# Bridge Loans for Real Estate Investors Explained | KREC

*How investor bridge loans work, when they beat waiting for long-term financing, what they cost in dollars, and how to plan the exit before you close.*

## Bridge Loans for Investors: Closing When the Deal Can't Wait

A bridge loan buys you speed and flexibility for a few months. Here's when it makes sense, what it costs and why the exit plan matters most.

Short answer

A bridge loan is short-term financing, often 6 to 24 months and interest-only, used to buy or reposition a property quickly before moving to long-term debt or selling. It usually costs more than a long-term loan, so it works best when speed or flexibility earns more than the extra cost, and when the exit is clear from day one.

Key points

- Short term, usually interest-only.
- Costs more than long-term debt.
- Plan the exit before you close.

### When investors use a bridge loan

- **Speed:** closing before a long-term loan could, to win the deal.
- **Condition:** buying a property that won't qualify for long-term financing yet.
- **Timing:** buying the next property before selling or refinancing the last one.
- **Repositioning:** leasing up or renovating before a refinance.

### What it costs

Bridge loans usually carry higher rates and points than long-term debt. Do the math in dollars for the time you'll actually hold the loan.

**Deal sheet: $500,000 bridge loan held six months, illustrative**

|  | Amount |
| --- | --- |
| Interest, 10% for six months | $25,000 |
| Points, 2% | $10,000 |
| **Cost of the bridge** | **$35,000** |

If closing fast or repositioning the property earns more than that, the bridge pays for itself.

> Under contract or about to offer? Send the numbers and we'll size the loan before you commit. [Size my loan](https://keyrealestatecapital.com/contact)

### Plan the exit first

- **Refinance** into a DSCR loan once the property is stabilized; see [from flip to rental](https://keyrealestatecapital.com/blog/refinance-flip-into-rental).
- **Sell**, with realistic timing and selling costs.
- **Extend**, but know the cost and conditions before you need to; see [refinancing out of hard money](https://keyrealestatecapital.com/blog/refinance-out-of-hard-money).

### Frequently asked questions

#### How long is a bridge loan?

Investor bridge loans commonly run 6 to 24 months, often with extension options for a fee.

#### Are bridge loans interest-only?

Most are. You pay interest during the term and repay the principal when you sell or refinance.

#### When is a bridge loan worth the cost?

When speed, flexibility or the chance to reposition the property earns more than the extra interest and fees over the time you hold the loan.

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### Related Articles

Hard money loans offer fast, flexible financing for real estate investors. Learn how they work, when to use them, and what to expect.

Everything you need to know about fix and flip financing, from loan terms to maximizing your profits on renovation projects.

How DSCR loans qualify a rental on its rent instead of your income: the formula, a worked example, what lenders check and a five-minute self-test.

### Ready to Apply What You've Learned?

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## Article Metadata
- **Headline:** Bridge Loans for Investors: Closing When the Deal Can't Wait
- **Published:** 2026-10-27
- **Author:** Key Real Estate Capital

## Frequently Asked Questions

### How long is a bridge loan?

Investor bridge loans commonly run 6 to 24 months, often with extension options for a fee.

### Are bridge loans interest-only?

Most are. You pay interest during the term and repay the principal when you sell or refinance.

### When is a bridge loan worth the cost?

When speed, flexibility or the chance to reposition the property earns more than the extra interest and fees over the time you hold the loan.

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