Arizona Private Money Lenders: Bridge Loans Help Investors Buy With Bad Credit

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( — April 22, 2013) Phoenix, AZ — Bridge loans have been gaining in popularity recently, due to the amount of benefits they bring for the smaller time investor and for people with credit issues that will be falling off their credit report within 6 months or less.

So what exactly is a private money bridge loan?  It is a temporary loan typically with a higher interest rate that allows a buyer with bad credit to purchase a home at today’s lower prices.

Using a bridge loan only works when the buyer will have the bad credit ding drop off within 6 months or less. Then the home owner just refinances their home into a traditional mortgage which is much easier than securing a purchase money loan from many banks these days.

In fact Mike Swerlyk of the LM2 Investment Group was recently quoted as saying “Bridge loans allow much more flexibility for the smaller investor to break into the investment property business either as a “flipper” or to rent as an owner.”  LM2 Investments in Phoenix, Arizona has been providing these loans for the past few years with a very high success rate.  

Mike Corgiat of the LM2 Investment Group also affectionately known as “Mike 2” in the hard money lending circles of Scottsdale Arizona said “In this current economy, it’s not easy for the average person to buy into the real-estate market especially if their credit is rebounding.  Many people having low to middle incomes are usually not given a chance, due to the (big pocket) spenders throwing down a huge cash down payment on a home.  Bridge loans can help even out the playing field, so to speak.”

To recap, you should only use a bridge loan from a private money lender when you know that your credit score will rebound within 6 months. These loans typically come with an interest rate close to 10% or even 12%, but used wisely they allow a person to buy at today’s lower prices and then refinance down the road.

Most home owners who use private money loans will only make a monthly payment on the interest of the loan, taxes and insurance.


For more information on bridge loans in Arizona:

Mike Corgiat

LM2 Investment Group

480-444-2242 – Office

9160 E. Bahia Dr. Suite 105
Scottsdale, AZ 85255

Mike Corgiat on Google Plus

Media Contact:

Mark Stafford – Arizona Social Media

Phone: 623-252-1876