What is it
Bridge financing, also known as a bridge loan, is a short-term mortgage loan that is often used in the real estate market. The purpose of this loan type is to bridge a temporary financial gap between the need for resources for the purchase or development of real estate and the moment when longer-term financing becomes available or when resources are released from the sale or development of a real estate object or portfolio. The collateral for this loan is the relevant real estate object, land position or real estate portfolio.
For whom
Real estate developers, builders/contractors, real estate investors or real estate traders and real estate flippers.
What is the purpose
- Making the necessary financial resources available quickly and temporarily, often in anticipation of an expected source of income or planned transaction
- Facilitating a quick purchase of an object and/or land position (taking advantage of opportunities)
- Buying time in a banking refinancing process
- To bridge temporary liquidity problems (rescue loans)
What is funded
- Purchase of new real estate (object and/or land position)
- Existing real estate (object and/or land position)
- Construction and transformation costs
- Conversion/renovation costs
- Other development/foundation costs
In which phase
- Purchase phase
- Permit process
- Construction phase
- Phase prior to refinancing
Financing partners of Novel Finance
- Dutch and international banks
- Specialist project financiers (international)
- Real estate developers
- Builders/contractors
- Peer-to-peer & crowdfunding platforms
- Private investment funds
- Private investors