Short-Term Financing
Bridge Loans for Real Estate Investors
Close in as few as 7 days. Interest-only payments. We shop your deal to 50+ lenders so you get the speed and terms you need - whether you're buying at auction, acquiring off-market, or stabilizing a new asset.
What Is a Bridge Loan?
A bridge loan for real estate is a short-term financing tool that lets investors move quickly on opportunities that traditional lenders are too slow to fund. The name says it all - a bridge loan "bridges" the gap between an immediate capital need and a permanent financing solution, giving you access to capital in days rather than weeks or months.
Unlike permanent financing options such as DSCR loans or conventional mortgages, bridge loans are designed for speed and flexibility. They are typically asset-based, meaning approval hinges on the value and potential of the property rather than your personal income or tax returns. Terms range from 6 to 24 months, payments are interest-only, and closings can happen in as few as 7 days.
Speed matters in real estate investing. Whether you are competing against cash buyers at an auction, closing on an off-market deal with a tight deadline, or acquiring a property that needs stabilization before it qualifies for long-term financing, a short-term bridge loan gives you the ability to act decisively. At Sinai Capital, we work with 50+ lenders nationwide to find you the fastest close and most competitive bridge loan rates for your specific deal.
How Bridge Loans Work
The bridge loan process is streamlined for speed. Here is how it works when you apply through Sinai Capital:
- Submit your deal. Tell us about the property, your purchase price, desired loan amount, and timeline. This takes about two minutes through our online form.
- We shop it to 50+ lenders. Your dedicated loan officer sends your deal to our network of bridge lenders - from institutional debt funds to private capital sources - and collects competing term sheets on your behalf.
- Pick your best option. We present you with the most competitive offers side by side. You choose the rate, terms, and lender that fit your deal. No pressure, no hidden fees.
- Close and fund. Once you select a lender, we handle the paperwork, coordinate with title, and push the deal to closing. Most bridge loans fund in 7 to 14 days.
- Execute your exit strategy. During the loan term, you stabilize, renovate, or hold the property. When you are ready, you exit by refinancing into permanent financing or selling the property.
Because bridge loans are interest-only, your monthly payments stay low while you execute your business plan. You pay only the interest each month - no principal amortization - which preserves your cash flow during the hold period. When you are ready to exit, you pay off the full principal balance.
Key Features at a Glance
Loan Amounts
$100K – $5M+
LTV
Up to 80% of purchase price, up to 70% of ARV
Terms
6 – 24 months
Close Time
7 – 14 days
Interest Type
Interest-only payments
Prepayment
Flexible - no lockout on most programs
Property Types
SFR, multifamily, mixed-use, commercial
Exit Strategies
Refinance, sell, or payoff
Terms shown are representative ranges. Actual rates, leverage, and terms vary by lender, borrower experience, and property type. Your loan officer will walk you through exact numbers for your deal.
When to Use a Bridge Loan
Bridge loans are built for situations where speed, flexibility, or property condition rule out traditional financing. Here are the most common scenarios where a bridge loan for investment property is the right tool:
- ✓Auction purchases. Most auctions require proof of funds and closing within 7 to 14 days. Bridge loans are one of the only financing options fast enough to meet these deadlines.
- ✓Time-sensitive acquisitions. Off-market deals, motivated sellers, and competitive bid situations all demand the ability to close fast. A bridge loan lets you compete with cash buyers.
- ✓Properties that need stabilization. If a property has high vacancy, deferred maintenance, or below-market rents, it likely will not qualify for a DSCR loan right away. A bridge loan gives you time to stabilize the asset and then refinance into permanent financing.
- ✓Transitional properties. Properties changing from one use to another - like a commercial building being converted to multifamily - often fall outside traditional lending boxes. Bridge loans fund the transition.
- ✓Gap financing. Selling one property and buying another? A bridge loan covers the gap so you do not have to wait for your sale to close before acquiring your next asset.
- ✓Value-add projects. If you plan light renovations or capital improvements to increase property value, a bridge loan funds the acquisition while you execute the upgrades - then you refinance at the higher value. For heavier rehab projects, consider a fix-and-flip loan with built-in rehab draws.
Qualification Requirements
Bridge loans are asset-based, so underwriting focuses primarily on the property and deal structure rather than personal income. However, lenders still evaluate the borrower. Here is what most bridge lenders in our network look for:
Credit Score
Minimum 620 for most programs. Higher credit scores unlock better rates and higher leverage.
Down Payment
Typically 20% to 25% of the purchase price. Some programs offer higher leverage for experienced borrowers.
Exit Strategy
A clearly defined plan to pay off the loan - usually a refinance into permanent financing or a property sale.
Experience
First-time investors can qualify, but experienced borrowers with a track record get better terms and higher LTVs.
Property Condition
The property must meet minimum habitability standards. Severely distressed properties may require a fix-and-flip loan instead.
Liquidity
Most lenders want to see 3 to 6 months of interest reserves in the bank to ensure you can service the loan.
Not sure if you qualify? Fill out our quick pre-qualification form and a loan officer will review your deal for free - no credit pull, no obligation.
Sample Deal Scenario
Marcus finds an off-market 4-unit multifamily property in Dallas for $600,000. The seller is motivated and wants to close in 10 days - far too fast for a conventional lender. Two of the four units are vacant and rents on the occupied units are below market, which means the property will not qualify for a DSCR loan in its current state.
