Thanks guys again for the content 👍🏽 Probably worth mentioning for the audience that the interest on a bridge does not have to be retained by the lender, it could also be “rolled or capitalised” where it’s added to the loan and paid off at the end or “serviced” where it’s paid off every month and I’ve used both options
Hi Lia, watching this after attending the Lenlord webinar on the 29 Oct 24, overall very helpful video 👍🏾 but pls clarify; 0.08 x 82,500 = 6,600 not 660 unless I am missing something? And you did not explain what the standard 2% interest rate in the deal relates to at time stamp 7:40? Not a critique just seeking clarification. Thanks
Yes it is. The captial you will need will be down to the area and value of the properties. But, whether you have £100,000 or £1m you will run out eventually with normal BRR so it’s worth looking at ways to increase your cash, like flipping, to compliment this.
Hi Guys, just a couple of questions, as they take the interest and fees upfront, do you need to borrow extra to account for this? Also, can you borrow money for a renovation as well? Thanks
You need to ensure you have enough to cover what you need from a net perspective. You can borrow more if the numbers work eg if you’re able to repay the bridge in refinance.
So a bridging loan can only be 75% of the purchase price so you still need to fund the other 25%… so no good if you don’t have that 25% deposit… this our current position :(
In your example you borrow 75k to get to the 100k. But as you sed before you never see the full amount of the loan due to fees and them taking out there interest cost all upfront so now you don’t have enough you buy the house? How does that work?
I was looking to get a bridge loan to buy a new house before we sold our old house. I was told that bridge loans are almost non-existent at this point. I didn't ask about the possibility at $5M, though. So I went for a second mortgage which I will pay off when our old house sells. This is in the USA.
A bridge could give you 75% loan to value, so as a quick example, a property costs say £240,000, you or your investor could put in £60,000 and get a bridge of £180,000 to do any renovation etc, before flipping it or putting a mortgage on it and pulling your cash out/paying back your bridging loan. So with £200k + you could buy what you want.
I'm guessing they dont really interact with their viewers. There are so many questions and no answers from them. I would like to know some things as well. Guess i have a lot to add to the amount i have now before i even get a Bridging Loan. Beans on toast for the next 2 years for me.
Finally, someone that has fully explained bridging finance.
Great video! The explaination of what a bridge loan is was wonderfully articulated. Keep it up, love your content!
Thank you for this video - first time I've seen bridging loans explained clearly and how (re) payments work in particular 🎉
Thanks guys again for the content 👍🏽
Probably worth mentioning for the audience that the interest on a bridge does not have to be retained by the lender, it could also be “rolled or capitalised” where it’s added to the loan and paid off at the end or “serviced” where it’s paid off every month and I’ve used both options
Was going to say the same thing! Another enjoyable video though
Awesome thank you Andy, we will be sure to mention these options in our next bridging video and credit you as that's super helpful for people to know.
Cheers
Thank you for explaining Bridging Loan clearly
Glad it was helpful!
Hi guys. Have you done property course before you have started your property journey? would you recommend doing it? thanks
Just gave this a like because this video was perfect.
I must also say - its great seeing couples working and building together.
Wonderfully Explained.
Thank You
Nicely made video. Super useful!
Great content thanks as usual 🙏 Would be interesting to have a video on the choice of acquiring a property with a company or directly !
So on your first ever bridging deal, how much did you need to have upfront to secure the funding for the purchase of the property?
Hi Lia and AK. Thanks for the information.
An informative breakdown 👍🏿
can you recommend a reliable sourcing agent pls
Great video so glad I've found you both, I'm now subscribed too.
Hi Lia, watching this after attending the Lenlord webinar on the 29 Oct 24, overall very helpful video 👍🏾 but pls clarify; 0.08 x 82,500 = 6,600 not 660 unless I am missing something? And you did not explain what the standard 2% interest rate in the deal relates to at time stamp 7:40? Not a critique just seeking clarification. Thanks
its per month
Brilliant video guys. Are you essentially using the bridge to buy the property and renovate it or just renovate it ?
Bridging to complete the purchase and renovate
Also sorry if this is an obvious question but the deposit you have to cover as part of the bridge, you do get back at the end right?
Eerrr no mate u just have to mentally remove out ur profit
Is it possible to go from 1 to 10 investment properties in 5 years? And how much capital would i take to scale in this portefolio size?😊
Yes it is. The captial you will need will be down to the area and value of the properties. But, whether you have £100,000 or £1m you will run out eventually with normal BRR so it’s worth looking at ways to increase your cash, like flipping, to compliment this.
Do you pay the fee's before or when the loan is repaid ?
I love you Guys! You both are brilliant.
Hi Guys, just a couple of questions, as they take the interest and fees upfront, do you need to borrow extra to account for this? Also, can you borrow money for a renovation as well?
Thanks
You need to ensure you have enough to cover what you need from a net perspective. You can borrow more if the numbers work eg if you’re able to repay the bridge in refinance.
The best advice here is definitely to use a broker 💪🏻😉
How would I get into this without any experience or contacts? Isnt the bridging route dangerous?
Wow. Thanks for sharing this!
Our pleasure!
Another advantage is that bridging is the same as “cash buying” and can be used for negotiating, as speed can motivate sellers a lot!
This is a great point. As much as you’re not a cash buyer, I’ve beaten cash buyers with bridging for my clients so they are certainly quicker
Can you please talk about development finance
So a bridging loan can only be 75% of the purchase price so you still need to fund the other 25%… so no good if you don’t have that 25% deposit… this our current position :(
explained beautifully
Thank you 🙂
In your example you borrow 75k to get to the 100k. But as you sed before you never see the full amount of the loan due to fees and them taking out there interest cost all upfront so now you don’t have enough you buy the house? How does that work?
Because u need to have the money saved to cover the 12 months fees upfront
I was looking to get a bridge loan to buy a new house before we sold our old house. I was told that bridge loans are almost non-existent at this point. I didn't ask about the possibility at $5M, though. So I went for a second mortgage which I will pay off when our old house sells. This is in the USA.
Interesting and not sure if they do that in the US. It would make sense if they did.
They must do so
HOW CAN I CONTECT YOU?
Are you from Bangladesh
What kind of property can I buy with £60,000 in cash.
Thank You
Why don’t you look on rightmove lol
A bridge could give you 75% loan to value, so as a quick example, a property costs say £240,000, you or your investor could put in £60,000 and get a bridge of £180,000 to do any renovation etc, before flipping it or putting a mortgage on it and pulling your cash out/paying back your bridging loan. So with £200k + you could buy what you want.
6:18 0.80% x 82,500
Whats your skincare
I'm guessing they dont really interact with their viewers. There are so many questions and no answers from them. I would like to know some things as well. Guess i have a lot to add to the amount i have now before i even get a Bridging Loan. Beans on toast for the next 2 years for me.
This is madness and frankly dangerous advice. Leveraging in a falling market with little capital growth is nonsense.
Hence why it's imperative to do your due diligence and number crunching through n through ...of course its possible
Quick answer: don’t.
Like this, thank you.