Bridge loan in Portugal

3 Replies

Hi there,

Owning a small portfolio of properties for buy and hold strategy, that gave me financial independence in Portugal, I made the decision to quit my job.

Now, there is no income to declare as salary and so, banks deny lending money for new purchases. Beside that, Portuguese banks are strict with rules that clearly don’t fit for investors.

Right now, I have on my lap a duplex for 180.000€, and that can be rented monthly for 1.600€ (800€ for each unit). But there is no chance for me to get a traditional loan from a bank due to my “no job” situation.

Is a bridge loan the only alternative?

Appreciate your thoughts.

Bridge loans are typically used when there is value to be added, cash flows to be increased.  The future cash flows would then be used to secure conventional financing.  Your deal sounds like standard financing would be appropriate, you just can't get a loan.  So no, bridge loan is not going to work.

Hi Luís,

Congrats in finding a deal.

My suggestion (without knowing the details of your finances, so take it with a grain of salt) is to start an LLC and run your portfolio cashflow through it.

It will qualify you for business loans and even allow you to use the PME guaranteed lines of credit.

Furthermore, it will probably more tax efficient to run your properties that way.

Regards, Rui

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