Bridging loan

lrthouse

Hi all first post on here.


little background info, me and my brother decided earlier this year to get involved in property. We both have our own mortgaged houses and have lent money from our grandparents to buy a house and rennovate. We are nearing completion and are looking into our next property.


The question bieng asked is should we look at a bridge loan to enable us to buy another property to get on with whilst the other one is up for sale or is there another option.

dimbo61

Why not finish the work and sell your current property first.
You will then know how much you have to spend after selling costs and Taxes

eddddy

I guess your options are a loan secured on property or find an investor.

The secured loan could be:

- A commercial bridging loan (i.e. secured on your current or new property), or
- Development finance (i.e. secured on the new property)


Or if you find an investor, the terms are down to negotiation (e.g. charges on your properties, name on deeds, assignment of first born child in eternity, etc)


But I would be a little cautious. On the basis that you have only developed one property (which isn't yet sold), and have no experience of raising business finance, it may be better to wait until your current property is sold - so you can fully review where you are.

Argghhh

and if your property doesnt sell? bridging loans are mega expensive - look at other options or wait till its sold

G_M

Clearly you are enthusiastic and have put together a successful development business between you. Why hang about?

Get the money together and start hanging out at the aucions.

lrthouse

Thanks guys, the last thing we want to do is get a loan really... but after buying this house which effectively took us near 3 months to find and complete sale we are a bit concerned that we could be waiting round a long time again for the next one.

As im sure you all know that time is money with houses and we are looking to buy 2-4 property's per year to run as a business otherwise ill never be able to quit my job haha.

We have thought about maybe a small business loan each but not sure that would be the right choice either.