Why Bridge Financing Will Be More in Demand Until 2015

Given its name from Basel, Switzerland, the Basel Committee on Banking Supervision, serves as the new “watchdog” for all banks, both in the U.S. and abroad. A new regulation called the Basel III, will force U.S. banks to comply with higher standards by as soon as 2015. These new standards have to do with liquidity and leverage and many say that U.S. banks will be forced to tighten lending until 2015 in order to be able to comply with them. This is why the demand for bridge loans is growing so quickly. That’s right, banks still aren’t lending on anything other than homes.

The need for bridge lending has grown since the onset of the financial crisis and is expected to grow in leaps and bounds through 2015. Not sure what is a bridge loan? Read more on this topic from one of our past blog posts here: http://privatemoneyutah.com/what-is-a-bridge-loan/

The bottom line is that banks still aren’t lending on investment properties, and in particular, on commercial properties. And forget about getting a loan for a new development or an expansion unless you have a bridge lender in your back pocket. 

Because bank lending will remain tight through 2015, bridge financing is an alternative for real estate investors looking to do investment property deals in the next couple of years.  Our company is a trusted resource for bridge financing and we are seeing a tremendous increase in demand for these types of loans. If you are on the hunt for a bridge loan or a private money loan, read more about our private money real estate loans at this link: http://privatemoneyutah.com/loan-programs/