Bridge loans are loans with a short maturity, usually less than 6 months. In connection with real estate investments, they are usually mortgage-backed. They are normally repayable at any time without additional costs. Interest rates are typically in the range of 0.5% to 1% per month, supplemented by a one-off arrangement fee. Bridge loans are usually arranged through specialised intermediaries. They have the needed contacts to find the right lender for the real estate investor. In addition, well-positioned intermediaries have the know-how to analyse the project, draw up the necessary loan agreements and handle the transaction in a coordinated manner with all parties involved, such as public authorities, specialised lawyers, etc. Experienced intermediaries have a short lead time. With qualified intermediaries, the turnaround time for suitable transactions from the loan application to the disbursement is very short, and usually amounts to a few days, even for large loan amounts.
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