As economic trends influence the availability of funding, the lenders are certainly stringent in relation to their ‘checklist’ when ascertaining the viability of considering your application for finance. Investor Finance comes in many disguises dependent upon your personal situation and requirements. Where possible at Property Circles Network we will keep you informed of what our community of investors source. The benefit of knowing the best deals, from whom to apply, at what rates and to understand the model that best matches your strategy is key to success. We analyse the more common types.
Traditional buy to lets
Is a phenomenon that changed the residential property investment market. It is important to obtain impartial advise in a market that changes on a daily basis. It is possible to find exclusive and semi exclusive deals from specialist lenders not available on the high street. Finding a broker with access to the whole market is an important factor when searching for the right product to fit your strategy. As well as fixed rates, you have discounted, tracker and lifetime mortgages. When sourcing these products they may be specific to HMO’s, multi let, multi unit, single freehold or residential above commercial. It is important to do your own research before talking to a specific lender. Where possible use the internet and a mortgage calculator, as well as product reviews before making any decision. In all cases take professional legal advice before signing or committing to any contractual agreement.
Auction and Bridging Finance
If you are considering buying property at auction, you may require short-term funding or bridging finance. There are lenders who (subject to application) provide a decision in principle in the auction room, over the phone or online. Whether you are employed, self-employed limited company, LLP’s, sole trader or partnership there maybe a solution for you. If meeting the criteria, you may raise funds for residential, commercial, semi-commercial and land. You will probably have to provide additional security, however, an agreement in principle gives you the potential to buy on the day. Before agreeing this type of finance, always seek independent legal advice as to what you are entering into.
There are two types of commercial Mortgages. A business mortgage and a commercial mortgage. High Street lenders offer attractive rates to entice borrowers looking for 50% loan to value or less on a repayment basis. However you will require a clear credit history. Prepare to be patient. More often than not they may require your business banking too. Products from specialist lenders tend to be priced higher or they may not want your business banking. They probably offer 70 – 75% loan to value on interest only terms. Always compare !
All development finance will have strict lending criteria. Rates will vary as each individual transaction will be negotiated with a panel of financiers to achieve the best rate for your project. Due to the complexity related to each development, lenders don’t offer set rates. Be sure to take legal advice and compare offers. Understand the legal and financial complications before signing.
Another form of raising alternative finance and a model that has become increasingly popular over recent years is, Crowd Funding. Simply put, it is the pooling of funds from individual investors to acquire a property under collective ownership. Despite few understanding how this finance option can be put together, it is being widely used with an estimated $34 billion raised this way worldwide in 2015.
We will offer you advice, guidance and support to ensure you have all the information, knowledge and accessible finance at your disposal. As part of our Network, we have a large number of potential finance partners available and we will be on hand to bring like minded investors together in order to help expand portfolios and ultimately increase investment returns.
Becoming more and more popular with the modern investor, Joint Venture funding or JV as described by those within the industry, is a way to leverage other peoples money in order to build an investment portfolio. Nowadays finance can be difficult, timely, impractical and expensive to obtain for the individual who has aspirations of starting out in the world of property investing or for those who are looking to continue growing their portfolios. The ability to use someone else’s money to fund an investment offers a creative, leverageable and cost effective way to purchase, that not only assists the ‘investor to be’ but also offers a great opportunity for the JV finance partner to make a significant return on investment of which they would certainly not be able to achieve whilst their money is sat in the bank.
Why would someone give you the money? Many people have funds sat in bank accounts that is effectively returning nothing, the problem they tend to have is a lack of time available to source investments with higher returns. Most new or existing property investors will have time on their hands, time that can be used to source deals but once a deal has been found they will need the finance… enter the time poor, cash rich individual. This scenario can be a WIN WIN for both parties.
Property Circles Network have the ability to connect individuals who are looking to WIN when it comes to building a property portfolio or increasing the return on thier investment.
Have you found a property deal that you know will work but don’t have the funds?
Do you have money in the bank with interest that is making next to nothing?
WE CAN HELP!!! just send us an email to email@example.com