Bridging Loans Scenarios

Re-Publish this Article

<h1>Bridging Loans Scenarios</h1><strong> Author: <a href='http://www.articleseen.com/profile_Oliver Smith.aspx'>Oliver Smith</a></strong><br /><p>You can feel like you’re up against a brick wall when it comes to financing for your property. Whether it’s a rehab project or an auction purchase, traditional lenders will deny you. But there’s an opportunity to create cash flow there and you know if you had just the right source, an unacceptable property can be a profitable investment. One way to make that happen is to obtain a bridging loan. The major difference that bridging loans have are: • Give the ability to close quickly • Funds able to be arranged in 24 hours • Funding can be available to you as early as a week in certain situations, but 3-4 weeks for most cases • Terms are typically at the most 12 months • Higher rates and points than conventional • Both commercial and residential purchases are considered Bridging loan creates possibilities for financing where traditional ones would turn down. Because the rates are so high, it is too expensive to consider for the long term. Although it is risky and expensive should the purchase go south, there are many times when it pays its dividends. Here we list the positive aspects of using a bridging loan in different scenarios: Auction Purchases • Didn’t lose deposit (a 10% deposit is usually required) • Able to complete the transaction quickly • Make a significant profit by moving fast on an extremely under market value homes New Home Purchases • Able to negotiate a higher sales price for existing house by not having to be under a time crunch to sell • Peace of mind of not having to simultaneously have home sales and new purchases coincide • Immediately able to make an offer before competition • Negotiated lower sales price for new home by ability to move quickly into the deal without any subject to clauses or contingent clauses that other buyers may have (which is more appealing to a sellers). Also, closing date can also be flexible which is very attractive to sellers. Major Rehab Investor Projects • Gain financing even though the project is in need of a significant amount of major repairs (this would be a property that would be in such a bad condition that traditionally wouldn’t be considered) • Profit from being able to buy at a discounted price Personal Home Sale • Creates the opportunity to have the time to renovate or refurbish prior to being on the market • Higher profit can be achieved through renovations and refurbishments Commercial Property • Move ahead with a transaction to buy a new one while existing is still on market • Increase profitability by not being desperate to find a buyer Regardless if other resources are denying you, there are still other options. Bridging finance creates possibilities to gain your new home purchase or for investors, rehab project. This article listed a few different advantages in several scenarios, but it’s not limited to just those. If you think you have potential opportunities to create a profit benefiting a lender, this might be the right choice for you.</p><strong>About the Author:</strong><br />Oliver Smith is presently working with Best Bridging Loans as a financial suggestions. For more information click on <a rel="nofollow" href="http://www.bestbridgingloans.com/">bridging loans</a>, bridging loan, bridging loans UK, bridging loan UK, <a rel="nofollow" href="http://www.bestbridgingloans.com/">bridging finance</a>. <p> Article Source: <a href='http://www.articleseen.com/Article_Bridging-Loans-Scenarios_109474.aspx'> http://www.articleseen.com/Article_Bridging Loans Scenarios_109474.aspx</a></p>

Article Source : http://www.articleseen.com/Article_Bridging Loans Scenarios_109474.aspx

Keywords : bridging loans, bridging loan, bridging loans UK, best bridging loans, bridging finance,

Category : Finance : Loans