Frequently Asked Questions
Table of Contents
A bridge loan is a short term loan for investors who purchase real estate. These investors prefer to purchase or finance a property and usually renovate or remodel the property. These then either sell the property or refinance the current debt at the time of completion with a longer term loan or mortgage.
Bridges basically “bridge” the time when the property is acquired until it’s remodeled and sold or refinanced into a long term rental loan.
A bridge loan is great if you do not wish to purchase a property with all cash and have plans to remodel or complete a renovation on the property. It is commonly used by real estate investors for their fix and flips.
California, Colorado, Connecticut, Florida, Georgia, Illinois, Kentucky, Massachusetts, Maryland, Michigan, Missouri, South Carolina, New Jersey, New York, Tennessee, Oklahoma, Ohio, Pennsylvania, Texas, Virginia, Washington, West Virginia
Optimus Capital can fund and close on bridge loans in one to two weeks for experienced investors. Borrowers without experience may be slightly longer to close depending on documentation submitted.
The documents that we will need could include the following: application, experience spreadsheet, scope of work spreadsheet (if rehab requested), purchase agreement )if purchase), HUD (if refinance), copy of current mortgage statement (if refinance), escrow information, insurance agent information, credit card authorization form for appraisal or BPO, 2 months most current bank statements, If leased, rental agreement(s), Photo ID, possibly other documents.
At Optimus Capital, our bridge loan rates begin at 7.95. There are a variety of determining factors which can affect the interest rate, such as the percentage of the down payment in comparison to the purchase price, the borrowers experience, the profitability of the deal, as well as the personal credit scores of the borrower. Although this last factor is not the most determining factor; seriously low credit scores would not receive the same terms as a very high credit score.
At Optimus Capital, the maximum leverage offered on a bridge loan is 90% of purchase and 100% of the renovation or rehab costs. Of course, the amount of cash needed by the borrower to close is determined by the size of the transaction.
Depending on the state, some states we require that you hold title in an entity. Some title can be held in an individual’s name. Please contact us with your deal here and we will let you know if an entity is needed or not.
At Optimus Capital, we fund the rehab or renovation costs “as drawn upon” meaning it’s based on completed work. You start the rehab, complete work and then request a “draw” from our Processing Dept.
Usually we fund 100% of the rehab or renovation costs. It can vary on the program as well as the profitability of the deal. However, most deals funded involving rehab at Optimus Capital receive 100% of the renovation costs.
The draw process is simple. You can receive multiple draws as you complete the project or you can complete all of the work and request a draw for the total amount. Whenever you need a draw, simply contact the Optimus Capital Processing Dept. and they will send you the needed items to complete. You will be in contact with this department as your deal closes, so you will already have their contact information when the time comes to request a draw.
At Optimus Capital, we have a dedicated team standing by to assist you. You can submit a new deal here. You can also call us at 916-414-8861. We can also be emailed at email@example.com. Someone from our dedicated team will contact you promptly.
If you complete this simple form, someone will contact you shortly and help assist you to the fullest.
One of our dedicated professionals will be in communication with you the entire time through the transaction.