With the recent influx of commercial real estate investment projects in New York City, the need for specialized financing solutions has come to the forefront. Commercial real estate investors are distancing themselves from traditional lending channels in favor of faster, more efficient, and more accessible funding programs. To cover immediate costs and keep projects on track, NYC property investors are using bridge financing.
Parting Ways with Traditional Lending Channels
Traditional lending channels have become more of an obstacle than anything else for NYC commercial real estate investors. Banks and similar lenders still view commercial real estate as a high-risk investment, despite the growing demand for properties throughout New York City. Traditional lenders have a high point of entry, long processing times, and interest rates that are subject or arbitrary hikes. Additionally, traditional lenders do not have programs tailored to the needs of NYC commercial real estate projects.
Bridge Financing Takes the Lead
Bridge financing is not just for standard businesses. Commercial real estate investors regularly use bridge financing to cover immediate expenses while larger loans are still in the pipeline. Permits, materials, lining up contractors, and more need to be paid for in advance to ensure commercial real estate projects stick to timelines so investors can start generating revenue quickly. Bridge financing is designed to fill in those gaps in capital to reduce possible delays.
Bridge Financing is Versatile
Bridge financing can be used for more than just renovation and rehab projects. Bridge loans can also be used for debt refinancing and restructuring, repositioning assets, partner buyouts, and even DPO financing. Bridge loans can be arranged quickly so commercial real estate investors in New York City can remove obstacles and expedite projects instead of getting caught in the red tape of traditional lending channels. With more Opportunity Zones and the need for both business, industrial, and multifamily space throughout NYC, investors are using bridge financing instead of waiting on traditional lenders to approve loan applications.
Express Capital Financing specializes in bridge financing for commercial real estate transactions and projects throughout NYC. Contact our offices today and get a jump start on your next project.