This strategy is something I teach as part of the Ninja Investor Programme and it’s often a revelation to my students. It’s all about being smart with your financing.
There are some criteria to take into account:
Bridging finance is ‘******* expensive!’ in most people’s minds.
This still largely true if you’re using it for its original purpose, buying a new main residence before selling your current one but that is a small percentage of the bridging market. Commercial use is the main way bridging is now used i.e. to make money on properties you don’t actually live in. ...
The first question I get asked whenever I mention bridging as an option for property investors is “Isn’t that expensive?” - usually accompanied by a sharp intake of breath!
My response is usually “Compared to what?”
If you’re planning to use bridging to finance your main residence, yes it is. The interest rates are higher than traditional mortgages....
When I mention bridging finance as a means of funding a property purchase most investors do that sharp intake of breath and, inevitably, say “Isn’t that expensive?”
Most people see bridging as an expensive option as the interest rates are much higher than a mortgage - but, for the smart investor, bridging is only expensive if you don’t use it intelligently.
There are many different types of bridging loan - the secret is knowing the difference and ensuring you get the one that best fits your investment.
Despite most people’s response to bridging being a sharp intake of breath, followed by the observation “Isn’t that expensive?”, bridging is actually a very effective way to finance an investment and has all kinds of...
If a property is advertised as CASH BUYERS ONLY do you skip past it or take a closer look?
If you’re in the fortunate position of having enough cash to buy properties outright you’ll know that there are some great bargains to get. Cash buyers never pay full price!
However, if your cash pot isn’t there yet, you may see properties tagged CASH BUYERS ONLY as not for you.
When you get an unexpected windfall, especially a substantial one, it’s not going to earn you anything sitting in your bank account. If you’re into property - or you see it as the means to get into property it’s easy to get carried away.
For arguments sake, let’s say you’ve just got £200K land in your bank account. If you mention ‘I’ve...
Everyone expects to get a better deal if they’re a cash buyer and it’s certainly possible to get some great property deals if you can offer cash, but it is heavily dependent on two things -
Can you recommend somebody who can help me with 100% bridging finance?
If you mean where you put nothing into the deal, that is not how bridgers work, except in exceptional circumstances. They always want a safety net built in so they can sell off the property quickly, if they need to, and recoup their money.
This means for virtually every deal you need to put up...
A property career often starts as a way to supplement your full-time income, these days known as a ‘side hustle’ or ‘the 5-9 job’.
Some people keep it that way, finding a couple of properties and letting an agency manage them, so the rental income pays for holidays and the occasional new car.
Some start off with that intention and then get bitten by the property...