How To Use Bridging Finance To Access More Profitable Deals In Less time.

In this short video we talk about how to crunch the numbers with Bridging Finance so you can take advantage of this great tool, and unlock profits that traditional mortgages cannot.

When evaluating the use of Bridging Finance for your property deal it doesn’t need to be too challenging. You simply want to add this to your cost analysis as you would have with a mortgage. Ideally you want to get to an “all in fee” here. A sensible approach could be to factor in best and worst case scenarios, for example, plan for a quick turnaround but also evaluating what a 9-10 month turnaround could look like for your particular deal. Is there still profit in the deal at that kind of timescale, supposing your exit onto a mortgage was slightly delayed?

Typically this finance option is going to run for 6-12 months. We break down the various costs that you want to consider in the video, but much of this is no different to analysing a typical mortgage driven acquisition, solicitors fees, survey etc, as previously mentioned.

We really want to get certainty on figures so you can plug in a pennies and pounds figure to steer your decision making process.

Ultimately the powerful side of this is that you can use Bridging Finance to get into deals that otherwise wouldn’t be viable and “condense time”. Therein lies the profits, but please make sure you do your due diligence, run the figures and have a solid exit for this mode of finance.