful for reaching all sorts of goals. But they are not appropriate for every short-term financing need.
Second, we need to determine if the purpose of the loan justifies the risk. Using a bridge loan to acquire a new piece of real estate is a classic example. A bridge loan allows for fast financing that gets a borrower to closing even while they are finalizing the sale of another property.
2. Your Collateral
Utah bridge loans are secured by collateral. In nearly every case, that collateral is real estate. However, it could be another asset as well. The value of the collateral you present goes a long way toward determining whether your bridge loan will be approved or not.
It is worth pointing out that both bridge and hard money loans place a heavy emphasis on collateral as a determining factor. Doing so allows us to bypass the processes traditional lenders follow – like looking into every detail of a borrower’s financial life. To us, collateral is the most important part of the equation.
3. Your Exit Strategy
Finally, you will need to clue us in on your exit strategy when you apply. What is an exit strategy? It is your plan for repaying the bridge loan in the agreed amount of time. Your plan should be clear, reasonable, and fit within the agreed timeline.
Seeking traditional funding is a common exit strategy. We once funded the acquisition of a multi-unit apartment complex through a transaction that could have ultimately failed had we not stepped in. To make a long story short, our funds allowed the borrower to complete the deal on time. He then arranged traditional funding to pay back his bridge loan.
Contact Us to Learn More
As private lenders, Actium Lending has the ability to be flexible in nearly every aspect of what we do. This benefits you as the borrower. If you are looking for short term funding and want to avoid the time, effort, and aggravation often associated with traditional lending, a privately funded bridge loan could be exactly what you’re looking for.
Do not hesitate to contact Actium Lending to learn everything you need to know about Utah bridge loans. We have funds ready to invest in new projects. Tell us what you’re working on and how a bridge loan could help you reach your financial goals.
