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Why Short-Term Loans Are Critical
Speed kills in real estate. Sellers want quick closes. Auction houses require cash, no inspections. And in hot markets, if you don’t perform fast, you lose the deal.
As Than Merrill (FortuneBuilders) says:
“The best deals rarely wait. You need access to capital before opportunity passes.”
That’s why short-term bridge loans (30–60 days) are one of the most powerful tools for investors today.
What Are Short-Term Real Estate Loans?
Short-term real estate loans are fast, temporary funding solutions designed to cover:
- Purchase price (usually 100%)
- Closing costs
- Holding costs until permanent financing kicks in
They’re perfect for:
- Auction properties (cash required immediately)
- Wholesale flips where assignments aren’t allowed
- DSCR or hard money loans in process (takes 3–4 weeks to close)
Real-Life Story: Auction Deal in Atlanta
A client in Atlanta, GA found a foreclosure home at auction priced at $215,000.
- Auction required full payment within 24 hours.
- Investor had DSCR loan approved but underwriting needed 3 weeks.
- Without cash, they would’ve lost the property.
We funded 100% of the purchase price for 30 days.
Investor refinanced with DSCR loan in week 3.
Result: Property appraised at $280,000, and the investor built $65,000 instant equity.
Why Investors Use Short-Term Loans
- Speed – Funds wired in hours, not weeks.
- No Red Tape – Works when conventional or DSCR loans are delayed.
- Win Auctions – Cash-ready investors dominate foreclosure and courthouse steps.
- Bridge to Permanent Financing – Gives breathing room until DSCR, bank, or hard money is approved.
Challenges & Our Solutions
- High Pressure Deadlines – Auctions demand fast wires.
Our solution: Same-day approvals + funding. - Exit Strategy Risk – Must refinance within 30–60 days.
Our solution: We coordinate with DSCR/hard lenders to line up exit. - Carrying Costs – Taxes, insurance, and utilities add up.
Our solution: Funding can include short-term carry built into the loan.
Short-Term Real Estate Loans: Authority Backing
- Than Merrill on speed and capital (FortuneBuilders)
- BiggerPockets forums packed with threads on auction deals requiring immediate cash (Auction Investing Forum)
- Investopedia on bridge loans (Bridge Loan Definition)
FAQs
Q: How fast can short-term loans fund?
Same day in many cases, especially for auctions.
Q: Do I need collateral?
Yes, secured against the property being purchased.
Q: Can short-term loans cover 100% of the purchase price?
Yes — we fund purchase + closing costs in select deals.
Q: What if my refinance falls through?
We structure exit options, and in some cases extend funding to avoid losing the property.