Marcus contacts Sinai Capital. His loan officer shops the deal to bridge lenders in our network and secures the following terms within 24 hours:
$600,000
$450,000
$150,000 (25%)
10.5%
$3,938
12 months
2 points ($9,000)
9 days
Marcus closes in 9 days. Over the next four months, he fills the two vacant units at market rents, raises rents on the occupied units, and makes minor cosmetic upgrades. The property is now fully stabilized with a gross rental income of $5,200 per month.
At month five, Marcus works with Sinai Capital again to refinance into a DSCR loan at a 30-year fixed rate. The property appraises at $780,000 based on its stabilized income. He pays off the $450,000 bridge loan, pockets the difference, and holds the property long-term with positive cash flow. The bridge loan gave him the speed to acquire the asset and the runway to force appreciation before locking in permanent financing.
Bridge Loans vs. Hard Money Loans
The terms "bridge loan" and "hard money loan" are often used interchangeably in real estate investing, and there is significant overlap. Both are short-term, asset-based loans with higher rates than conventional financing. However, there are some meaningful distinctions that can affect your deal.
| Feature | Bridge Loan | Hard Money Loan |
|---|---|---|
| Lender Type | Institutional debt funds, banks, private capital | Private individuals, small lending companies |
| Interest Rates | 9% – 12% | 11% – 15%+ |
| Origination Fees | 1 – 2 points | 2 – 4 points |
| Underwriting Focus | Asset value + exit strategy + borrower profile | Primarily collateral value |
| Loan Terms | 6 – 24 months | 6 – 18 months |
| Best For | Acquisitions, stabilizations, gap financing | Distressed properties, borrowers with credit issues |
A hard money bridge loan can be the right choice when the property is in poor condition, the borrower has credit challenges, or the deal does not fit institutional guidelines. In many cases, however, an institutional bridge loan offers better rates and more favorable terms.
Because Sinai Capital works with both institutional bridge lenders and private hard money lenders, we can match you with the right source for your specific situation. We will always show you the most competitive option available for your deal - regardless of what label it falls under.
Frequently Asked Questions About Bridge Loans
What is a bridge loan for real estate?
A bridge loan for real estate is a short-term financing solution designed to "bridge" the gap between an immediate capital need and a longer-term financing arrangement. Investors use bridge loans to quickly acquire properties, fund renovations, or stabilize a property before refinancing into a permanent loan such as a DSCR loan. Terms typically range from 6 to 24 months with interest-only payments.
What are typical bridge loan interest rates?
Bridge loan rates typically range from 9% to 13% depending on leverage, borrower experience, property type, and exit strategy. Rates are higher than conventional financing because bridge loans offer speed, flexibility, and approval based primarily on the asset rather than borrower income. Points (origination fees) usually range from 1 to 3 points. Sinai Capital shops your deal to 50+ lenders to find the most competitive bridge loan rates available for your scenario.
Bridge loan vs hard money loan - what is the difference?
The terms are often used interchangeably, but there are differences. Bridge loans are generally issued by institutional lenders or debt funds, offer slightly lower rates, and focus on a clear exit strategy such as refinance or sale. Hard money loans tend to come from private individuals, carry higher rates, and place more emphasis on the collateral value of the property. Both are short-term, asset-based lending products. At Sinai Capital, we have access to both bridge lenders and hard money lenders so we can match you with the best fit.
How fast can a bridge loan close?
Bridge loans can close in as few as 7 days for straightforward deals with clean title and a prepared borrower. Most bridge loans close within 7 to 14 business days. The speed depends on how quickly you provide documentation, the complexity of the property, and whether an appraisal is required or waived. Having your entity documents, bank statements, and purchase contract ready can significantly speed up the process.
What exit strategy do I need for a bridge loan?
Every bridge loan requires a clearly defined exit strategy. The most common exit strategies are refinancing into a long-term loan (such as a DSCR loan or conventional mortgage) or selling the property. Lenders want to see that your plan is realistic and achievable within the loan term. For example, if your exit is a refinance, the property should appraise high enough to qualify for permanent financing. If your exit is a sale, comparable sales should support your target price.
Can I use a bridge loan for an auction purchase?
Yes. Bridge loans are one of the best financing tools for auction purchases because of their speed. Many auctions require proof of funds or closing within 7 to 14 days, timelines that traditional lenders cannot meet. With a bridge loan through Sinai Capital, you can get pre-approved before the auction and close fast enough to meet even the tightest deadlines. Some lenders will even provide a proof-of-funds letter before the auction date.
What happens if my bridge loan matures before I can refinance?
If your bridge loan is approaching maturity and you are not ready to refinance or sell, you may be able to request an extension from your lender. Most bridge loans include extension options (typically 3 to 6 months) for an additional fee. However, extensions are not guaranteed and usually come with higher rates. The best approach is to start planning your exit strategy early - ideally 60 to 90 days before maturity. Sinai Capital can help you line up a refinance or identify a backup plan well before your loan comes due.
Ready to Move Fast on Your Next Deal?
Get pre-qualified for a bridge loan in minutes. No credit pull, no obligation. We shop your deal to 50+ lenders and bring you the best option - nationwide.
Related Loan Products
Fix-and-Flip Loans
Short-term financing with rehab draws for investors who buy, renovate, and sell properties for a profit.
DSCR Loans
Long-term rental property loans that qualify based on the property's cash flow - not your personal income. A common exit strategy for bridge loans.
Construction Loans
Ground-up construction financing for investors building new residential or commercial properties from scratch.