Speed is the reason most investors use a bridge loan: to win a property against cash buyers, to meet a short contract deadline, or to close before a seller changes their mind. For residential investment property between $1M and $5M, a realistic timeline is about two weeks from the signed term sheet to funding, when the file is clean. This page sets out what happens in those two weeks and what makes them longer.
The timeline, step by step
Several steps run in parallel. Nothing in that list is unusual; the timeline depends on each item being ready when it is needed.
- Day 0: you send the deal (address, price, plan, entity, exit)
- Within 24 to 48 hours: term sheet
- Days 1 to 3 after signing: appraisal ordered, title ordered, insurance requested, entity documents collected
- Days 3 to 10: appraisal inspection and report, title commitment, underwriting of the borrower and the LLC
- Days 10 to 14: final approval, closing documents, signing, funding
What makes a bridge closing slip
- Appraisal access: a tenant or seller who will not let the appraiser in is the most common single delay
- Appraisal value: a value below the contract price reduces the loan and forces a renegotiation or more cash
- Title: old liens, unreleased loans, boundary or probate issues
- Insurance: in coastal or flood-exposed markets, binding coverage can take longer than the loan approval
- The entity: an LLC formed late, not in good standing, without an EIN or without a funded bank account
- Documents: bank statements or a purchase contract that do not match the information in the application
How to close in two weeks
- Form the LLC and obtain its EIN before you sign the purchase contract, or the same day
- Open and fund the LLC's bank account early
- Arrange appraiser access with the seller as soon as the term sheet is signed
- Ask your insurance broker for a quote the day you go under contract
- Send a complete file at the start: contract, entity documents, bank statement, plan and exit
Foreign investors
A non-US investor closes on the same timeline if the US LLC is ready. The step that takes longest is usually the EIN: a non-resident applies with IRS Form SS-4 by phone, fax or mail rather than online. By fax the IRS generally issues it within four business days, by mail in about four weeks. The bank account follows the EIN, so start both before signing the purchase contract.
Does a renovation or construction loan close as fast?
Close to it, with more to review. A fix and flip or renovation loan adds a scope of work, a budget and an after-repair value to the appraisal, and a construction loan adds plans, permits and the builder. Those documents are what the lender reads to size the loan, so having them complete on day one is what keeps these files near the same two-week timeline. A bridge on a property that needs little or no work has the least to review, which is why it is usually the fastest of the three.
Bridge terms in brief
Passy Capital finances bridge loans from $1M to $5M, up to 80% LTV, on residential investment property: single-family, 2-4 units, condos and townhomes, small multifamily up to 9 units and SFR portfolios. The fee is 1% to 2% of the loan, paid at closing, with no upfront fees. Business-purpose and non-owner-occupied only.