Bridge Loan: Realtor Closes on Third Investment Property Before Selling First Rental

Jessica R., a 44-year-old successful real estate agent in Fort Lauderdale, had spent 18 years building her real estate business while simultaneously building a rental property portfolio. She earned approximately $195,000 annually from real estate commissions and owned two rental properties generating combined monthly income of $5,200. As an active investor (Step 6 in her financial journey), Jessica had a clear strategy: build a portfolio of seven cash-flowing rental properties by age 55, creating substantial passive income that would eventually allow her to work in real estate by choice rather than necessity.

Jessica had identified the perfect third investment property—a three-bedroom, two-bathroom home in Oakland Park listed at $425,000 that would generate strong rental income in a rapidly appreciating neighborhood. The property had multiple offers, and the seller wanted a quick 21-day close. Jessica’s first rental property, which she’d owned for eight years, had appreciated significantly and was under contract to sell for $485,000 with a 45-day closing timeline.

The timing problem was clear: she needed to close on the new investment property in 21 days, but wouldn’t receive proceeds from selling her first rental for another 45 days. She had substantial equity across her properties and strong income from both her real estate business and existing rentals, but she needed temporary financing to bridge the 24-day gap between purchasing property #3 and selling property #1.

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Why Couldn’t Jessica Use Traditional Financing for This Time-Sensitive Opportunity?

Jessica approached two traditional lenders hoping for a quick solution to her timing challenge. She had a 746 credit score, strong income from real estate commissions, two rental properties generating $5,200 monthly, and substantial equity in the property she was selling. The math was straightforward: after selling property #1, she’d have more than enough proceeds to fund the purchase of property #3.

Both traditional lenders said they couldn’t help with her timeline.

The first lender explained that a conventional mortgage for the new investment property would require 30-45 days to close, missing the seller’s 21-day deadline. Even if she could negotiate an extension, qualifying for a third mortgage while still owning two rentals would be challenging from a debt-to-income perspective—traditional lenders would count all three mortgage payments against her income ratios until property #1 actually sold.

The second lender suggested waiting until property #1 closed, then purchasing a different investment property with the proceeds. But Jessica knew from her 18 years in real estate that perfect investment properties don’t wait—this Oakland Park home was well-priced in an appreciating area with strong rental demand. By the time property #1 closed in 45 days, this opportunity would be gone and she’d be searching for another property in a competitive market where prices kept rising.

“I was incredibly frustrated because the solution seemed obvious from a financial standpoint,” Jessica explained. “I’m selling property #1 for $485,000, and I only owe $165,000 on it. That means I’ll net over $300,000 from the sale after paying off the mortgage and closing costs. Property #3 costs $425,000, and I have funds for the initial investment from savings. I just needed temporary financing for 24 days until property #1 closed and I could pay off the bridge financing. But traditional lenders couldn’t move quickly enough or wouldn’t structure financing that recognized my specific situation.”

The timing constraint was real and non-negotiable. The seller had multiple offers and wouldn’t extend the closing deadline. Jessica had three weeks to secure financing and close, or she’d lose the property to another buyer—likely another investor who would capture the rental income and appreciation that Jessica had identified as part of her wealth-building strategy.

“This wasn’t just about one investment property—it was about staying on track with my portfolio-building timeline,” Jessica said. “My goal is seven properties by age 55. I’m 44 now with two rentals. I should be acquiring property #3 this year, then #4, #5, #6, and #7 over the next 11 years. Missing this opportunity wouldn’t just cost me this property—it would delay my entire wealth-building plan by 6-12 months while I found another comparable investment. Those delays compound. Every month without this third rental is a month of lost income, lost appreciation, and delayed progress toward financial freedom.”

Jessica needed a financing solution that could close in 21 days and would be paid off in 24 days when property #1 sold—exactly what bridge loans are designed to provide.

Experiencing similar timing challenges with investment properties? Schedule a call to discuss bridge loan solutions.

How Did Jessica Discover Bridge Loan Financing?

Jessica mentioned her timing dilemma to another investor-focused real estate agent in her brokerage who had faced a similar situation two years earlier. Her colleague explained how a bridge loan had allowed her to close on a new investment property before her existing property sold, using the equity in the property being sold as collateral for the temporary financing.

Given her real estate expertise, Jessica immediately understood the concept and scheduled a consultation with a loan advisor specializing in bridge loans for real estate investors. She wanted to understand the structure, timeline, costs, and payoff process.

The conversation confirmed this was exactly the solution she needed. The advisor explained that bridge loans provide short-term financing—typically 6 to 12 months—specifically designed for situations where borrowers need to purchase a new property before selling an existing one. The bridge loan would be secured by the property she was selling (property #1) and potentially by the new property (property #3), providing temporary financing that would be paid off when property #1 closed in 45 days.

