Bridge loans can be just the thing you need to secure funding to keep an investment moving forward. These types of commercial real estate loans are actually fairly new in gaining popularity, as people typically did not use them when it was easier to obtain traditional loans. However, as loans have been increasingly difficult to acquire and good credit it harder and harder to maintain, bridge loans have become more popular. However, due to that rising popularity, they have also become associated with scams.
To avoid being scammed, you want to fully understand the ins and outs of bridge loans when you are seeking out commercial real estate loans so you know what you are getting into. Doing as much research as possible can help you pinpoint exactly what your needs are and if a bridge loan is the thing for you. Some of the biggest scams are a “bait and switch” loan scam, the upfront free loan scam and identity theft loan scam. Some legitimate lenders will require upfront payment, so it can be tricky to sleuth out a scam. Make sure you pay attention to the details and do your homework. Make sure the intricacies match up – such as email addresses and other contact information.
The bait-and-switch scam is not necessarily about whether the lender is legitimate, but whether the loan itself is. Once again, paying attention to the minute details and ensuring that you are not being taken advantage of when it comes to your loan scenario. If you go into a situation depending too much on a lender to guide you through the process, you could be taken advantage of. Make sure you do your homework and ask a lot of questions so you seem like you are in the know.
Although trying to obtain bridge commercial real estate loans can be intimidating and you may be tempted to jump at the first opportunity you are offered, take caution. It’s important to read through all the documentation and know exactly what you are “signing up for” – because once you sign the dotted line, you are responsible for whatever terms are within the contract. So be sure to read the fine print.
Regardless of the situation, if something sounds too good to be true, it typically is. You should follow your gut when it comes to how you feel about your lender upon meeting and the terms of the contract. If it all seems to swing only in your favor, that may be a red flag. Yes, lenders are there to help you get the best deal – but they are there to make money too. If you have concerns, call a company you can trust — Level 4 Funding is here to answer your questions and offer the best service possible.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.