The advantage of short-term financing like this is that you can start building on a new project before you have even sold the existing project. You can use the money from the expected sale of the current project to help pay for the financing on a new project. This is a great method of working on new projects. However, there are problems here because if you cannot sell the property, then the loan, and all the money that you put into the new project, and all the proceeds from that, will have to go back to loan provider. You have to be very sure that you are going to sell the current property, or the loan has significant disadvantages.
There are also some advantages to the bridge financing loan in that you can start work on a new project without having even sold the first one. This can really give you a boost and a headstart on starting that new project. That means that when the current property is sold, you can move straight into the new property that you were building.
No doc loans are also an important part of the process, and people that are freelancers and self-employed can really make the most of this too. They can start to work on the most important documentation ahead of time so they can be more assured of getting a loan. They will have to show more proof that they can get the loan because they won't have much documentation. No doc loans are a little harder to get.