A bridge loan is a short-term real estate loan that helps investors “bridge the gap” between transactions. It provides quick capital for acquisitions, refinances, or transitions while waiting for longer-term financing or a property sale to close.

Bridge loans are especially beneficial in competitive real estate markets where timing is everything. Traditional loans, like DSCR (Debt Service Coverage Ratio), SBA, or bank mortgages, often involve lengthy approval and underwriting processes. Bridge financing, on the other hand, allows borrowers to act quickly on investment opportunities that require fast closings or immediate funding.