AAP Finance Brokers’ Post

When it comes to applying for Bridging Finance, credibility is key. Here are some important factors to consider before submitting your application: 👉 If you're purchasing a property below market value, it's important to understand why. Simply stating that the vendor needs a quick sale won't cut it. What are the reasons behind the quick sale? 👉 If you haven't viewed the property, ask yourself why not? If you've appointed someone to act on your behalf, make sure they have the necessary experience and have provided you with pictures or videos of the property and local area. 👉 If you plan to flip the property and it needs refurbishments, make sure you've costed the refurbishments, obtained comparable local sales figures, and hire trustworthy tradespeople. This gives the lender comfort that you understand the financials. 👉 Ensure you can provide proof of income, especially if you're self-employed. This includes SA302's, up-to-date company accounts and a reference from your accountant. 👉 Be prepared to provide other satisfactory financial documents, such as bank statements and a credit report. If there are any blips on your credit file you need to be able to explain the reason for the blip. 👉 If you're a non-homeowner, be prepared to demonstrate your understanding of property and the running costs associated with maintaining the target property. 👉 Be transparent about the source of your deposit and show a build-up of funds. Don't believe everything you see on social media about 100% funding being available. 👉 Make sure you can demonstrate available funds to cover the ongoing running costs of the property while the bridging facility is in place. 👉 Ensure your ID is up to date and shows your correct residential address. Being on the electoral roll is also important. #bridgingfinance #propertyfinance #mortgage

Every property deal has its unique challenges, and it’s in those complex scenarios where we really thrive. 🏢➡️🏘️ In this post, we share how we're helping a client transform a commercial unit into residential flats by crafting a tailored finance solution. If you’re dealing with a tricky property finance situation or exploring investment options, let’s connect! We specialise in finding the right financial path, no matter how complex the case. 💡 #PropertyFinance #CommercialToResidential #CreativeFinancing #DevelopmentFunding #BridgingLoans

From Commercial to Residential: Creative Finance Solutions for Complex Property Deals Ever come across a property deal that looked perfect on paper, but the finance options were anything but straightforward? We're working with a client who wants to purchase a commercial unit and convert it into residential flats. The complexity? Traditional lenders saw too many risks—zoning issues, development timelines, and the challenge of securing financing for both the purchase and conversion. Rather than letting the deal slip away, we're structuring a bespoke solution. A combination of bridging finance for the initial purchase and to cover the conversion costs, as well as a longer term residential investment mortgage to exit the bridge. This gave the client the financial breathing room to turn their vision into reality. Property finance, especially in cases like these, rarely follows a simple path—but that’s where we thrive. Whether it’s bridging loans, development funding, or complex investment cases, we specialise in finding solutions when others can’t. If you’re navigating a similar scenario or just exploring your options, I’d love to hear what challenges you’re facing. Let’s connect and chat through it!"

🔔 Attention: Property developers, investors, business owners and property professionals. Unveiling a suite of some of our services – from crafting robust construction finance strategies to unlocking hidden opportunities in residual stock, navigating commercial investments, and securing game-changing finance solutions. Our services include: ✅ Construction Finance: Procuring efficient and effective capital solutions demands seasoned insight and expertise. Utilising our extensive background in construction and development finance, alongside our robust network encompassing Banks, Fund Managers, and Ultra-High Net Worth Individuals, we strategise and procure Debt and Equity solutions for our clients across the entire capital spectrum, including: -Senior Debt (1st mortgage) -Mezzanine Debt (2nd mortgage) -Equity – Preferential & Joint Venture ✅ Residual Stock Finance: The dynamics of property development and construction finance entail unlocking Equity & Profits from the sale of the final lots or units. In slower markets where sales face delays, this can impede your pipeline progress. We facilitate the unlocking of opportunities by structuring Residual Stock Finance facilities on unsold project portions. This serves to: -Payout construction finance loans, reducing interest costs and offering more time for progressive sell-downs. -Release equity for subsequent developments, circumventing mezzanine debt expenses and accelerating project timelines for enhanced returns. ✅ Commercial Investment: Our team comprises seasoned brokers and ex-bankers with extensive experience financing diverse properties and portfolios, ranging from basic tilt-slab sheds to specialised going-concern assets. Having navigated both market booms and the challenges of the GFC, the team offer comprehensive expertise. ✅ Equity Capital: Leverage our extensive relationships with Institutional Fund Managers and Ultra-High Net Worth Individuals to structure and secure Equity Capital. The opportunities and benefits of Equity Capital can vary widely, contingent upon asset quality, strategies, and sponsors. Our expertise spans various forms, including: -Preferred Equity (“Pref”) for Development projects, combining characteristics of debt and equity. -Tailored solutions for projects of any scale, from single assets to entire portfolios. ✅ Advisory Services: Beyond traditional brokerage, we offer tailored advisory services to select property developers and commercial property investors. Our advisory scope is flexible, driven by client needs, our capabilities, and collaborative partnerships with external advisors and consultants. If you or anyone in your network would like to chat further I’d be happy to catch up for a coffee and explore further. Jake Sgarbossa Head of Commercial Email: jake@mymf.com.au Direct: 0439 958 375 Phone: 03 8256 1914 Address: 2 Albert Place, South Melbourne VIC 3205 Website: mymf.com.au