“The structure made perfect sense for my situation,” Jessica said. “The advisor explained that they would evaluate the equity in property #1 that’s under contract to sell, verify my income from real estate commissions and rental properties, confirm the pending sale contract, and approve short-term financing that I’d pay off in less than a month. It was exactly what I needed—fast approval, quick closing, and a clear exit strategy when property #1 sold.”

The advisor also explained that bridge loans work particularly well for real estate investors and agents who understand property values, have strong equity positions, and face timing gaps between buying and selling. Jessica’s situation—solid equity, confirmed sale contract, and 24-day gap—represented a textbook bridge loan scenario.

Jessica learned the bridge loan would close in time to meet the 21-day deadline for property #3, and she’d pay it off completely 24 days later when property #1 closed. The short-term financing cost would be offset by capturing the investment property she’d identified—a property that would generate rental income and appreciation for years to come as part of her seven-property portfolio strategy.

What Documentation Was Required for This Bridge Loan Approval?

Jessica worked with her loan advisor to assemble the required documentation for a bridge loan application. Unlike traditional mortgages requiring extensive income verification, bridge loans focus on equity position, exit strategy, and ability to repay from the pending sale.

Documentation provided:

• Signed purchase contract for property #3 ($425,000 investment property in Oakland Park)
• Fully executed sale contract for property #1 ($485,000 sale with 45-day close)
• Current mortgage statement for property #1 showing $165,000 balance
• Proof of buyer’s financing approval for property #1 (confirming likely close)
• 746 credit score with perfect payment history on all properties
• Tax returns and 1099s showing $195,000 annual real estate commission income
• Rental income documentation from properties #1 and #2 ($5,200 combined monthly)
• Bank statements showing reserves and funds for initial investment
• Appraisal or BPO confirming property #1 value supports sale price

The approval process:

1. Initial consultation (Day 1) – Discussed bridge loan structure and timeline requirements
2. Document submission (Day 2) – Uploaded sale contract, purchase contract, and financial docs
3. Equity and exit strategy verification (Days 3-5) – Lender verified property #1 value and sale contract
4. Income and credit review (Day 6) – Confirmed commission income, rental income, and credit
5. Conditional approval (Day 7) – Approved pending title work and final verification
6. Title and legal review (Days 8-10) – Title company prepared closing documents
7. Final underwriting (Days 11-12) – Verified all conditions satisfied
8. Clear to close (Day 13) – Final approval issued
9. Bridge loan closing (Day 16) – Funded bridge loan secured by property #1 equity
10. Property #3 purchase closing (Day 19) – Closed on investment property using bridge funds
11. Property #1 sale closing (Day 43) – Property #1 sold, bridge loan paid off completely

The lender approved Jessica for bridge loan financing based on the substantial equity in property #1 (approximately $315,000 after paying off the $165,000 mortgage from the $485,000 sale price) and the confirmed sale contract with a qualified buyer. The bridge loan provided the temporary capital Jessica needed to close on property #3 while waiting for property #1 to close.

“The process was remarkably fast and focused,” Jessica said. “The loan advisor understood that time was critical—I had 21 days to close on property #3. They didn’t require extensive income verification or complicated underwriting because the loan was secured by substantial equity and had a clear 45-day exit strategy when property #1 sold. They evaluated what mattered: solid equity position, confirmed sale contract, strong credit, and clear ability to repay from the pending sale proceeds.”

The entire bridge loan process took 16 days from application to funding, allowing Jessica to close on property #3 on day 19—within the seller’s 21-day requirement. Twenty-four days later, property #1 closed as scheduled, and Jessica used the sale proceeds to immediately pay off the bridge loan, completing the transaction exactly as planned.

Ready to explore bridge financing for your investment? Submit a purchase inquiry to discuss your scenario.

What Were the Final Results of This Bridge Loan?

Jessica successfully executed her investment strategy using the bridge loan to navigate the timing gap between selling property #1 and purchasing property #3. The short-term financing allowed her to seize a time-sensitive investment opportunity that would have otherwise been lost.

Final bridge loan structure:

• Bridge loan amount: Based on equity in property #1 being sold
• Properties involved: Property #1 (being sold) and Property #3 (being purchased)
• Timeline: 16 days to bridge loan funding, 24 additional days to payoff
• Exit strategy: Payoff from property #1 sale proceeds
• Property #3 details: $425,000 investment property in Oakland Park, FL
• Property #1 sale: $485,000 sale price, closed 45 days from original timeline
• Expected rental income (Property #3): $2,700/month

Timeline execution:

• Day 1: Bridge loan application submitted
• Day 16: Bridge loan funded
• Day 19: Closed on property #3 using bridge loan funds
• Day 43: Property #1 closed, bridge loan paid off completely from sale proceeds
• Total bridge loan period: 24 days from funding to payoff

Strategic outcome:

• Investment property acquired: Successfully purchased property #3 without missing opportunity
• Portfolio growth on track: Three properties now generating combined rental income
• Wealth-building timeline preserved: Stayed on schedule for seven-property goal by age 55
• Financial position improved: Property #3 generating $2,700 monthly rental income

Jessica closed on property #3 exactly as planned, secured a qualified tenant within three weeks paying $2,700 monthly, and paid off the bridge loan 24 days after receiving it when property #1 closed. The short-term financing cost was minimal compared to the long-term value of capturing the investment property—a property that will generate rental income, build equity, and appreciate for years as part of her portfolio.

