Property Bridging Finance

9. Property Bridging Finance

One of the great benefits to buying and selling property is it having access to a bridging finance loan. No, it’s not a bridge that you ride over, but it just might help you ride over your debts!

Property Bridging Finance Loan Examples

Let’s just say for example that you found a property that you want to purchase and you are a first time buyer. You’ve heard about flipping properties and while you’re not sure that you want to actually flip a property you do want to make an investment. With a bridging loan, the benefit here is that you can use the money as a down payment and let’s say that you go ahead and you buy that house but you still have your old property that you were living in. Of course, if you’re trying to sell that property, that’s where the bridging loan can come in and help. Its a way to help you get money towards one new property while you close out the old one. Because we know the closing costs can be a hassle and it can take time for you to get through the closing process – sometimes it can take several months, that’s why you want to ensure that you have the financing that you need in place.

Another area where property bridging finance can help you is if you want to buy a property and you want to sell it but it needs a few repairs. Let’s just say that you want to do this to several properties that you found as they make great investment properties that you think you can fix up and sell. This is a great deal, you know it. They just need a few upgrades and repairs. Use a property bridging finance loan.

With a property bridging finance loan, you can actually use the money to make the upgrades and repairs. Maybe there’s an issue with plumbing, maybe the properties need new roof repairs, or just a couple of patches like a paint job here, a sanding and new paint job there, and things that will really improve the property value. For that piece of property, you know you will make a profit. The property bridging finance loan you can rest assured that you’ll be able to make the purchases, get the equipment that you need, have everything repaired, get all the upgrades done, and make the home improvements. When you sell the property and you can pay off your bridging loan. It’s that simple!

Another area where property bridging finance can help is if you are a company that has purchased several properties in several pieces of land and your building homes on that land. You’re developing a community you can actually use a property bridging finance loan

to help you to pay for equipment, to pay salaries to your staff and contractors, to get everything that you need in terms of financing, so that you can get the property finished and get your project completed and people into their homes. As buyers come in and they start purchasing the property or they start renting or leasing it out, then you can pay off your property bridging finance loan.

Questions to Ask When You Set Up a Property Bridging Finance Loan

You want to talk about the interest rate and the term when you set up your loan. You want to ensure that there is not an initiation fee and if there is how much the amount will come out to. You then want to ensure and discuss the terms you want and go over any type of collateral you many need for your property bridging finance loan. if you need any other information or if you have any questions, you can contact us today and we can help set you up with a representative who can walk you through terms and agreements and start processing your loan. This is the kind of bridge you want to cross – a successful one!