Like most things, the devil is in the detail!  It is easy to get bridging wrong, and many do, largely because they blunder in thinking it is easy.  It is a simple way of funding deals, but you need to understand how it works.  I have been teaching how it works and how to use it intelligently at my Ninja Investor Programme workshops since 2013.

I call bridging counter-intuitive -...

Property investment tends to depend on you having worked hard to save a nest egg that will provide you with a deposit to buy your first property.  If you’re planning to get into property seriously, you’ll need cash for refurbs too.  Saving up takes time.

The challenge is that you need at least 25% of the cost of your chosen property as a deposit, in order to get a...

THE QUESTION

I've taken out a fair few mortgages in the past and I’m comfortable with that kind of finance.  I have no experience with bridging, so my questions are:

What are the key things to look for?

What would be considered a 'good' bridging deal?

What term would you normally look at, 3 months? 6? Is it easy to extend?

THE ANSWER

There are lots of advantages to using bridging...

The property investment industry is surrounded by doubting Thomases.  These are the friends and family who think that, while it was easy to make a fast buck prior to the credit crunch, property is now a mugs game. 

These people are not property investors - and never have been - but they know someone who lost their shirt.  Or more likely, someone who has heard of someone who lost...

THE QUESTION

I'm new to the property investment world and looking to get my first buy-to-let.  I have two questions:

1. If I buy with bridging loan and do a full refurb, can I remortgage earlier than six months?
2. If I'm buying with bridging loan can I say that I'm a cash buyer or should I just say that I’m using a bridging loan?

THE ANSWERS

Question 1:  You have always been able...

Successful property investment depends on knowing your stuff.  Going on what someone else has suggested is like doing business in a new country without doing any research!

When it comes to funding your investment you need to understand what a good deal really looks like and where to get the funding that allows you to work your way.

There’s no short-cut to doing due diligence

When you...

If you’re just setting off on your property journey you’ll almost always meet people who will tell you that property is a mug’s game.  These people are not in property, but they’ve plenty of tales of disaster, bankruptcy and people who have lost their shirt on a property deal that went wrong.  They may even be your family and close friends.

Of course, you know...

THE QUESTION

I need to find a bridger where I can borrow 100% purchase price. The property is being sold  20% BMV.

THE ANSWER

No commercially minded bridger will lend 100% of all costs.  Why would they take all the risk and rely on the borrower to get it right?  Legitimately they may ask, what is the borrower’s incentive to get it right when they won’t suffer...

Property investment is a proven way to gain a greater degree of control over your life.  This can mean different things to different people. 

• It might be that you want to create an alternative means of income to give you the freedom to leave your current job or career.
• It might be that you love what you do, but you want to create something for your own and your family’s future....

The degree of success you achieve in your property investment career is determined by your mind-set; by your ability to take action, to get you from where you are now to where you want to be.

Education is vital too, as it gives direction to your actions, but that counts for little if you never put your knowledge into action.  

“To know and not to do is really not to know.”

So...