The fact that you are not immediately required to sell your old home makes a bridge loan logical solution for people in relatively cold markets who need to act quickly in order to close on a new home.

Most people who get a bridge loan will use extra cash to pay off mortgage on old home, deduct any closing costs and prepaid interest, and put remainder towards a down payment on new home.

A bridge loan entails substantial risk for lender because old home may not sell for some time. Therefore, you can expect relatively high interest rates and short terms of six months to a year. The borrower usually begins making interest payments after end of term if old house still hasn't sold.

After old home sells, bridge loan is paid off. If house sells within term limit, all unearned interest is credited back to borrower.

Get Professional Bridge Loan Advice

Before you sign on any dotted lines, make sure lender you're working with has taken all time you need to explain bridge loan details to your satisfaction. Depending on your individual situation, securing a bridge loan can be somewhat complicated. Having a relationship of trust with your lender can help simplify process.

The copy center I use had a stack of Car Spa flyers.

The barber I use had a stack of Car Spa flyers.

The oil and lube place I use had a stack of Car Spa flyers.

The local handicraft shop my wife goes to had a stack of Car Spa flyers.

My son's dentist had a stack of Car Spa flyers in his office.

My local chiropractor friend had a stack of Car Spa flyers in his office.

An apartment complex office I visited had a stack of Car Spa flyers.

Everywhere I went, I saw a stack of Car Spa flyers. It was amazing. The have these little "referral lead generation magnets" all over place.

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So I Finally Visited Car Spa ______________________________

And it wasn't any surprise that they were so busy that it took about 15 minutes of waiting just to get my car into their car wash.

I then went inside their office to wait for my car and noticed that they did NOT have one flyer from another business inside their office.

They were able to get all those other businesses in area to send them referrals without having to do one reciprocal referral arrangement. And they did it simply by asking business owners. That's all.

Car Spa probably gets 100 times amount of referrals of any other business in area as a direct result of this simple referral tactic.

If you have a brick and mortar business, what's stopping you from doing same thing? All it takes is a couple of hours a day and a handful or referral flyers to pass out.