Definition

• Short-term financing designed to bridge the gap between the purchase of a new property and the sale of an existing one.

Ideal Borrowers

• Investors needing quick capital for property acquisition or transition.

Down Payment

• Varies; often 20-30% of the property’s value.

Benefits

• Quick access to funds;
• flexible repayment options.

Usage Limit

• Short-term use, typically 6 months to 3 years.

Strengths

• Facilitates timely transactions;
• useful for seizing immediate opportunities.

Considerations

• Higher interest rates;
• risk if the existing property doesn’t sell as planned.