Senior Bridge Loan

The Senior Bridge Loan

Our brokerage services include short-term real estate bridging loans and development financing. Take a look at our latest deal, the Whole Loan Senior. Real estate financing methods If you are a real estate development company looking to obtain a peer-to-peer loan or a mortgage provider looking to make your first capital outlay, it is useful to know the difference between the three most commonly used real estate financing options. Good comprehension helps to determine your credit exposure portfolio, as credit cannot always be assessed on the basis of LTV and return.

Senior loan is a form of borrowing where the entity granting the loan has the advantage of first debiting the collateral provided by the debtor. This is referred to as a'senior' loan because it has priority over any other uncollateralised or'subordinated' loan claim against the debtor.

Should the Mortgagor default, the real estate used to guarantee the Loan will be used to pay back the Loan before other Lenders do. Priority credits usually have a longer maturity and can be between one and five years. An interim loan is a short-term financing arrangement that enables the borrowing party to close the gulf between a due liability and a contract.

Borrowers could look for a bridge loan if they need faster cash flow management. The duration of the bridge credits is usually between 6 and 18 month. Also, the lender assumes the initial responsibility for a real estate portfolio as collateral for the loan. Mortgages are credits whose collateral is subordinate to senior credit, i.e. mortgages rank behind senior bonds.

That means that in the case of delay, first the senior creditors and then the Meczanine creditors are disbursed. Therefore, there is a higher credit exposure for meszanine exposures than for senior exposures. This can also be described as a second debt arrangement. Our company is a peer-to-peer on-line credit trading system that brings together a number of credit providers for credits issued on industrial and housing properties.

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