Bridge Loans

Bridge loans, or gap loans, are designed as a temporary source of capital until more permanent funding can be obtained. There are several cases in which a bridge loan may be useful, such as:

  • A short-term loan used to secure the purchase of a new home until a traditional mortgage is obtained (such as finding a new home before the old home sells)
  • Short-term working capital to buy an investment property
  • Money to build a commercial or residential property
  • Funds to fix and flip a property
  • Short-term working capital for a small business
Private Real Estate Loan
Bridge Loans for Investment Properties

Bridge Loans for Investment Properties

Traditional financing for an investment property typically requires a strong history of reliable tenant payments. In most cases, however, the property owner wants to renovate the property to attract tenants. Once tenants are in place, it is often necessary to stabilize income that comes in. These hard money loans offer the means to complete the transaction with time to stabilize income.

Gap Financing for Purchase

Gap Financing for Purchase

Good opportunities do not always come at the best time. With gap loans, you can have access to almost immediate funding to snap up real estate with an all-cash offer and get approved based on the collateral alone. While the interest rate will be higher than that of a conventional mortgage, funding can be completed in just days, not months. This type of hard money loan may be used to buy all types of properties, including distressed properties, auction properties, 1-4 unit rental properties, apartment complexes and more.

Swing Loans for Home Buyers

Gap financing is an especially popular option for homeowners who are selling a home and buying a new home at the same time. This type of hard money loan allows a homeowner to immediately put their home on the market with no restrictions for obtaining a mortgage or buying a home with no payment required for months. The seller may then use the funds from the loan to buy the new property and repay the loan with the proceeds from the sale of the first home.

With traditional funding, lenders have guidelines for credit standards and a debt-to-income ratio. Many lenders also exclude gap financing payments for qualification purposes, meaning borrowers must qualify to buy a new home by adding the existing loan payment on the current mortgage to the new payment on the new home, which keeps most people from qualifying.

Hard Money

Apply Today

If you are interested in obtaining gap financing, we will ask about your reason for applying and your exit strategy. We offer up to 80% financing with a term of anywhere from 3 to 18 months. Because we focus exclusively on equity-based lending, credit history is not a factor.

Traditional lenders only provide capital under specific conditions. Direct Investors uses equity-based financing and provides gap loans backed by the equity in a property for any number of reasons. We make bridge loans to real estate professionals, investors, contractors and homeowners who are quickly buying residential or commercial real estate before property is sold.


Real Estate Loans