Bridge financing in Spain does NOT mean the construction of a traffic route over water. But a so-called bridge loan , short-term interim financing.
There are many reasons for bridging financing. The most common are: buying a new property even though the old property has not yet been sold. The purchase of a plot of land up to follow-up financing through a bank . Raising capital to pay off heirs. And often also the taking of funds to pay for a renovation before the sale.
Optimal use of bridge financing in Spain
Bridge financing is more expensive than normal real estate financing . That’s why you shouldn’t run for more than two years. The funds often come from private investors who receive security on the property in return. The interest is between 5% and 10% per year. Especially when it comes to crowdfunding on Mallorca , we are talking about short terms. Crowdfunding campaigns create a win-win situation for both the borrower and the lender.
There is no alternative for the borrower: either he does not invest or he pays exceptionally high interest rates for a short term.
For the lender there is a high interest rate with a short term and security on the ground.
Would you like to learn more about the topic?
Are you an investor and would like to earn good money with bridge financing? Then talk to me. Are you a property owner and would like to finance a project in the short term? Then send me an email with the key data of the planned operation.