Toronto rent reporting group applauds government's plan to include rent payments towards credit score. Contact me to discuss the latest scoop in real estate! #FinancialSecurity #FixedRate #SmartChoices #Mortgage #MortgageBroker #HomeFinancing #Refinance #MortgageAdvice

Do you like to know the data behind the headlines to help you inform your clients? I got you. For all my bridging but also residential brokers. Here at LendInvest if you are new to bridging or want to get involved in the growing market we have lots of ways we can support you. Just get in touch with me and I can talk you through what we can do for you. “We often talk about short-term property finance as a tool for investors who may want to embark on a refurbishment project or buy a property at auction, for example, but the most popular use of bridging this quarter was amongst homebuyers who wanted to save their purchase in a chain break.“ https://lnkd.in/ePNuKJRw LendInvest (LSE: LINV) LendInvest Mortgages

Toronto rent reporting group applauds government's plan to include rent payments towards credit score. Contact me to discuss the latest scoop in real estate! #commercial #mortgage #broker #realestate #rates #outsmartthebanks #Refinance #HomeLoans #HomeFinancing #MortgageAdvice

Great to have caught up with Tatyana Stefanova CeMAP of Ultimate Finance to discuss Ultimate's bridging finance offering. Even better was at there was also a rate reduction too! It was great discussing all of the issues that I as a broker and Ultimate as lender faces when we get new enquires. One of the obstacles bridging finance borrowers face is what value a lender bases their loans on. Every lender is different and what is commonly used is the 180 day value which tends to be lower than the Market Value. This means that the borrower has to contribute more towards the purchase. But with Ultimate Finance, their bridging loans are based on a property's Open Market Value and they lend up to 75% LTV! But thats not all! Ultimate Finance can assist with Below Market Value (BMV) purchases and in some cases, they can fund up to 100% capped at 75% gross of the OMV. For example in a recent case a portfolio of properties valued at £1.1m was being purchased for £750k, all with tenants in situ, and the landlord retiring and wanting a quick sale. Ultimate were able to offer 100% funding when the interest was serviced by the borrower. However they also allowed for the interest to be retained which meant that the borrower only had to contribute £49,410 towards the purchase rather than the the £187,500 (25% of the purchase price). At Capital 8 Finance, we have access to a wide panel of lenders and can offer a wide range of financial solutions to support you and your property investment and development ambitions. So whether you are a seasoned property investor or you are just starting your property investment journey, Capital 8 Finance are here to help For a free, no obligation initial consultation, contact us on: ☎️ 07746937796 ✉️ enquiries@capital8finance.co.uk 🌐 www.capital8finance.co.uk

Asset finance is a type of funding that allows you to purchase expensive assets without using up business capital. The term ‘asset finance’ incorporates different types of funding, including hire purchase and refinancing. The best option for you depends on various factors including whether you want to own the asset when the financing agreement ends. You may also wish to consider whether you have existing assets that you can refinance, which would give you a cash lump sum to make a new purchase. https://lnkd.in/eW-UBCQA

Building a #propertyportfolio requires significant #financialplanning. Getting your #borrowing #capacity assessed by a lender before diving into the property search process is a strategic and practical approach for several reasons: #realistic Budgeting: Knowing your borrowing capacity helps you establish a realistic budget for property hunting. It prevents you from wasting time and energy exploring options that are beyond your financial reach. #focused Property Search: You can narrow down your property search to options that align with your budget. This focused approach streamlines the process and increases the likelihood of finding suitable properties. #Negotiation Strength: Having a pre-approved borrowing capacity enhances your negotiation position. Sellers and real estate agents take pre-approved buyers more seriously, as it indicates your ability to secure financing. Streamlined Purchase Process: Pre-approval accelerates the purchase process. Once you find the right property, having your finances pre-approved allows you to act swiftly, potentially giving you an advantage in a competitive market. Focused Property Criteria: Understanding your borrowing capacity enables you to refine your property criteria. You can prioritize features and locations that fit within your budget, ensuring a more efficient and satisfying search. #Financial Planning: A pre-approved borrowing capacity allows for better financial planning. You can assess the impact of mortgage payments on your overall budget, ensuring a comfortable and sustainable financial commitment. Smooth Transaction Process: Pre-approval reduces the likelihood of financing-related delays during the transaction. It provides a clear roadmap for the financial aspect of the purchase, contributing to a smoother and more predictable process. In essence, obtaining your borrowing capacity from a lender upfront is a strategic step that not only sets realistic financial parameters but also positions you as a serious and prepared buyer in the competitive real estate market.