The property market is presently buoyant and at present, having the ability to buy a property, refurbish it and then refinance is fast becoming a popularstrategy. Still, in order to be successful in this approach, being able to find a property at a good price pretty quickly is crucial. At the same time, being able to secure the funds needed to make the purchase is also essential. Since not everybody will have deep enough pockets to have ready cash handy, bridging loans by Richard Butler Creagh comes in.
Bridging finance is quite useful to people that require easy and fast access to a secured loan for a short term. Most of the time, it is used to overcome a certain issue that a borrower is facing but most of the time, it is used to help complete a property that the borrower is interested in buying, this is what makes it a useful option for propertyinvestors and developers who often find themselves needing to make quick purchases on houses and otherproperties that they have the intention to refinance or sell in a very limited time-frame. Below are somereasons why it is quite an ideal choice.
Perhaps the most popularattribute of this type of loan is that it is fast. They are most effective tools if one is in need of some quick means of getting his hands on some capital. Many times, the moment that you find an ideal property to add to your investmentportfolio, you will only have a limited amount of opportunity to get the sale completed. This is especially true if what you have in mind is a property that is being offered for a very attractive price.
As a financing solution that is meant for the short term, it means that the borrower availing of the loan can get access to much-needed finances quicker especially when compared to other borrowing forms. This is also one way ofensuring that you will have the funds you need before the deadline that you have been given to complete the purchase is up.
There is also the matterof flexibility. Bridging loans tend tooffer more flexibility when compared to other more traditional loans. Most mainstream lenders would require their borrowers to provide with more information. This means needing more detailedinformation about your credit history and your income before they will approve the loan. In the event that you fail to meet the criteria that they have set, the application will be disapproved.
On the other hand, bridging lenders will only need to know about the property that is going tobe used to get theloan secured. The terms of the repayment can also be tweaked to suit you best. However, it is important to remember that as a short-term loan, there is often a need for you to get the money repaid within a year. When availing of a bridging loan, it is always important to remember that while its flexibility is quite fantastic, ensuring that an exit strategy is firmly put in place will ensure that you willnot have a hard time getting the repayment fulfilled.
Learn more about ways that you can utilise bridging finance as a property developer by reading about Richard Butler Creagh online.