Cincinnati Bridge Loans: FAQs for New Investors

Cincinnati bridge loans are very unique. Commercial real estate investors in Cincinnati, OH may not know about bridge loans or how to use them properly, because traditional loans have always been the “go to” solution. At A-Key Funding Solutions, we frequently receive emails and calls from people asking about Cincinnati bridge loans, so we have put together a list of frequently asked questions to clear up any confusion.

What is a bridge loan?

Bridge loans are typically used by Cincinnati area commercial real estate investors to cover any gaps in capital. Cincinnati bridge loans get their name because they provide working capital during time-sensitive periods when revenue isn’t being generated, or larger financing is still in the pipeline.

How do Cincinnati bridge loans work?

Bridge loans are set apart from traditional loans from banks and other lending institutions. Bridge loans can be arranged quickly, and typically use existing property as the basis for the amount of funding received.

How are bridge loans used?

Bridge loans have a variety of uses. The popular use of bridge loans comes from those in the fix and flip business. While larger loans are still being processed, Cincinnati property investors can use bridge loans to cover immediate expenses such as lining up contractors, securing permits, purchasing materials, and even to stage homes to make them attractive to buyers. Cincinnati bridge loans can also be used to provide working capital in between projects.

So what sets Cincinnati bridge loans apart from traditional bank loans?

Traditional loans take a while to process. If Cincinnati commercial real estate investors have a time-sensitive project lined up, delays in processing and closing may cause potentially lucrative opportunities to be missed. Additionally, traditional lenders view independent commercial real estate investors as “risky borrowers.” These lenders are less inclined to approve loan requests for fix and flip projects for independent investors than they would be for large property development firms with a well-established history of generating revenue from multi-million dollar properties. Cincinnati bridge loans are designed to keep projects on track so commercial real estate investors can start selling or renting out properties.

Learn more about Cincinnati bridge loans

If you have other questions about bridge loans, contact the team at A-Key Funding Solutions. We specialize in commercial real estate financing solutions for the greater Cincinnati area. Whether you have been purchasing commercial properties for years or you are just starting out, our team will work with your directly to create a solution tailored to your needs.

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