ABOUT THIS EPISODE
Bridge loans explained: how to buy your next rental before you sell the one you already own. Here is exactly how the equity gets unlocked.
In this episode, Ryan lays out the entire bridge loan model in the first minute, then walks through each piece. A bridge loan borrows against the equity you already have in your current rental, typically 70 to 80 percent, so you can move on a new deal now instead of waiting months for a buyer.
He covers how the loan is secured against your existing equity, what it actually costs to carry (short-term, interest-only, 6 to 12 months, and the rate premium you trade for speed), the two ways you pay it off (selling the old property or refinancing the new one), and exactly when a bridge loan is the right call versus when it turns a good deal into a stressful one, including how it is different from hard money.
He closes with the four-step framework: confirm your real usable equity, line up the new deal's numbers against the carrying cost, have a real exit, and budget for both payments for the full term.
Know your usable equity, know what it costs to carry, and know your exit before you use a bridge loan.
