Bridge Loans: Worth It or Too Risky?

[Brandon Lee]

Bridge loans can be a great tool — or a trap, depending on timing and terms.

For those who’ve used them recently, how have your experiences been?

Would love to exchange insights with others navigating these deals.

[Elealeh Fulmaran]

Bridge loans work when you have a clear, fast exit and tight numbers; they trap you when timelines slip. Treat them like hard money: higher rates, points, interest‑only, short terms. Stress test your deal with extra months of carry, include all fees, and line up your takeout loan or sale before you close. If you can, simplify: use one capital source for purchase and rehab, then refi to DSCR once stabilized, instead of stacking products and paying multiple closings. Biggest key: have two exits and enough reserves to survive delays.