How To Use Bridging Finance To Buy an Investment Property
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- čas přidán 29. 06. 2024
- #bridgingfinance #finance #investmentproperty
Please note this is not financial advice
In this video, we explore the ins and outs of using bridging finance to buy an investment property and how much it has cost us to do so. Bridging finance offers flexibility and speed, allowing you to be ready for when you find a deal without waiting for lengthy mortgage approvals. We discuss the benefits, considerations, and practical steps involved in utilising bridging finance. Not forgetting the most asked question we have had which is about how to pay off a bridge. Whether you're a seasoned investor or new to the property market, understanding how to leverage bridging finance can open doors to opportunities you might otherwise miss out on.
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Finally, someone that has fully explained bridging finance.
Great video! The explaination of what a bridge loan is was wonderfully articulated. Keep it up, love your content!
Thank you for this video - first time I've seen bridging loans explained clearly and how (re) payments work in particular 🎉
Just gave this a like because this video was perfect.
I must also say - its great seeing couples working and building together.
Wonderfully Explained.
Thank You
I love you Guys! You both are brilliant.
Hi Lia and AK. Thanks for the information.
Thanks guys again for the content 👍🏽
Probably worth mentioning for the audience that the interest on a bridge does not have to be retained by the lender, it could also be “rolled or capitalised” where it’s added to the loan and paid off at the end or “serviced” where it’s paid off every month and I’ve used both options
Was going to say the same thing! Another enjoyable video though
Awesome thank you Andy, we will be sure to mention these options in our next bridging video and credit you as that's super helpful for people to know.
Cheers
Great content thanks as usual 🙏 Would be interesting to have a video on the choice of acquiring a property with a company or directly !
Thank you for explaining Bridging Loan clearly
Glad it was helpful!
Wow. Thanks for sharing this!
Our pleasure!
So on your first ever bridging deal, how much did you need to have upfront to secure the funding for the purchase of the property?
Is it possible to go from 1 to 10 investment properties in 5 years? And how much capital would i take to scale in this portefolio size?😊
Another advantage is that bridging is the same as “cash buying” and can be used for negotiating, as speed can motivate sellers a lot!
Can you please talk about development finance
In your example you borrow 75k to get to the 100k. But as you sed before you never see the full amount of the loan due to fees and them taking out there interest cost all upfront so now you don’t have enough you buy the house? How does that work?
Brilliant video guys. Are you essentially using the bridge to buy the property and renovate it or just renovate it ?
Bridging to complete the purchase and renovate
explained beautifully
Thank you 🙂
Hi Guys, just a couple of questions, as they take the interest and fees upfront, do you need to borrow extra to account for this? Also, can you borrow money for a renovation as well?
Thanks
You need to ensure you have enough to cover what you need from a net perspective. You can borrow more if the numbers work eg if you’re able to repay the bridge in refinance.
Interesting and not sure if they do that in the US. It would make sense if they did.
They must do so
So a bridging loan can only be 75% of the purchase price so you still need to fund the other 25%… so no good if you don’t have that 25% deposit… this our current position :(
Are you from Bangladesh
I was looking to get a bridge loan to buy a new house before we sold our old house. I was told that bridge loans are almost non-existent at this point. I didn't ask about the possibility at $5M, though. So I went for a second mortgage which I will pay off when our old house sells. This is in the USA.
Whats your skincare
What kind of property can I buy with £60,000 in cash.
Thank You
Why don’t you look on rightmove lol
A bridge could give you 75% loan to value, so as a quick example, a property costs say £240,000, you or your investor could put in £60,000 and get a bridge of £180,000 to do any renovation etc, before flipping it or putting a mortgage on it and pulling your cash out/paying back your bridging loan. So with £200k + you could buy what you want.
6:18 0.80% x 82,500
This is madness and frankly dangerous advice. Leveraging in a falling market with little capital growth is nonsense.
Hence why it's imperative to do your due diligence and number crunching through n through ...of course its possible
Quick answer: don’t.