“The bridge loan enabled me to execute my investment strategy exactly as planned,” Jessica explained. “Without it, I would have lost property #3 to another buyer, then spent months searching for a comparable investment in a competitive market where prices kept rising. Instead, I now own three rental properties generating combined monthly income of $7,900. That’s $94,800 annually in rental income, plus I’m building equity in three appreciating properties. This is wealth-building in action—property #3 is generating income and appreciation that will compound for decades.”

Jessica views this transaction as a critical moment in her portfolio-building journey. By using bridge financing to navigate a temporary timing gap, she stayed on track with her goal of seven properties by age 55. She’s already analyzing properties for acquisition #4, planning to continue building her portfolio strategically over the next 11 years.

When Jessica is ready to purchase property #4, she’s exploring whether to use traditional financing with more lead time or potentially leverage equity from one of her existing rentals through a HELOC or Home Equity Loan. This approach would allow her to access capital for down payments without selling properties and without timing constraints—another tool in her sophisticated real estate investing toolkit.

“The best part is understanding I have multiple financing options as I continue building my portfolio,” Jessica added. “Bridge loans for timing gaps, HELOCs for accessing equity, traditional mortgages when I have time, DSCR loans for properties I want to finance based on rental income. Each tool serves a purpose. This isn’t just about one property or one loan—it’s about building generational wealth through strategic real estate investing and using the right financing tool for each situation. Property by property, I’m building financial freedom for my family. That’s the legacy I want to create.”

Ready to get started with bridge financing? Get approved or schedule a call to discuss your investment timing needs.

When Should Real Estate Investors Consider Bridge Loans?

Bridge loans serve specific purposes in real estate investing and portfolio building. Understanding when this financing tool makes sense can help investors execute opportunities that would otherwise be missed.

Ideal bridge loan scenarios:

• Purchasing investment property before existing property sells (Jessica’s situation)
• Timing gaps between selling one property and buying another
• Competitive markets requiring quick closings (cash-equivalent offers)
• Portfolio repositioning (selling lower-performing assets to acquire better properties)
• 1031 exchange timing challenges requiring temporary financing
• Opportunities requiring faster closing than traditional financing allows

Bridge loan advantages:

• Fast approval and closing (often 2-3 weeks vs. 30-45 days for traditional)
• Secured by equity in existing properties
• Short-term solution (typically 6-12 months, often paid off much sooner)
• Enables seizing time-sensitive investment opportunities
• Preserves portfolio-building momentum and timeline

Important considerations:

• Higher costs than traditional financing (appropriate for short-term use)
• Requires clear exit strategy (sale proceeds, refinance, or other source)
• Best for borrowers with strong equity positions
• Typically involves substantial property equity as collateral

Have questions about bridge loan timing and structure? Schedule a call with a loan advisor today.

Alternative Financing Options for Real Estate Investors

If a bridge loan isn’t the perfect fit for your situation, consider these alternative financing options:

• DSCR Loan – Purchase or refinance rental properties based solely on property cash flow without providing personal income documentation
• HELOC – Access equity from existing properties through a flexible line of credit for down payments on future acquisitions
• Home Equity Loan – Fixed-rate second lien to tap equity for investment property down payments while preserving first mortgage terms
• 1099 Loan – For self-employed investors with 1099 income who take significant business deductions
• Bank Statement Loan – Ideal for business owners with consistent deposits but significant tax write-offs
• Asset-Based Loan – For investors with substantial liquid assets who want portfolio-based qualification

Explore all loan programs to find your best option.

Want to assess your complete financial picture and explore your wealth-building path? Take our discovery quiz to clarify your goals and next steps.

Helpful Bridge Loan Resources

Learn more about this loan program:

• Complete Bridge Loan Guide – Detailed requirements, timeline, and use cases for short-term financing
• Bridge Loan Calculator – Explore scenarios and estimate costs based on your equity position

Similar success stories:

• Browse all case studies by your journey stage and investment strategy

External authoritative resources:

• CFPB Mortgage Shopping Resources – Consumer protection information for homebuyers and investors
• NAR Investment Property Resources – National Association of Realtors guidance for real estate investors
• IRS 1031 Exchange Guidelines – Tax-deferred exchange information for investment properties
• Fannie Mae Investment Property Guidelines – Industry standards for investment property financing

Ready to take action?

• Apply online – Start your bridge loan application today
• Schedule a consultation – Discuss your specific timing needs and investment strategy
• Take the discovery quiz – Deep dive into your life, wealth, and purpose goals to clarify your financial path

Need local expertise? Get introduced to trusted partners including investment-focused realtors, property managers, and 1031 exchange facilitators in your area.