There are distinct differences between financing a commercial real estate investment and purchasing residential real estate. Generally, commercial real estate requires a far more significant financial commitment than residential real estate, due to the size and nature of office buildings, retail developments and multi-family properties. This means that the conventional lending options can be difficult for the average investors to utilize, and increasing regulations have only made it more challenging for commercial investors to go the tried-and-true route.
Now, creative financing is becoming the norm, and bridge loans are the lending option of choice for many commercial real estate investors.
What is a Bridge Loan?
According to the National…