International Journal of Research in Social Sciences

  • Year: 2018
  • Volume: 8
  • Issue: 1

Impact of bridge loan for property management in real estate sector

  • Author:
  • C. Ramanigopal, G Manickam, P.G. Thirukumaran, M. Padmasree
  • Total Page Count: 7
  • DOI:
  • Page Number: 120 to 126

*Professor and Head, Faculty of Commerce & Management, Vinayaka Missions University, Salem

**Department of Management Studies, VMKV Engineering College, Salem

***PG. Scholars, MBA in Real Estate Management, Department of Management Studies, VMKV Engineering College, Salem

Abstract

Property Management in Real Estate Management is an Art as well as Science and also a profession. Property based business needs lot of dynamism in decision making and financial resourcing. In such situation financial resources plays a major role in real Estate sector. Property management may come across financial crisis or financial short fall that may occur to complete a business transaction in real estate business irrespective of the business nature or size of the project. In Real Estate, the major market is housing market in which this is the most essential context the industry has to come across. This crisis may be for a very short duration. In general, resourcing a financial support for a short span of time will be a challenging one to procure in the financial market. Because, this financial support won't generate sizeable revenue to the financier, but it has to undergo the same volume of process to get the loan processed. This is the context, where the consumers are in need of a loan that can fulfill the financial support at a reasonable interest. This support is named as Bridge Loan or Bridge Financing. Bridge Loan provides developers, investors and landlords with the financial support. Consumer needs this support in order to deal with cash flow issues or to take advantage of an opportunity in a particular time-efficient manner. Because of its fast processing nature, Funds can be originated quickly that needs reduced due diligence required to procure. This bridge loan support for lenders is considered risky, and for borrowers it is considered as ‘relatively’ expensive. Bridging loan provides ads value to the borrower, the expense is often justified. Because, the volume of consumers in need, bridge loan is a major one. Hence, Bridge loan can create a massive business change in Real Estate Market. This study explores the maximum possible support and impact of bridge loan in Property Management in Real Estate Sector.

Keywords

Real Estate, Bridge Loan, Property Management, Investor, Borrower