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Could you be a ‘cash buyer’?

bridging finance May 30, 2019

Before you stop reading because you don’t think your bank balance is big enough to buy property for cash – STOP!

Have you noticed that cash buyers always get the best deals?  It’s those magic words “What discount will I get for cash?”  Whether that’s buying a car, a new washing machine or a suit, cash buyers often pay less. 

Unfortunately, property is such a big-ticket item that cash buyers are few and far between.  The perception is that you need at least a six-figure bank account to even consider becoming a cash buyer.

This belief leads many property investors to ignore or miss out on the best deals.  They think they simply don’t have enough in the bank.

A cash buyer can buy unmortgageable properties (although some should be avoided).  There are some really good opportunities to build your property investment, but they’re only available to cash buyers.

So how can you become a cash buyer without a big bank balance?

That’s simple – bridging finance.

Before you start into the ‘it’s expensive’ argument, let me ask you a question: if you had the choice between no deal at all or a deal where you make 40% profit – why wouldn’t you want to do the deal?

Bridging finance coupled with smart negotiation can result in much bigger profits than the traditional BTL mortgage route.  With the right lenders you can:

  1. Borrow against the VALUE of the property, not the purchase price.
  2. Buy unmortgageable properties with substantial profit locked into them.
  3. Make outrageously low offers to vendors – because they know that they will have to give a discount for cash, and cash buyers are rare creatures.

Yes, the interest rates on bridging finance are higher than traditional mortgages – but the opportunities it opens up to you mean you can buy properties like a cash buyer, quickly, cheaper and make much more profit - even with the increased interest charges. 

So few people ‘get’ bridging finance and cash buyers are a rare species – so the field is open to people who can see the opportunities and use bridging finance intelligently.

What do you need your own cash for?

If you’re borrowing against the value of a property and you negotiate the price down (sometimes as low as 50% BMV) you can buy higher value properties with as little as 10% of the property value as deposit.

If you learn how to buy fast, you can start putting your exit strategy in place (and getting your money out) even before completion.

If you’re really smart you can get 100% of the purchase price – leaving your own cash for the refurb.

Bridging should be the first choice of a savvy investor, not the last resort of the desperate investor.

You can learn more here:


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